LNG Roundtable: Asian players discuss growing pricing transparency and LNG MOC

The Middle East LNG Institute facilitated The LNG Roundtable, supported by S&P Global Platts, in Singapore in July. Against the backdrop of LNG’s fast-increasing commoditization, participants debated “How to Trigger ‘LNG Markets 2.0’ to be Fit for Purpose for the Great Energy Transition?”, with 45 individuals from more than 30 of Asia’s key LNG trading, broking and exchange companies participating, the vast majority actively contributing to the event’s discussions. Price assessment evolves with LNG’s commoditization During the roundtable, players shared their increasing comfort with, and in many cases eagerness to expedite, the growing transparency and speed of LNG transactions. While participants generally agreed the industry requires more efficient and transparent pricing, the specific processes to facilitate this were debated. Platts has always used the Market on Close (MOC) methodology to assess LNG prices, including the benchmark JKM. Since June 13, 2018, companies have begun reporting firm and transparent bids, offers and trades in the Platts MOC process. Now, in addition to the market survey, Platts is using high-quality and verifiable information in the forms of these bids, offers and trades in the assessment process. The LNG MOC is a structured approach to price assessment. Between June 13 and August 30,… continue reading

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Source: CTRM Center

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