LNG

September 01, 2023

Platts changes Atlantic LNG standard terms

Platts, part of S&P Global Commodity Insights, has updated the standard terms it reflects in its daily Northwest Europe and Mediterranean LNG price assessments, effective Sept. 1.

The changes are in line with industry feedback and observed changes in trading patterns and norms.

This decision was published Aug. 3 via a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080323-platts-to-change-atlantic-lng-standard-terms, following a proposal July 5 via a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/070523-platts-proposes-changes-to-atlantic-lng-standard-terms.

The changes to the following terms are as follows:

Term Previous Standard Current Standard
Delivery Window Three to five days long, with the buyer to narrow to a one- or two-day delivery window up to 30 days prior to the first day of the traded delivery window Three days long, with the buyer to narrow to a one-day delivery window up to 20 days prior to the first day of the initial delivery window
NWE Discharge location Bilbao, Isle of Grain, Zeebrugge, Gate LNG, Dragon LNG, Montoir, Mugardos, South Hook and Dunkirk Bilbao, Brunsbuttel, Dragon LNG, Dunkirk, Eemshaven, Gate LNG, Isle of Grain, Montoir, Mugardos, South Hook, Wilhelmshaven and Zeebrugge
Disport nomination Buyer to nominate base delivery port at least 30 days prior to delivery. The buyer should retain the option to substitute the discharge port up to 20 days prior, subject to SSCS Buyer to nominate base delivery port at least 30 days prior to delivery. The buyer should retain the option to substitute the discharge port up to 15 days prior, subject to SSCS
Loadport nomination Sellers to nominate the loading port up to 20 days prior to the first day of the traded delivery window subject to the stated (GHV) quality range. Sellers to nominate the loading port up to 15 days prior to the first day of the traded delivery window subject to the stated (GHV) quality range.
Vessel substitution Seller to nominate the LNG carrier up to 20 days prior to delivery. Seller to nominate the LNG carrier up to 15 days prior to delivery.
Operational tolerance Plus/minus 5% at the option of the sellers Plus/minus 3% at the option of the sellers

Standards around GHV, specification, base quantities of 3.5 TBtu in NWE and 3.3 TBtu in the Mediterranean, publishing standards regarding 0.3 TBtu quantity ranges on offers, remain unchanged.

Platts will continue to consider bids, offers and trades outside of the standard terms for publication and review for normalization.

For example, Platts will continue to publish bids and offers with operational tolerances of plus/minus 2%, plus/ minus 4% and plus/minus 5%, but may normalize where appropriate to its based standard of plus/minus 3%.

Please send feedback 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.