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LNG DAILY
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Volume 18 / Issue 192 / September 30, 2021

JKM hits record high amid brisk

short-covering activity JKM TM AAOVQ00 34.470 +2.815 ▲
Cumulative monthly average (Nov) AAOVS00 28.517
Previous month average (Oct) AAOVS03 19.019
CNL WTW JKTC ACNLF00 0.528
KEY DRIVERS / MARKET HIGHLIGHTS
■■APAC physical MOC: 4 entities place 3 bids, 5 offers
PLATTS DAILY LNG MARKERS ($/MMBtu)
■■APAC derivative MOC: 8 entities place 4 trades, 14 bids, 2 offers, Sep 30 Change
5 withdrawals DES Japan/Korea Marker (JKM)
■■Shenzhen Energy buy tender heard unawarded JKM (Nov) AAOVQ00 34.470 2.815 ▲
H2 Oct AAPSU00 33.800 2.450 ▲
■■IEASA issues tender for 4 partial cargoes, Oct-Dec H1 Nov AAPSV00 34.146 2.595 ▲
■■TTF hit Eur99/MWh near close H2 Nov AAPSW00 34.794 3.036 ▲
H1 Dec AAPXA00 35.928 3.917 ▲
■■Atlantic MOC: BP bids into NWE at TTF+$0.10/MMBtu
JKM (Nov) Japanese Yen AAOVR00 3856.159 335.173 ▲
JKM (Nov) Chinese Yuan (CNY/mt) LJCMS00 11624.690 980.937 ▲
SHIPPING MARKET HIGHLIGHTS DES Japan/Korea (JKM) derivatives Singapore close*
Balmo-ND LJKMB00 35.003 2.629 ▲
■■Time-charter rates remained at $61,000/d in Pacific Nov LJKMO00 31.760 1.410 ▲
■■BW Pavilion Aranthera heard fixed by Total at $120,000/d Dec LJKMO01 35.150 3.300 ▲
Jan LJKMO02 34.000 3.500 ▲
DES Japan/Korea (JKM) derivatives London close*
NEWS HEADLINES
Nov JKLMO00 31.410 0.810 ▲
■■JKM LNG benchmark hits record high on global gas supply Dec JKLMO01 34.800 2.700 ▲
tightness, winter demand........................................................................ 6 Jan JKLMO02 35.000 2.925 ▲
DES Mediterranean Marker (MED)
■■Spain increases shippers’ obligations for winter gas supply............... 9 MED (Nov) AASXY00 31.337 1.860 ▲
■■NWE LSFO cracks firm amid improving power generation prospects....9 H2 Oct AASXZ00 31.140 2.020 ▲
H1 Nov AASYA00 31.312 1.885 ▲
■■China’s peak power load may hit record high this winter, coal usage H2 Nov AASYB00 31.362 1.835 ▲
set to rise: NDRC......................................................................................10 DES Northwest Europe Marker (NWE)
■■Bangladesh to start up third LNG terminal in 2025-2026....................11 NWE (Nov) AASXU00 31.237 1.760 ▲
H2 Oct AASXV00 31.200 2.180 ▲
H1 Nov AASXW00 31.212 1.785 ▲
CONTENTS H2 Nov AASXX00 31.262 1.735 ▲
■■Market Commentaries............................................................................. 2 Middle East Marker (MEM)
MEM (Nov) LMEMA00 33.250 2.700 ▲
■■PriceComparisons................................................................................... 3 H2 Oct LMEMB00 32.600 2.350 ▲
■■Recent Tenders and Strips...................................................................... 4 H1 Nov LMEMC00 32.925 2.450 ▲
H2 Nov LMEMD00 33.575 2.950 ▲
■■News.......................................................................................................... 6
H1 Dec LMEME00 34.675 3.825 ▲
■■Shipping Prices......................................................................................... 7 DES West India Marker (WIM)
■■Hydrogen & Carbon................................................................................20 WIM (Nov) AARXS00 33.250 2.700 ▲
H1 Oct LMEAA00 32.250 2.450 ▲
H2 Oct LMEAB00 32.600 2.350 ▲
H1 Nov LMEAC00 32.925 2.450 ▲
H2 Nov LMEAD00 33.575 2.950 ▲
SHIPPING RATES, SEP 30 H1 Dec LMEAE00 34.675 3.825 ▲
$/day Ballast rate DES West India Marker (WIM) derivatives Singapore close*
Asia Pacific day rate AARXT00 61,000 AAXTN00 100% Nov AWIMB00 30.785 1.385 ▲
Atlantic day rate AASYC00 63,000 AAXTM00 100% Dec AWIMM01 34.175 3.275 ▲
TCR Australia-Japan ATCRA00 61,000.00 Jan AWIMM02 33.050 3.500 ▲
TCR USG-NWE ATCRB00 63,000.00 FOB Gulf Coast Marker (GCM)
TCR USG-Japan ATCRC00 63,000.00
GCM LGCSM01 28.000 1.600 ▲
*For full forward curve, see page 4
DAILY CUMULATIVE AVERAGES AND MONTHLY AVERAGES
Cumulative Previous
Sep 30 ($/MMBtu) monthly average month average
JKM AAOVS00 28.517 Nov AAOVS03 19.019 Oct LNG NETBACK PRICES ($/MMBtu)
DES West India AALIC00 27.509 Nov AAWIC03 18.480 Oct Sep 30 Change
DES Mediterranean AADCU00 25.930 Nov AASWC03 17.824 Oct FOB Australia AARXR00 33.110 2.740 ▲
DES Northwest Europe AASDF00 25.921 Nov AASDE03 17.824 Oct FOB Middle East AARXQ00 32.500 2.550 ▲
FOB GCM Loading Month LGCSM00 24.495 Nov LGCSM31 16.777 Oct DES Brazil Netforward LEBMH01 29.730 1.670 ▲
JKM Yen AAOVT00 3148.399 Nov AAOVT03 2089.502 Oct FOB Singapore AARXU00 33.470 2.825 ▲
JKM Yuan LJCWM00 184.286 Nov LJCWM03 114.542 Oct FOB Murmansk AARXV00 30.597 1.740 ▲

