S&P Global Platts Analytics Launches Weekly Platts JKM LNG Forecasts

  • Commodity LNG

S&P Global Platts ("Platts"), the leading independent provider of information and benchmark prices for the commodities and energy markets, today announced the launch of its new Platts Analytics Weekly Japan-Korea Marker (JKM) Forecast Report.

Platts JKM® is the Liquefied Natural Gas (LNG) benchmark price assessment for spot physical cargoes. The new weekly JKM Forecast Report is powered by proprietary data and modeling from Platts Analytics and provides the expected drivers of supply and demand fundamentals and near-term outlook for JKM pricing.

In the decade since the launch of Platts JKM, Platts' focus has been to help bring increased transparency to the pricing of LNG as the market continues to liberalize and new types of price agreements emerge between buyers and sellers of LNG. LNG is one of the fastest growing commodity markets – the overall market has increased at an average of nine percent over the past four years and looks to continue its expansion in 2020.

Ira Joseph, Head of Global Gas & Power Analytics, S&P Global Platts said: "Against the backdrop of divergence from oil-related pricing, pricing based on LNG fundamentals is increasingly important. Market participants will need to understand what drives market fundamentals and what that means to forecast JKM prices. Despite Platts JKM having plunged to less than half the level it was assessed at the beginning of 2019, Platts Analytics expects further declines in 2020. Our analysis shows that this is attributed to a continued supply glut driven by new production from the US, and tepid demand growth in Asia in part driven by milder seasonal weather”.

Key features of the report include:

- Price forecasts through the next 10 months, updated weekly

- Tables, charts and commentary, including best value along the forecast period

- An outlook on JKM versus current derivatives, such as the expected spread between JKM and European gas prices

- Analysis of the "pull” of LNG into Northeast Asia against global gas indices and trade flows

- Weather outlook and impact on demand

Notes to editors

Platts JKM® was launched in February 2009. It represents the daily tradeable price of spot LNG cargoes delivered into Northeast Asia and reflects the spot market value of cargoes delivered ex-ship (DES) into Japan, South Korea, China and Taiwan. Deliveries into these locations equate to the majority of global LNG demand.

Since June 2018, S&P Global Platts uses its unique Market-on-Close (MOC) methodology to assess Platts JKM. The MOC is a structured day-long process that ends at 4:30pm Singapore time – the timestamp for Platts LNG assessments in Asia, and is an assessment process adopted widely across energy markets. During the MOC, Platts publishes real-time information from active market participants that report firm, named bids, offers and trades in order to test market value and form a representative price assessment at the close of each day. Since July 2018, over 2000 bids, offers and trades have been published as part of the LNG MOC.

In July 2019, Platts and ICE extended their technology partnership to bring the Platts Editorial Window (eWindow)® communication tool to the LNG trading community.

S&P Global Platts Media Contact update

Americas: Kathleen Tanzy, +1 917 331 4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, +65-6597-6241, melissa.tan@spglobal.com
EMEA: Alex Brog, +44 20 7176 7645, alex.brog@spglobal.com and Russ Gerry, +44 207 176 3569, russell.gerry@spglobal.com

About S&P Global Platts

At S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.

S&P Global Platts is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit https://www.spglobal.com/platts/en

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  • Commodity
  • LNG