Platts to change timing, increment guidelines for Asia LNG MOC process

S&P Global Platts will change the timing and increment guidelines for its Asia LNG Market on Close assessment process from Jan. 17, 2022.

Platts will allow a maximum price move of 5 cents/MMBtu per 60 seconds for bids and offers submitted through the Platts Editorial Window, or eWindow communication tool and through a Platts editor for the Asia LNG physical MOC process, and a maximum price move of 5 cents/MMBtu per 30 seconds for bids and offers submitted through the eWindow communication tool and 5 cents/MMBtu per 60 seconds for bids and offers through the Platts editor for the Asia LNG derivatives MOC process.

Platts will also change the final state for the Asia LNG physical MOC process to 16:29:00 Singapore time for eWindow or manual MOC environment, and Asia LNG derivatives to 16:29:30 Singapore time for eWindow MOC environment and 16.29.00 Singapore time for manual MOC environment.

Time allowed for participants to repeat a bid or offer for Asia LNG physical will remain unchanged from the current guideline of maximum 60 seconds following a trade, while the maximum time allowed for participants to repeat a bid or offer for Asia LNG derivatives following a trade will be shortened to 30 seconds, from 60 seconds currently.

An extension of the MOC process will be triggered by a rebid or re-offer following a trade between 16:29:00 and 16:30:00 Singapore time for Asia LNG physical, and between 16:29:30 and 16:30:00 Singapore time for Asia LNG derivatives.

The extension period will last for one minute until 16:31:00 Singapore time for both Asia LNG physical and derivatives in order to adequately test that bid or offer.

The changes will apply to bids and offers submitted by market participants for the Platts JKM, WIM and MEM assessments directly through the eWindow communication tool and through a Platts editor who would then publish bids and offers using the software.

Platts first proposed the change in a subscriber note published Nov. 5: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/110521-platts-proposes-to-change-timing-and-increment-guidelines-for-asia-lng-moc

Under Platts existing timing and increment guidelines, bids and offers for Asia LNG physical submitted directly through the eWindow tool and through a Platts editor can improve by up to 5 cents/MMBtu per 120 seconds, with final state at 16:28:00 Singapore time.

Bids and offers for Asia LNG derivatives submitted directly through the eWindow communication tool can improve by a maximum of 5 cents/MMBtu every 60 seconds, and by a maximum of 5 cents/MMBtu every two minutes in the manual MOC process, with final state at 16:29:00 Singapore time.

The increments have been amended to a maximum of 10 cents/MMBtu every 30 seconds for Asia LNG derivatives since Oct. 12, and to a maximum of 5 cents/MMBtu every 60 seconds for Asia LNG physical since Oct. 8 until further notice, to reflect the current volatility in the market due to European gas market price movements: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/101221-platts-asia-lng-derivatives-market-on-close-incrementability-changes

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers in the MOC process, in order to ensure an orderly and transparent price assessment process.

Guidelines for the publication of bids and offers in the MOC process are available in the Platts LNG Timing and Increment Guide, available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/lng/lng-timing-and-increment-guidelines.

Please send all feedback, comments and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

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.