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LNG DAILY SEPTEMBER 30, 2021
MARKET COMMENTARIES
JKM hits record high amid brisk
short-covering activity
Asia-Pacific regional spot LNG prices hit a record high Sept. 30 on the
back of unrelenting short-covering activity in the region and alongside
a significant rally in the European gas markets.
The S&P Global Platts JKM for November was assessed at $34.47/
MMBtu Sept. 30.
Platts assessed the first half of November at $34.146/MMBtu and
the second half of November at $34.794/MMBtu, with a wider
intramonth contango of 64.8 cents/MMBtu compared with an
intramonth contango of 13.6 cents/MMBtu Sept. 29.
During the Platts Market on Close assessment process Sept. 30,
Trafigura posted a three-legged order-cancels-other-order bid for a
Dec. 2-6 DES JKTC cargo at parity to the average of JKM December, or
the average of JKM November plus $1.60/MMBtu, or the average of TTF
December plus $2.6/MMBtu.
On the offer side, DGI posted a three-legged order-cancels-other-
order offer for a Nov. 11-13 DES JKTC cargo at the average of JKM
November plus $3.15/MMBtu, or the average of TTF November plus
$2.5/MMBtu, or the balance of the month — pricing period for Sept.
30-Oct. 15 — minus 5 cents/MMBtu, which equated to an implied value
of $32.324/MMBtu.
Shell also placed an offer for Nov. 8-10 DES JKC at $34.10/MMBtu
while Mercuria offered Dec. 10-14 DES JKTC at $36.10/MMBtu.
On the derivatives MOC, Castleton bought from Trafigura 50 lots of
JKM November derivatives contract at $31.80/MMBtu 4:21:22 pm SGT and
4:21:27 pm SGT. Platts assessed November JKM at $31.76/MMBtu Sept.
30, above the most competitive bid from Vercer at $31.75/MMBtu. The
traded offers did not demonstrate market value incrementally and Platts
assessments reflect prevailing values at the 4:30 pm Singapore close.
For December derivative contracts, Trafigura bought from Shell 25
lots at $35/MMBtu at 4:22:13 pm SGT while Glencore bought from Onyx
at $35.15/MMBtu at 4:23:54 pm SGT. Platts assessed December JKM at
$35.15/MMBtu, at the last traded offer.
The H1 November-JKM/H2 October-NWE spread against the USGC
to north Asia/Northwest Europe freight fell to 55.1 cents/MMBtu on
Sept. 29 from $2.64/MMBtu on Sept. 28, Platts data showed. However,
big intraday price movements in the respective basins made interbasin
trading difficult.
Furthermore, a Singapore-based trader said “as [spot LNG] prices
go up, the spread would close up further, the cost in LNG boil off is too
much, charter rate accounts for around 40% now and 60% is boil off.”
Meanwhile, north Asian buyers continued to be priced out as spot
prices remained buoyant at $30/MMBtu levels.
Shenzhen Energy closed a buy tender Sept. 29 for Nov. 1-3, Nov.
9-12 or Nov. 23-26 DES Diefu and Dec. 25 DES Yuedong. However, the
tender was heard unawarded due to high offers received.
“All other independent [South Korean] importers are naturally
priced out of market, out of our reach at current levels, we can only
lower operation rates at our power plants and consume lower-priced
term contract volumes now,” a South Korean importer said.
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
PLATTS LNG ASIA JKM RATIONALE & EXCLUSIONS
The S&P Global Platts JKM for November was assessed at $34.47/MMBtu Sept. 30.
Platts assessed the first half of November at $34.146/MMBtu and the second
half of November at $34.794/MMBtu, with an wider intra-month contango of
64.8 cents/MMBtu, compared to an intra-month contango of 13.6 cents/MMBtu
Sept. 29.
The value for Nov. 9 was assessed at $34.14/MMBtu, below Shell’s offer for a
Nov. 8-10 DES JKC cargo with a volume of 3.3-3.5 TBtu at $34.10/MMBtu. This
offer was normalized 5 cents/MMBtu higher on wider quantity range, and
equated to a fixed price of $34.15/MMBtu.
DGI offered for Nov. 11-13 DES JKTC, with sulfur limit of 20 mg/Nm3 at the
average of JKM November average plus $3.15/MMBtu. This offer was normalized
7 cents/MMBtu lower on higher sulfur content, and equated to a fixed price of
$34.98/MMBtu.
The value for Dec. 4 was assessed at $35.70/MMBtu, above Trafigura’s bid at
TTF December plus $2.60/MMBtu for a Dec. 2-6 DES JKTC delivery cargo, with a
volume of 3.3 TBtu. This bid was normalized 2 cents/MMBtu lower on lower
quantity, and equated to a fixed price of $35.690/MMBtu.
During the derivatives Platts Market on Close assessment process, Castleton
bought from Trafigura 50 lots of JKM November derivatives contract at $31.80/
MMBtu 4:21:22 pm SGT and 4:21:27 pm SGT. Platts assessed November JKM at
$31.76/MMBtu Sept. 30, above the most competitive bid from Vercer at $31.75/
MMBtu. The traded offers did not demonstrate market value incrementally and
Platts assessments reflect prevailing values at 4:30 pm Singapore close.
For December derivative contracts, Trafigura bought from Shell 25 lots at $35/
MMBtu at 4:22:13 pm SGT while Glencore bought from Onyx at $35.15/MMBtu at
4:23:54 pm SGT. Platts assessed December JKM at $35.15/MMBtu, at the last
traded offer.
This rationale applies to symbol(s) <AAOVQ00>
Exclusions: No market data was excluded from the Sept. 30 assessment.
PLATTS LNG ASIA WIM RATIONALE & EXCLUSIONS
The S&P Global Platts WIM for November was assessed at $33.25/MMBtu on
Sept. 30.
Platts assessed the first half of November at $32.925/MMBtu and the second half
of November at $33.575/MMBtu, with an wider intra-month contango of 65 cents/
MMBtu, compared to an intra-month contango of 15 cents/MMBtu Sept. 29.
Platts assessed the November JKM/WIM spread at $1.22/MMBtu on Sept. 30.
This rationale applies to symbol(s) <AARXS00>.
Exclusions: None
PLATTS LNG US FOB GULF COAST DAILY RATIONALE & EXCLUSIONS
The FOB Gulf Coast Marker (GCM) was assessed at $28.000/MMBtu.
The assessment was based on tradeable values reported by market
participants at $29.200/MMBtu and $30.500/MMBtu by the middle of the day for
FOB USGC cargoes loading 30 to 60 days forward in conjunction with downward
price movements in the major destination markets by close.
This rationale applies to symbol(s) <LGCSM01>
Exclusions: None
PLATTS LNG EUROPEAN ASSESSMENT RATIONALE & EXCLUSIONS
The Northwest Europe Marker (NWE) for November was assessed at $31.237/MMBtu.
H1 NWE for November was assessed at $31.212/MMBtu, based on tradeable
values and movements in associated gas and LNG markets.
H2 NWE for November was assessed at $31.262/MMBtu, based on tradeable
values and movements in associated gas and LNG markets.
The Mediterranean Marker (MED) for November was assessed at $31.337/MMBtu.
H1 MED for November was assessed at $31.312/MMBtu, based on tradeable
values and movements in associated gas and LNG markets.
H2 MED for November was assessed at $31.362/MMBtu, based on tradeable
values and movements in associated gas and LNG markets.
BP bid for an Nov 17-19, 3.4 TBtu cargo into Rotterdam at ICE TTF Nov Front
Month Average +$0.10/MMBtu. This was converted to a fixed price of $31.112/
MMBtu. This was normalized down 1 cent due to the prompter alternate
discharge port nomination than the Platts standard, to $31.102/MMBtu.
The assessments were based on pricing information from market sources for
cargoes delivering within the region for November delivery.
This rationale applies to symbol(s) <AASXU00, AASXY00>
Exclusions: none
2
LNG DAILY SEPTEMBER 30, 2021

