Platts Expands its Offering of Daily Liquefied Natural Gas (LNG) Price References
Friday, Jan 09, 2015
Platts, a leading global energy and commodities information provider, has launched a daily price assessment of liquefied natural gas (LNG) originating from East Atlantic terminals in Europe and Africa and bound for global locations. The new LNG assessment, known as the Platts East Atlantic Marker (EAM), complements the Asia LNG benchmark, Platts JKMTM and Platts' broader suite of LNG price references serving Middle East, Australia, West India, and Southwest and Northwest Europe.

"We're pleased to continue to bring greater transparency to price discovery to the burgeoning LNG market on a regional basis," said Shelley Kerr, associate editorial director, Platts LNG and Nuclear.  "With increasing LNG demand from South America and the expansion of LNG re-export activity in Europe, the East Atlantic region has become a balancing point for LNG cargoes destined for both the Atlantic and Pacific basins. We believe that a daily price assessment reflective of this trade will help facilitate the pricing and valuation needs of the marketplace, risk managers, and the industry at large."

Platts EAM reflects the value of spot market LNG cargoes on a free-on-board (FOB) basis originating from such countries as Spain, Netherlands, Norway, Belgium, France, Nigeria and Algeria, and delivered primarily to key consumer regions in South America and Asia-Pacific. The new price reference follows months of consultation with the energy industry and LNG market participants.  

The Platts EAM and other Platts LNG price references are published in Platts LNG Daily, the first-ever daily independent news publication for the global LNG industry, as well as real-time information services Platts' Natural Gas Alert and Platts' European Power Alert.

Platts EAM on January 7 was assessed at $8.70 per million British thermal units (/MMBtu), which is in line with the two half-month cycles of February, while the EAM price for the second half of January stands at $8.75/MMBtu.

The Platts EAM marker assessment represents the average of the two half-month cycles (H1, H2) that comprise the first full month of loading. For instance, on June 4, Platts' EAM (Jul) represents the average of price assessments for cargoes for loading in H1 July and H2 July.

"Whether being sold to Brazil and Argentina, or into the Asia Pacific, end destinations for LNG originating in the East Atlantic have grown in diversity and frequency," said Desmond Wong, Platts managing editor for LNG in Europe, Middle East and Africa. "With the increased demand for flexible volumes in both basins, greater spot market liquidity has been seen in free on board (FOB) transactions, and market participants tell Platts they expect this to continue."  

Platts price assessments are underpinned by structured methodology and rigorous quality protocols.  Visit the LNG methodology and specifications section of the Platts website for details.

With the launch of Platts JKMTM (Japan/Korea Marker) in February 2009, Platts was the world's first independent energy information provider to publish price references on a daily basis for LNG.  In 2010, Platts augmented its offering of LNG price references to include LNG exported from the Middle East and Australia, as well as LNG delivered into West India and Southwest and Northwest Europe.  Platts maintains the world's longest-dated database of daily price history for the commodity.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets.  Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency.  Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets.  A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in London with more than 1000 employees in more than 15 offices worldwide.

About McGraw Hill Financial: McGraw Hill Financial is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company's iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL and J.D. Power. The Company has approximately 17,000 employees in 30 countries.
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