Platts proposes to launch US Gulf Coast LNG marker forward curve

Platts, part of S&P Global Energy, proposes to publish daily assessments for US Gulf Coast Marker LNG derivatives, and additional interregional LNG derivative spreads, effective July 1.

Platts has observed significant growth in the US GCM FOB market, resulting in increased interest in transparency regarding futures prices. Currently, Platts publishes a daily physical spot LNG GCM assessment, which reflects cargoes loading 30–60 days forward from the date of publication.

Platts is proposing to introduce six monthly financial derivative assessments for the first-month forward (Mo01), second-month forward (Mo02), third-month forward (Mo03), fourth-month forward (Mo04), fifth-month forward (Mo05), and six-month forward (Mo06). These monthly derivative assessments would be published in $/MMBtu and would roll on the first working day of each month.

For assessment purposes, Platts would consider a range of data, including but not limited to transactions, bids or offers, for the respective derivative contracts. In the absence of observable bids, offers or transactions, Platts may consider indicative values, or data from adjacent markets, such as DES Northwest Europe and DES JKTC via established freight market, when assessing these derivatives.

In addition to outright GCM derivative assessments, Platts proposes to publish GCM Mo01 as a spread to NWE Mo01 and TTF Mo01, and similarly for subsequent months on the same forward strip up to six months forward. These derivative spreads reflect the M2M values at the time of the Platts assessment close. Where relevant, GCM spreads to JKM derivatives will also be published.

Platts would utilize the latest market information available until the close of the Platts Market on Close assessment process at 4:30 PM London time for the new derivative assessments and would adhere to the London publishing schedule.

Please direct all feedback, comments, and questions to lngeditorialteam@spglobal.com and pricegroup@spglobal.com by April 21.

For written comments, kindly indicate clearly if your comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make those not marked as confidential available upon request.