REPORTED ATLANTIC BIDS, OFFERS AND TRADES ($/MMBtu)

Date Seller Loading Buyer Basis Loading window Offer/Bid Notes
Best bids/offers
Sep 30 Rotterdam delivery BP DES Nov 17-19 TTF ICE+0.10 bid MOC

REPORTED APAC BIDS, OFFERS AND TRADES ($/MMBtu)

Date Buyer Destination Seller Source Basis Delivery period Bid/Offer Notes
Best bids/offers
Sep 30 Trafigura JKTC DES Dec 2-6 Dec JKM+0.00 bid MOC
Sep 30 Trafigura JKTC DES Dec 2-6 Nov JKM+1.60 bid MOC
Sep 30 Trafigura JKTC DES Dec 2-6 Dec TTF+2.60 bid MOC
Sep 30 JKTC DGI DES Nov 11-13 Nov JKM+3.15 offer MOC
Sep 30 JKTC DGI DES Nov 11-13 Balmo JKM-0.05 offer MOC
Sep 30 JKTC DGI DES Nov 11-13 Nov TTF+2.50 offer MOC
Sep 30 JKC Shell DES Nov 8-10 34.10 offer MOC
Sep 30 JKTC Mercuria DES Dec 10-14 36.10 offer MOC
Sep 30 Castleton DGI Nov JKM derivatives 31.80 traded offer MOC derivatives, 25 lots
Sep 30 Castleton DGI Nov JKM derivatives 31.80 traded offer MOC derivatives, 25 lots
Sep 30 Trafigura Shell Dec JKM derivatives 35.00 traded offer MOC derivatives, 25 lots
Sep 30 Glencore Onyx Dec JKM derivatives 35.15 traded offer MOC derivatives, 25 lots
Last 5 trades APAC
Sep 27 Trafigura JKTC PetroChina DES Nov 1-5 Nov JKM+0.39 traded bid MOC
Sep 27 Trafigura JKTC Cheniere DES Nov 12-16 Nov TTF+2.85 traded bid MOC
Sep 23 Trafigura JKTC Vitol DES Nov 29-Dec 3 Nov TTF+3.00 traded bid MOC
Sep 23 Trafigura JKTC PetroChina DES Nov 17-21 Nov TTF+2.70 traded bid MOC
Sep 21 Trafigura JKTC Unipec DES Nov 1-5 Nov TTF+2.60 traded bid MOC

