Platts proposes to launch sixth half-month forward European LNG assessments

Platts, part of S&P Global Energy, is proposing to launch sixth half-month forward cycle assessments, H+6, for Platts DES Northwest Europe (NWE), DES Mediterranean (MED) and DES East Mediterranean (EMM) LNG, time-stamped to 4:30 pm London time, effective April 1.

This proposal follows initial industry feedback and reported market activity that indicates that bid, offer and trade activity is increasing for deliveries occurring further forward.

The assessments would reflect cargoes for delivery in the sixth half-month forward cycle from the date of publication. They would roll on the 16th of each calendar month, or the first business day after the 16th if it is a non-working day. For example, on April 16, the H+6 assessments would reflect July 1-15 pricing and on May 1, the H+6 assessments would reflect July 16-31 pricing. This proposal does not impact the underlying methodology for the DES NWE, DES MED and DES EMM pricing month assessments, and the calculation of these assessments would remain unchanged.

The DES NWE, DES MED and DES EMM pricing month assessments represent the average of the two half-month cycles from the third half-month cycle onwards, which comprise the first full month of delivery. There would also be no impact to the calculation of the cumulative monthly averages under this proposal.

For example, on April 1, the DES NWE, DES MED and DES EMM would continue to represent the average of price assessments for cargoes for delivery in H1 May and H2 May.

Platts is also proposing to launch new assessments for the spread between LNG and European pipeline gas prices, involving the new physical half-monthly NWE assessments.

The new assessments would include the price difference between the relevant-month Dutch TTF contract and the Platts DES NWE 6 Half-Month.

Full details of the existing Platts DES NWE LNG assessments can be found in the Global LNG Specifications Guide .

Please send all feedback, comments and questions to lngeditorialteam@spglobal.com and pricegroup@spglobal.com by Feb 23.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.