LNG, Metals & Mining Theme, Ferrous, Non-Ferrous

December 20, 2023

Platts launches DES East Mediterranean LNG cargo assessment

Platts, part of S&P Global Commodity Insights, has launched DES East Mediterranean Marker (EMM) price assessment reflecting the value of spot LNG cargoes delivered into East Mediterranean markets, effective Dec. 20, 2023.

Platts publishes EMM as an outright price in $/MMBtu, a differential to Platts DES Northwest Europe, and a differential to Dutch TTF.

East Mediterranean LNG imports have grown significantly over the last two years and are expected to grow further as new infrastructure comes online, according to S&P Global Commodity Insights shipping data. Additionally, market participants have expressed a desire for pricing transparency into a region expected to grow in spot trading liquidity.

BASIS AND LOCATION: The assessments reflect a minimum cargo size of 135,000 cu m delivered ex ship (DES) into the Turkish ports of Aliaga, Dortyol, Etki, Marmara, Ereglisi, and Saros. Prices of LNG spot cargoes delivered into ports in Croatia or Greece with the same minimum cargo size may be considered and normalized to EMM.

TIMING: Platts assess cargoes for delivery in the second, third, fourth and fifth half-month cycles forward from the date of publication. The East Med monthly assessment is based on the average of the two DES East Mediterranean LNG half-months that match the NWE delivery month period.

Bids and offers provided for publication in the Market on Close assessment process typically reflect delivery into ports in Turkey with a buyer's option to substitute the discharge port.

Bids must be expressed with a specific base discharge port. The location chosen sets the conditions for any potential counterparty considering trading.

Buyers retain the option to substitute discharge port within the basis disports in Turkey latest by 15 days before the first day of the traded delivery window, subject to ship shore compatibility study (SSCS). Bids for cargoes for delivery at or less than 15 days from the date of assessment must state the final discharge port.

DELIVERY WINDOW: The delivery period reflected by bids and offers is typically three days long, with the buyer's option to narrow to a one-day delivery window latest by 20 days before the first day of the traded delivery window.

LOADING LOCATION: Platts reflects bids, offers and trades where sellers have the option to nominate the base loading port latest by 15 days prior to the first day of the traded delivery window, subject to Gross Heating Value (GHV) quality range reported in the trade. Offers of cargoes for delivery at or less than 15 days from the date of assessment have to state the load port explicitly.

QUALITY: Market participants should clearly state GHV specifications in bids and offers submitted for publication. Platts DES East Mediterranean assessments will reflect cargoes with a GHV of 1,010-1,130 Btu/Scf. Platts may normalize for quality specifications with different ranges.

QUANTITY: DES East Mediterranean assessments reflect a quantity of 3.3 TBtu, with an operational tolerance, or optol, of +/-3%, at the seller's option. Platts may publish bids and offers with operational tolerances of +/- 2%, +/- 4% and +/- 5%, but may normalize where appropriate to its base standard optol of +/- 3%.

For cargoes offered or bid for in a volume range (e.g. 3.1-3.4 TBtu +/-3%), the specific volume (e.g. 3.3 TBtu +/-3%) will have to be declared by the seller at least 30 days prior to delivery. The quantity range stated in offers published during the MOC process cannot be greater than 0.3 TBtu. An example of an offer with a 0.3 TBtu quantity range would be 3.1-3.4 TBtu, with an operational tolerance of +/- 3% at the seller's option.

LNG VESSEL: Platts standards will reflect LNG vessel size range of 135,000-175,000 cu m. Offers must be expressed with a specific base LNG vessel. Sellers nominate an LNG ship either latest by 15 days prior to the first day of the traded delivery window, or at the time of trade confirmation for a prompter delivery window.

Standard terms: Unless stated otherwise by a counterparty at the time of providing data for publication, the bids and offers provided for publication in the MOC process should reflect these standards, which Platts understands to be broadly typical in the spot market for cargoes delivered into the East Mediterranean.