Nevertheless, the lower temperatures forecast in South Korea and
China from mid-October to early-November has also contributed to
increases in heating demand in north Asia.
“A few weather forecast companies in China [predicted] that it will
be a colder-than-normal winter, might be why the NOCs are coming
out again,” a China-based end-user said. “As long as trading houses
and NOCs continue to buy, inactivity from other north Asian end-users
won’t be able to make a dent in the market.”
On the flip side, the probability of higher-than-normal temperatures
during winter in Japan remained high, according to the Japan
Meteorological Agency’s latest weather forecast. Many companies had
comfortable levels of inventory, and some Japanese end-users were
heard to be selling prompt LNG cargoes.
On other tenders, both Petronas’ sell tender offering Nov. 1-3 DES
JKTC loading from Gladstone LNG and APLNG’s tender offering an Oct.
28-29 loading closed Sept. 29. Both tenders were heard awarded to
trading houses, however, pricing details were unavailable at the time of
publishing.
Argentina’s IEASA issued a buy tender for four partial LNG cargoes
to be delivered October-December DES Escobar, closing Oct. 5.
—Shermaine Ang
European LNG prices surge past $31/MMBtu
for first time, Argentina demand up
The cost of a cargo delivered into Europe reached the most expensive
Activity in the Atlantic remains low on the back of the strong
volatility in global spreads, as well as the underlying TTF values.
Traders have also showed a lack of appetite to take on the risk of
moving cargoes with such a high price tag.
The TTF November contract hit a intra-day peak of Eur99/MWh
near London close, going on to sink to Eur86.485/MWh after. Platts
assessed the TTF November contract at $30.964/MMBtu.
“Market [TTF] has lost track of any fundamentals at the moment.
Lots of risk ahead of October 1st when we see winter flows. Could be
some surprises from Russia,” said a Europe-based trader.
In the Atlantic MOC, BP bid for a DES Rotterdam Nov. 17-19 delivery
cargo at TTF+$0.10/MMBtu.
In tenders, Argentina’s IEASA issued a tender for four DES partial
cargoes for Oct-Dec delivery, closing Oct. 5.
Market participants remained curious as to why IEASA would look to
procure volume coming out of the winter season, also at a time of record
high prices which said was most likely to due a lack of available supply.
In shipping, time-charter rates remained at $61,000/d in the Pacific
basin and increased by $1,000 at $63,000/d in the Atlantic.
A Cheniere controlled X-DF/MEGI vessel was reported fixed by IOC
for a round trip voyage at $150,000/d.
The BW Pavilion Aranthera, 170,000 cu m, was reported fixed by
Total for a period of four months at $120,000/d.
—Piers De Wilde

Analytics
Integrated, innovative.
value ever recorded on Sept. 30, with prices shooting past the $31/ Across geography
MMBtu level, leaving the total value of a delivery at approximately and across commodity.
$109.3 million.
Platts assessed the DES Northwest Europe at $31.237/MMBtu on
Sept. 30, up $1.76/MMBtu on-day and the highest level since Platts Visit spglobal.com/analytics-insight
began assessing this market in 2010.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 3
LNG DAILY SEPTEMBER 30, 2021

