What is Platts GCM™?
On June 16, 2016, S&P Global Platts launched the Platts GCM™ (Platts Gulf Coast Marker), a price assessment reflecting the daily export value of LNG traded free on board (FOB) from the US Gulf Coast.
Platts GCM™ reflects bids, offers and transactions on an FOB US basis, normalized to the U.S. Gulf Coast, and expressed USD per British thermal units (MMBtu). The natural gas infrastructure that intersects the United States, Mexico and Canada is the world's largest and most integrated natural gas market. The US is expected to be the world’s largest LNG producer by 2023, overtaking both Qatar and Australia, which are currently the largest and second largest, respectively.
Unlike Australia, Qatar, and other large LNG exporting nations, US LNG does not have destination restrictions. There is also much more flexibility around offtake volumes. These factors make US LNG attractive for buyers and sellers looking to trade on a short term basis.
As the market continues to transact more often on a short term/spot basis, US LNG prices will gradually play a growing role in influencing the price of LNG around the world.