S&P Global Platts is proposing to consider for publication only bids and offers that reflect its existing editorial guidelines on nomination deadlines for the JKM assessment in the Asia Pacific LNG Market on Close (MOC) price assessment process from Dec. 16, 2021.
Currently, Platts considers for publication bids and offers with varying nomination deadlines in the APAC LNG MOC process for the JKM assessment, and normalizes them to the standard.
The proposal to not publish bids and offers with nomination deadlines that differ from Platts editorial guidelines would better streamline the price assessment process and reflects the rapidly increased standardization in this area in recent years, according to Platts data analysis.
Under Platts existing editorial guidelines, the delivery period reflected by bids and offers should typically be three to five days long, with the buyer to narrow to a one- or two-day delivery window 30 days before the first day of the traded delivery window.
For transactions reported through the MOC process, buyers should nominate a terminal within a delivery country at least 30 days before the first day of the traded delivery window. Buyers retain the option to substitute delivery port within the same country up to 20 days before the first day of the traded delivery window, subject to ship shore compatibility study (SSCS).Platts would continue to publish bids and offers with varying delivery port nomination deadlines within the same country, and these would be subject to normalization.
Platts existing standard nomination deadline on loading port nomination states sellers have the option to nominate the loading port and may substitute loading port up to 30 days prior to the first day of the traded delivery window subject to the Gross Heating Value (GHV) quality range reported in the trade.
For bids or offers submitted in a volume range, the specific volume should be declared by the seller 30 days prior to delivery, and this declaration deadline should be stated in the offer or bid. Unless stated otherwise by the counterparty at the time of providing data for publication, the bids and offers provided for publication in the APAC LNG MOC process should reflect the above standard.
On vessel nomination, sellers should nominate an LNG ship either 45 days prior to the first day of the traded delivery window or state the base vessel in the offer for more prompt delivery windows under Platts current editorial guidelines. Sellers may substitute delivery vessel up to 30 days prior to the first day of the traded delivery window, subject to SSCS.
Platts is also proposing to continue to consider for publication, offers with delivery periods that fall within 30 days from the date of publication where buyers should nominate the discharge location and delivery window at trade confirmation. For bids with delivery periods that fall within 30 days from the date of publication, sellers should nominate the loading location and LNG vessel, and declare specific cargo volume at trade confirmation.
Furthermore, Platts is proposing to only consider for publication bids and offers with nomination deadlines for delivery window and discharge port that align with deadlines for load port, cargo volume and LNG vessel. Such nominations deadlines should fall on the same day -- either 30 days prior to the final delivery window, or 30 days prior to the initial delivery window.
Separately, Platts is proposing to amend the nomination deadline for buyers option to substitute delivery port within the same country to up to 15 days before the first day of the traded delivery window, subject to SSCS, in a subscriber note published on Sept. 10 (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/091021-platts-proposes-change-in-standard-deadline-for-same-country-delivery-port-nominations-in-jkm-lng-moc).
Platts existing standard terms on nomination deadlines are as follows:
Please send all comments, feedback and questions to LNGeditorialteam@spglobal.com and firstname.lastname@example.org by Oct. 11, 2021. 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.