ASIA/MIDDLE EAST ($/MMBtu), SEP 30*

DES Japan/Korea Marker (JKM) Platts Dutch TTF
JKM (Nov) AAOVQ00 34.470 Oct GTFWM10 30.530
JKM (H2 Oct) AAPSU00 33.800 Nov GTFWM20 30.963
JKM (H1 Nov) AAPSV00 34.146 Competing fuel prices
JKM (H2 Nov) AAPSW00 34.794
Japan Customs Cleared crude oil (Jul) ($/b) AAKOP00 71.76 Final
JKM (H1 Dec) AAPXA00 35.928
Japan Customs Cleared crude oil (Aug) ($/b) AAKOM00 73.76 Estimated
Asian Dated Brent (16:30 Singapore) ADBAA00 13.54
HSFO 3.5% sulfur 180 CST FOB Singapore LUAXZ00 11.98
JKM vs Henry Hub futures AAPRZ00 28.899
NEAT Coal Index JKTCB00 6.376
JKM vs NBP futures AAPSA00 1.146
Minas crude oil LCABO00 12.813
JKM vs TTF LNTFJ00 3.507
Naphtha CFR Japan LNPHJ00 15.417
JKM vs Asian Dated Brent (16:30 Singapore) AAPSB00 20.926
JKM vs MED (16:30 London) ALNGB00 3.133
JKM vs NWE (16:30 London) ALNGA00 3.233 EUROPE ($/MMBtu), SEP 30
DES Japan/Korea (JKM) derivatives Singapore close $/MMBtu Eur/MWh Eur/MMBtu
Balmo-ND LJKMB00 35.003 DES Mediterranean Marker (MED)
Nov LJKMO00 31.760
MED (Nov) AASXY00 31.337 LNMTA00 92.210 LNMXA00 27.045
Dec LJKMO01 35.150 MED (H2 Oct) AASXZ00 31.140
Jan LJKMO02 34.000 MED (H1 Nov) AASYA00 31.312
Feb LJKMO03 33.700 MED (H2 Nov) AASYB00 31.362
Q1 2022 LJKQR01 32.700 Dated Brent (16:30 London) ADBAB00 13.59
Q2 2022 LJKQR02 16.600 MED vs Henry Hub futures AASYF00 25.603
Summer 2022 LJKSN01 16.350 MED vs TTF LNTFS00 0.374
Winter 2022 LJKSN02 17.000 MED vs NBP futures AASYH00 -0.525
2022 LJKYR01 19.500 MED vs Dated Brent (16:30 London) AASYJ00 17.748
2023 LJKYR02 12.250 MED vs NWE ALNSA00 0.100
2024 LJKYR03 9.600 MED vs JKM AASYM00 -3.133
DES Japan/Korea (JKM) derivatives London close DES Northwest Europe Marker (NWE)
Nov JKLMO00 31.410 NWE (Nov) AASXU00 31.237 LNNTA00 91.916 LNNXA00 26.959
Dec JKLMO01 34.800 NWE (H2 Oct) AASXV00 31.200
Jan JKLMO02 35.000 NWE (H1 Nov) AASXW00 31.212
Feb JKLMO03 34.700 NWE (H2 Nov) AASXX00 31.262
Q1 2022 JKLQR01 34.500 Dated Brent (16:30 London) ADBAB00 13.59
Q2 2022 JKLQR02 18.400 NWE vs Henry Hub futures AASYE00 25.503
Summer 2022 JKLSN01 15.500 NWE vs TTF LNTFN00 0.274
Winter 2022 JKLSN02 16.150 NWE vs NBP futures AASYG00 -0.625
2022 JKLYR01 19.250 NWE vs Dated Brent (16:30 London) AASYI00 17.648
2023 JKLYR02 12.000 NWE vs MED AASYK00 -0.100
NWE vs JKM AASYL00 -3.233
2024 JKLYR03 9.350
NWE as a % of NBP AASYD00 98.04
DES West India Marker (WIM)
Competing fuel prices
WIM (Nov) AARXS00 33.250
Northwest Europe fuel oil LAEGR00 12.53
DES West India Marker (WIM) derivatives Singapore close CIF ARA 15-60 day thermal coal CSAAB00 9.24
Nov AWIMB00 30.785
Dec AWIMM01 34.175 NORTH AMERICA ($/MMBtu), SEP 30
Jan AWIMM02 33.050
Feb AWIMM03 32.800 FOB Gulf Coast Marker (GCM)
Q1 2022 AWIMQ01 31.950 GCM LGCSM01 28.000
Q2 2022 AWIMQ02 16.050 Dated Brent (16:30 London) ADBAB00 13.59
Summer 2022 AWISN01 15.920 GCM vs JKM LGMJM01 -6.470
Winter 2022 AWISN02 15.825 GCM vs Henry Hub futures LGMHM01 22.133
2022 AWIMY01 18.775 GCM vs TTF LNTFG00 -2.530
2023 AWIMY02 11.525 GCM vs NWE LGEUR00 -3.237
2024 AWIMY03 8.850 GCM vs MED LGMET00 -3.337
GCM vs NBP futures LGMNM01 -3.862
Carbon Neutral LNG
GCM vs Dated Brent (16:30 London) LGMDB00 14.411
CNL WTW JKTC Differential (ex-Australia) ACNLF00 0.528 GCM vs USGC HSFO LGMFO00 17.050
CNL WTT JKTC Differential (ex-Australia) ACNLB00 0.116
CNL DES JKTC Differential (ex-Australia) ACNLG00 0.112 Competing fuel prices
CNL Combustion JKTC ACNLJ00 0.411 US Gulf Coast high sulfur fuel oil LUAXJ00 11.01
FOB Middle East New York Harbor 1%S fuel oil LUAXD00 12.48
FOB Middle East AARXQ00 32.500
*Japan Customs Cleared value shows latest available CIF price published by the Ministry of Finance,
FOB Australia (netback) converted to US dollars per MMBtu. All other values reflect Platts most recent one-month forward
JKM (Nov) AAOVQ00 34.470 assessments for each product in each region, converted to US dollars per MMBtu. JKM Marker, SWE
(-) Freight AAUSA00 1.36 LNG and NWE LNG average the assessments of the two half-months comprising the first full month of
FOB Australia AARXR00 33.11 forward delivery. Asian LNG assessments assessed at Singapore market close 0830 GMT, European
LNG assessment assessed at London market close 1630 UK time. NYMEX Henry Hub futures and
Key gas price benchmarks ICE NBP futures values taken at Singapore market close and London market close. ICE NBP futures
Japan Customs Cleared LNG (Jul) LAKPN00 9.71 Final converted from Pence/Therm to $/MMBtu. Asian Dated Brent crude oil assessed at Asian market close
Japan Customs Cleared LNG (Aug) LAKPM00 10.15 Estimated 0830 GMT and converted from $/barrel to $/MMBtu. Detailed assessment methodology is found on
www.platts.com.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 4
LNG DAILY SEPTEMBER 30, 2021

