Platts proposes to amend calculation for global LNG arbitrage matrix

Platts, part of S&P Global Energy, proposes to amend the calculation methodology used in its daily global LNG arbitrage matrix assessments to incorporate Two-Stroke freight route cost assessments and the JKM balance-month next-day assessment, effective Dec. 16.

Under the proposed change, Platts would use its daily Two-Stroke LNG freight route cost assessments in $/MMBtu, which were launched March 3, 2025.

For arbitrage calculations involving discharge in Northwest Europe, Platts would use the carbon-inclusive Two-Stroke freight route cost assessments.

Platts would also use the daily JKM balance-month next-day assessments at the Singapore and London market closes from the 16th through the end of each calendar month.

Under the current methodology, the arbitrage assessments use daily TFDE freight assessments and the Pricing Month derivative contract.

As part of the proposed amendment, Platts would use the following existing assessments in the calculations:

JKM derivatives:

JKM Derivatives 16:30 Singapore Balmo-ND: LJKMB00

JKM Derivatives 16:30 London Balmo-ND: NWEBE00

Carbon-inclusive Two-Stroke freight to Northwest Europe:

LNG Carbon-Inclusive Two-Stroke Nigeria-NWE: TSMVW00

LNG Carbon-Inclusive Two-Stroke Middle East-NWE: TSMTO00

LNG Carbon-Inclusive Two-Stroke US Gulf-NWE: TSMZS00

Two-Stroke freight to Japan/Korea:

LNG Two-Stroke Nigeria-Japan/Korea: TSMKK00

LNG Two-Stroke Middle East-Japan/Korea: TSMEA00

LNG Two-Stroke US Gulf-Japan/Korea via Panama Canal: TSMPL00

LNG Two-Stroke US Gulf-Japan/Korea via Suez: TSMQK00

LNG Two-Stroke US Gulf-Japan/Korea via Cape: TSMQZ00

Two-Stroke freight to West India:

LNG Two-Stroke Nigeria-W India: TSMKU00

LNG Two-Stroke Middle East-W India: TSMEK00

LNG Two-Stroke US Gulf-W India via Suez: TSMQU00

LNG Two-Stroke US Gulf-W India via Cape: TSMRJ00

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Nov. 17.

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