Our Price Explained
-
What is Platts Northwest Europe Marker?
What is Platts Northwest Europe Marker?
Platts NWE is the Liquefied Natural Gas (LNG) benchmark price assessment for spot delivered cargoes in the Atlantic Basin. NWE reflects the spot market value of cargoes delivered ex-ship (DES) into Bilbao, Brunsbuttel, Dragon LNG, Dunkirk, Eemshaven, Gate LNG, Isle of Grain, Montoir, Mugardos, South Hook, Wilhelmshaven and Zeebrugge. Deliveries into these locations equate the majority of LNG demand in Northwest Europe.
-
How do we assess Platts Northwest Europe Marker?
How do we assess Platts Northwest Europe Marker?
NWE shows the daily trade value of a spot LNG cargo for a specific delivery time and place, based on trades, bids, offers, and value indications reported to S&P Global Commodity Insights.
We use a Market on Close (MOC) assessment methodology. Since Q2 2018, companies began reporting firm and transparent bids, offers and trades in the MOC process.
We use a Market on Close (MOC) assessment method. The MOC is an all-day process that ends at 4:30 pm London time, the timestamp for Platts LNG assessments in the Atlantic Basin.
During the MOC process, our editors collect information on bids, offers, trades, and market conditions. We also publish data from companies that report specific bids, offers, and trades in the MOC process. All this information is used in the daily assessment, with firm bids and offers open to the market, and trades from these bids and offers, being the most important.
Besides the LNG MOC process information, S&P Global editors talk directly with producers, consumers, traders, brokers, and shippers to gather price data. We publish this data and use it to assess intraday values, which are the reference points for firm bids, offers, and trades in the MOC process. The information collected from market surveys is also considered in the final assessment, along with bids, offers, and trades reported in the MOC.
These inputs are published throughout the day, in real-time, in the form of "market heards", to allow us to test the information, which forms the basis of the assessment and for market participants to give feedback on those inputs.
These inputs are published in real-time as "market heards," allowing us to test the information and get feedback from market participants.
Platts assessments adjust for various factors, including timing/delivery dates, quantity, location, trade terms, and quality. For more details, please refer to our LNG methodology and specifications guide.
-
Evolution of Platts Northwest Europe Marker
Evolution of Platts Northwest Europe Marker
S&P Global Commodity Insights started the first daily LNG price assessment for cargoes in Northwest Europe, called Platts NWE, in June 2010.
While the LNG market has mainly been based on long-term contracts, there has been a clear shift towards short-term and spot deals in recent years. This shift became even more noticeable when Russia invaded Ukraine, stopping natural gas flows to Ukraine. Since then, Europe has turned more to the global LNG market for its energy needs.
From 2016 to 2022, European LNG imports increased dramatically from 41.69 million metric tons to 127.87 million metric tons, more than tripling in six years, according to S&P Global Commodity Insights data.
With this huge increase in LNG imports, interest in Platts NWE has grown, especially as the European LNG and natural gas markets became more separate during this time. As LNG trading volumes grow, the fundamentals of the product become clearer in its pricing. This means LNG prices are becoming distinct from other hydrocarbon markets. Daily LNG spot prices clearly show the tradeable market value for LNG bought and sold each day.
What is Platts Northwest Europe Marker?
Platts NWE is the Liquefied Natural Gas (LNG) benchmark price assessment for spot delivered cargoes in the Atlantic Basin. NWE reflects the spot market value of cargoes delivered ex-ship (DES) into Bilbao, Brunsbuttel, Dragon LNG, Dunkirk, Eemshaven, Gate LNG, Isle of Grain, Montoir, Mugardos, South Hook, Wilhelmshaven and Zeebrugge. Deliveries into these locations equate the majority of LNG demand in Northwest Europe.