RECENT TENDERS AND STRIPS

Tender/ Tender (Loading) or Slots/
strip Issuer/location type delivery period cargoes Opening Closing date Validity Notes Results
September 30
Tender IEASA - Escobar Buy 01-Oct-21 - 1 DES 05-Oct-21 Four partial LNG cargoes for Oct-
31-Dec-21 Dec deliveries
Tender Shenzhen Energy - Buy 01-Nov-21 - 2 DES 28-Sep- 29-Sep-21 29-Sep-21 One cargo for Nov. 1-3, Nov. 9-12 heard unawarded
Shenzen Diefu 25-Dec-21 21 or Nov. 23-26 DES Diefu and
another cargo for Dec. 25 DES
Yuedong. Closing 6pm SGT.
Tender Petronas - Sell 01-Nov-21 - 1 DES 29-Sep-21
Gladstone LNG 03-Nov-21
Tender APLNG - Australia Sell (27-Oct-21 - 1 DES 28-Sep- 29-Sep-21 29-Sep-21 Closing 5pm SGT
Pacific LNG 29-Oct-21) 21
Tender PPC - Greece Buy 15-Dec-21 - 1 DES 28-Sep-21 30-Sep-21
15-Dec-21
Tender Sakhalin Energy - Sell (01-Nov-21 - 1 DES or 28-Sep- 30-Sep-21 01-Oct-21
Sakhalin 01-Nov-21) FOB 21
Tender Novatek - Russia Sell 10-Dec-21 - 1 DES 23-Sep-21 DES NWE delivery heard awarded at TTF plus
07-Jan-22 $0.30 to 0.40/MMBtu
Tender Indian Oil Corp Buy 06-Nov-21 - 1 DES 24-Sep-21 heard awarded at approximately
(IOC) - Dahej 06-Nov-21 mid $26/MMBtu
Tender BOTAS - Turkey Buy 01-Oct-21 - 20 DES 27-Sep-21 DW: Oct 4-10, Oct 11-17, Oct
28-Feb-22 18-24, Oct 25-31, Nov 1-7, Nov
8-14, Nov 15-21, Nov 22-28, Nov
29- Dec 5, Dec 6-12, Dec 13-19,
Dec 20-26, Dec 27-Jan 2, Jan
3-9, Jan 10-16, Jan 17-23, Jan
24-30, Jan 31 – Feb 6, Feb 7-13,
Feb 14-20
Tender EGAT - Map Ta Buy 24-Oct-21 - 2 DES 20-Sep-21 22-Sep-21 deliveries for Oct 24-26 and Oct heard not awarded
Phut 01-Nov-21 30-Nov 1
Tender Petrobangla - Buy 24-Sep-21 - 1 DES 20-Sep-21 22-Sep-21 Awarded to Vitol
Bangladesh 25-Sep-21
Tender Angola LNG - Sell 18-Oct-21 - 1 DES 28-Sep-21 DES Middle East and India
Angola LNG 24-Oct-21
Tender Rupantarita Buy 24-Oct-21 - 1 DES 28-Sep-21
Prakritik Gas 25-Oct-21
Company Limited -
Bangladesh
Tender Pertamina - Sell (17-Oct-21 - 2 FOB 24-Sep-21 Cargo 1: Oct. 17-19 loading;
Bontang 15-Nov-21) Cargo 2: Nov. 5-6, 8-10 or 12-15
loading
Tender Unipec - China Buy 01-Sep-21 - 11 DES 24-Sep-21 TTF, Brent or Fixed Price. 11
31-Mar-22 cargoes: Nov.23-27, Dec.3-7,
Dec.18-27, Dec.24-30, Jan.11-
15, Jan.17-23, Jan. 24-30,
Feb.16-20, Mar.1-6, Mar.11-17
and Mar.18-27
Tender Egas - Egypt Sell (26-Sep-21 - 1 FOB 20-Sep-21 Heard awarded to AOT above
27-Sep-21) $23/MMBtu
Tender Rupantarita Buy 19-Oct-21 - 1 DES 21-Sep-21 30-Sep-21
Prakritik Gas 21-Oct-21
Company Limited -
Bangladesh
Tender CNOOC - North Sell (22-Nov-21 - 1 FOB 15-Sep-21 15-Sep-21 JKM Nov basis, closes Sep 15 heard awarded at JKM
West Shelf 24-Nov-21) 5pm valid till 7pm November average minus
approximately $1/MMBtu FOB
Tender ExxonMobil - Sell (19-Oct-21 - 1 DES or 14-Sep- 15-Sep-21 heard awarded at approximately
Papua New Guinea 20-Oct-21) FOB 21 $26/MMBtu DES for a 4.0 TBtu
LNG cargo
EOI Oman LNG - Oman Sell 24-Oct-21 - 1 DES heard not awarded
LNG 26-Oct-21

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 5
LNG DAILY SEPTEMBER 30, 2021

NEWS SOUTH AMERICA ($/MMBtu), SEP 30

DES Brazil Netforward
JKM LNG benchmark hits record high on DES Brazil (Oct)
DES Brazil vs NWE Fuel Oil Derivative
LEBMH01
LAARM01
29.730
17.200
global gas supply tightness, winter demand DES Brazil vs DES MED LNG
DES Brazil vs Dated Brent
LASWM01
LADBM01
-1.607
16.141
■■JKM supported by European gas prices, portfolio optimization DES Brazil vs Henry Hub (16:30 London) LAHHM01 23.996
■■Lower winter temperatures forecast in China, South Korea DES Brazil vs JKM (16:30 London) LAJKM01 -4.740
DES Brazil vs NBP (16:30 London) LABPM01 -2.132
■■Power shortages in China creating anxiety over LNG inventories