Platts may publish bids, offers, and trades for spot LNG cargoes that carry different terms and conditions, but may normalize these when considered in final, published assessments. Participants in the MOC process should clearly state in submitted bids or offers terms that differ from these standards.

The assessment is published in Platts LNG Daily, and Platts LNG Alert pages LNG1832, LNG1834, PGN1083, PGN1084, LNG1830, LNG0850, LNG0816, LNG2840, LNG2820, LNG1820, LNG1810, LNG1831, LNG0817, LNG2821, LNG1811, LNG1821, LNG2841, PGN1048, PGN1079, PGN1063, PGN1030, PGN1052, PGN1046, PGN1040, PGN1049, PGN1077, PGN1053, PGN1041, PGN1047 and PGN1054 under the following price database codes:

Assessment Code
LNG DES EMM $/MMBtu AEMMB00
LNG DES EMM $/MMBtu MAvg AEMMB03
LNG DES EMM 0 Half-Month AEMMC00
LNG DES EMM 0 Half-Month MAvg AEMMC03
LNG DES EMM 1 Half-Month AEMMD00
LNG DES EMM 1 Half-Month MAvg AEMMD03
LNG DES EMM 2 Half-Month AEMME00
LNG DES EMM 2 Half-Month MAvg AEMME03
LNG DES EMM 3 Half-Month AEMMF00
LNG DES EMM 3 Half-Month MAvg AEMMF03
LNG NWE vs EMM AEMMV00
LNG NWE vs EMM MAvg AEMMV03
LNG JKM Spore 16:30 vs EMM Ldn 16:30 AEMMT00
LNG JKM Spore 16:30 vs EMM Ldn 16:30 MAvg AEMMT03
LNG MED vs EMM AEMMU00
LNG MED vs EMM MAvg AEMMU03
LNG DES EMM Spot vs Dutch TTF Mo01 $/MMBtu AEMML00
LNG DES EMM Spot vs Dutch TTF Mo01 $/MMBtu MAvg AEMML03
LNG DES EMM Eur/Gj AEMMG00
LNG DES EMM Spot Cumulative Moving Average AEMMI00
LNG DES EMM Spot Eur/MMBtu AEMMJ00
LNG DES EMM Spot Eur/MMBtu MAvg AEMMJ03
LNG DES EMM Spot Eur/MWh AEMMK00
LNG DES EMM Spot Eur/MWh MAvg AEMMK03
LNG DES EMM p/th AEMMH00
LNG DES EMM vs Next Month TTF $/MMBtu AEMMM00
LNG DES Middle East Marker MEM vs DES EMM AEMMN00
LNG DES Middle East Marker MEM vs DES EMM MAvg AEMMN03
LNG EMM Ldn 16:30 vs JKM Spore 16:30 AEMMO00
LNG EMM Ldn 16:30 vs JKM Spore 16:30 MAvg AEMMO03
LNG EMM vs DB London 16:30 AEMMP00
LNG EMM vs DB London 16:30 MAvg AEMMP03
LNG EMM vs HH London 16:30 AEMMQ00
LNG EMM vs HH London 16:30 MAvg AEMMQ03
LNG EMM vs UK NBP London 16:30 AEMMR00
LNG EMM vs UK NBP London 16:30 MAvg AEMMR03
LNG DES EMM vs FOB Gulf Coast Marker AEMMS00
LNG DES EMM vs FOB Gulf Coast Marker MAvg AEMMS03
DES Brazil Netforward vs DES EMM LNG AEMMA00
DES Brazil Netforward vs DES EMM LNG MAvg AEMMA03
LNG DES EMM MAvg AEMMW03

Platts first proposed to launch these assessments Oct. 19 via a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/101923-platts-proposes-des-east-mediterranean-lng-cargo-assessment

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 make comments not marked as confidential available upon request.