Spot Asia-Pacific LNG prices hit a record high on Sept. 30. on NORTH AMERICAN FEEDGAS ($/MMBtu), SEP 29
persistent supply constraints in global gas markets and strong winter
Daily average US LNG feedgas cost ALNFG00 5.391
restocking demand among Asian end-users. 30-day moving average US LNG feedgas cost ALNUS00 4.625
The S&P Global Platts JKM for November was assessed $2.82/ Daily average USGC LNG feedgas cost ALNFH00 5.462
MMBtu higher day on day at $34.47/MMBtu on Sept. 30. This is the 30-day moving average USGC LNG feedgas cost ALNUG00 4.653
highest level for the LNG benchmark for Asian spot LNG since it was Export facility Estimated feedgas cost
launched in early 2009. Sabine Pass ALNFA00 5.443
LNG prices in the region continued to be supported by robust Corpus Christi ALNFB00 5.490
Cove Point ALNFC00 4.788
European gas hub prices and intense portfolio optimization activity by
Cameron ALNFD00 5.502
international LNG suppliers, according to industry participants. Freeport ALNFE00 5.466
Lower winter temperatures forecast in China and South Korea, as Elba Island ALNFF00 5.662
well as concerns over a power shortage in China were sparking spot Facility feedgas costs represent a calculation derived from S&P Global Platts’ North American gas spot
price indices at the hub(s) from which feedgas would be procured most economically for the export
demand for winter cargoes by end-users. facility. The average summary costs are an average of the relevant export facilities’ feedgas costs
“JKM’s record high helps showcase how tight global gas markets weighted by Platts Analytics’ daily estimated volume delivered to each facility.

are at the moment,” Jeff Moore, Manager, S&P Global Platts Asian LNG
Analytics, said. US CARGO CANCELLATIONS, SEP 30
Nov-21 0
Oct-21 0
Advertisement Sep-21 0
Aug-21 0
Jul-21 0
Jun-21 0
May-21 0
Apr-21 0
Mar-21 0
Feb-21 5
Jan-21 2
Dec-20 0
The figures are collected from market sources.

NATURAL GAS FUTURES ($/MMBtu), SEP 30

NYMEX HH Singapore close (Nov) AAPSD00 5.571
NYMEX HH Singapore close (Dec) AAPSE00 5.696
ICE NBP Singapore close (Nov) AAPSF00 33.324
ICE NBP Singapore close (Dec) AAPSG00 33.687
NYMEX HH London close (Nov 21) AASYN00 5.734
NYMEX HH London close (Dec 21) AASYO00 5.865
ICE NBP London close (Nov 21) AASYR00 31.862
ICE NBP London close (Dec 21) AASYS00 32.642
NYMEX HH US close (Nov 21) NMNG001 5.867
NYMEX HH US close (Dec 21) NMNG002 5.991

MARINE FUEL LNG BUNKER, SEP 30

$/MMBtu $/mt (Oil) $/mt (LNG)
Singapore LNBSG00 36.070 LNBSM00 1393.853 LNBSF00 1875.640
Eur/MWh $/mt (Oil) $/mt (LNG)
Rotterdam LNBRT00 97.900 LNBRM00 1284.331 LNBRF00 1730.092
MMBtu to $/mt (oil) factor: 38.643; MWh to $/mt (oil) factor: 11.322; MMBtu to $/mt (LNG) factor: 52.000.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 6
LNG DAILY SEPTEMBER 30, 2021

PLATTS WIM RLNG DAILY PRICES, SEP 30

“Unlike the record set earlier this year, JKM is firmly supported by $/MMBtu Rupee/MMBtu
elevated European hub prices and both could certainly go higher this winter Ex-Terminal
especially if aided by colder-than-normal temperatures,” Moore added. Dahej RLEDA00 35.17 RLEIA002611.27
Hazira RLEDB00 35.33 RLEIB002622.70
The previous record high of $32.50/MMBtu on Jan. 14 was set amid Dabhol RLEDC00 35.28 RLEIC002619.16
transportation bottlenecks, supply outages and record winter Mundra RLEDE00 35.32 RLEEI002621.89
Kochi RLEDD00 35.82 RLEDI002659.07
temperatures boosting end-user demand. Average RLEDF00 35.38 RLEIF002626.82
In Europe, inflows of LNG remain constrained due to strong Location
regional demand and reduced local supply, while demand for gas in the Ahmedabad RLDDJ00 35.67 RLDIJ002648.40
Morbi RLDDK00 35.82 RLDIK002659.02
region has been strong due to the economic rebound post-lockdowns Panvel RLDDL00 35.93 RLDIL002667.33
The relentless surge in European gas hub prices, as well as this Dabhol RLDDC00 35.93 RLDIC002667.33
Vijaipur RLDDM00 35.86 RLDIM002662.09
month’s LNG supply disruptions in the US, Oman and Malaysia have Kota RLDDN00 35.86 RLDIN002662.09
Chhainsa RLDDO00 35.92 RLDIO002666.86
ramped up the competition for spot LNG cargoes between the Pacific Jagdishpur RLDDP00 35.92 RLDIP002666.86
and Atlantic basins — pushing prices up even further. New Delhi RLDDQ00 35.92 RLDIQ002666.86
Koottanad RLDDR00 36.46 RLDIR002706.99
Furthermore, a recent power crunch in China was creating some Kakinada RLDDS00 36.54 RLDIS002712.47
anxiety over LNG inventories in the world’s top LNG importer. Average RLDDT00 35.99 RLDIT002671.48

LNG major Unipec had also in the week ended Sept. 26 purchased
up to 15 LNG cargoes in a strip tender for deliveries from late-November
2021 to March 2022, sources with the tender document told Platts.
This buy-tender, along with another one for several cargoes by
another large northeast Asian power utility, has heightened concerns
among industry participants about how well-prepared Asia-Pacific
importers might be for the winter.
This was despite the fact that several Asian end-users had started
their winter preparations months ahead, with Unipec, ENN, CNOOC and
CPC notably purchasing dozens of cargoes in strip buy-tenders — and
depleting available spot supply across the year.
Fear of sustained Q4 rally
In the near-term, market participants fear that colder weather
across the north Asia, or JKTC region, during the winter season could
Prices are net-forward calculations derived from the Platts WIM and exclude VAT and CST sales taxes.
Delivered prices represent the cost of delivery from the nearest connected LNG terminal via pipeline.
exacerbate the tight cargo supply situation.
“Although the current price levels are unsustainable for the long-
term, they can easily remain through the winter heating season as
consumption is elevated by inelastic demand sectors,” Moore said.
This week, lower temperature forecasts than average in China and
South Korea has led to some end-user interest in picking up spot
cargoes to ensure inventory levels were at even more comfortable
levels, sources said.
The significant strength in prompt prices have tilted the market
structure into a rarely seen backwardation into the peak winter months.
Platts assessed the JKM derivative forward curve at $35.15/MMBtu,
(continued on page 9)

LNG DAILY
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Phone: +1-713-655-2275
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© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 7
LNG DAILY SEPTEMBER 30, 2021

SHIPPING PRICES

SHIPPING RATES, SEP 30 FREIGHT ROUTE COSTS, SEP 30 ($/MMBtu)

$/day Asian discharge ports
Asia Pacific day rate AARXT00 61,000 Japan/Korea South China/Taiwan West India
Atlantic day rate AASYC00 63,000 Middle East AAUUA00 2.17 AAUSH00 1.89 AAUSP00 0.51
TCR Australia-Japan ATCRA00 61,000.00 Australia (Dampier) AAUSA00 1.36 AAUSI00 1.09 AAUSQ00 1.31
TCR USG-NWE ATCRB00 63,000.00 Australia (Gladstone) ACABA00 1.37 ACABB00 1.51 ACABC00 2.13
TCR USG-Japan ATCRC00 63,000.00 Bontang AOJKA00 0.93 AOCTA00 0.66 AOWIA00 1.28
Bintulu ABJKA00 0.96 ABCTA00 0.56 ABWIA00 1.17
$/MMBtu Singapore ASJKA00 1.06 ASCTA00 0.66 ASWIA00 0.88
PLF1 Middle East-Japan/Korea AAUUA00 2.17 Tangguh ATJKA00 0.91 ATCTA00 0.78 ATWIA00 1.53
PLF2 Middle East-NWE AAUTE00 2.40 Trinidad via Suez AAUSB00 5.10 AAUSJ00 4.79 AAUSR00 3.32
PLF3 Trinidad-NWE AAUUC00 1.25 Trinidad via Panama AAUXB00 3.54 AAUZB00 4.30
Trinidad* AAUZC00 3.54 AAUZD00 4.30
Nigeria AAUSC00 4.02 AAUSK00 3.57 AAUSS00 2.61
Algeria AAUSD00 3.75 AAUSL00 3.45 AAUST00 2.09
SHIPPING RATES ($1000s/DAY) Belgium AAUSE00 4.35 AAUSM00 3.89 AAUSU00 2.49
Peru AAUSF00 3.05 AAUSN00 3.49 AAUSV00 3.82
300 Russia AAUSG00 0.53 AAUSO00 0.79 AAUSW00 2.08
Spain ACAAA00 3.92 ACAAB00 3.48 ACAAC00 2.25
Norway ACAAH00 4.99 ACAAI00 4.37 ACAAJ00 3.07
USGC* LAUVA00 3.73 LAUVB00 4.49 LAUVC00 3.65
200 USGC via Panama LAUVI00 3.73 LAUVL00 4.49
USGC via Suez LAUVJ00 5.62 LAUVM00 4.98 LAUVO00 3.65
Asia Pacific USGC via Cape LAUVK00 5.70 LAUVN00 5.22 LAUVP00 4.45
Atlantic EMEA discharge ports

100 South West Europe North West Europe Kuwait/UAE

Middle East AAUSX00 2.04 AAUTE00 2.40 LMEMM00 0.27
Australia (Dampier) AAUSY00 3.13 AAUTF00 3.50 LMEMN00 1.59
Australia (Gladstone) ACABD00 3.97 ACABE00 4.35 ACABI00 2.42
Trinidad AAUSZ00 1.28 AAUUC00 1.25 LMEMP00 3.05
0
Nigeria AAUTA00 1.52 AAUTG00 1.61 LMEMQ00 2.86
Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21
Algeria AAUTB00 0.31 AAUTH00 0.65 LMEMR00 1.83
Source: S&P Global Platts Belgium AAUTC00 0.55 LMEMS00 2.37
Peru AAUTD00 3.16 AAUTI00 3.26 LMEMT00 4.13
Russia AAUUB00 3.92 AAUTJ00 4.16 LMEMU00 2.93
Spain ACAAD00 0.55 LMEMV00 1.99
SHIPPING CALCULATOR, SEP 30 Norway ACAAK00 0.94 ACAAL00 0.54 LMEMW00 2.81
Murmansk AARXW00 0.64
Australia- Middle East- USGC* LAUVD00 1.71 LAUVE00 1.67 LMEMX00 3.52
Japan/Korea India USGC via Suez LMEMY00 3.52
Ship size (mt) 72980.77 72980.77 USGC via Cape LMEMZ00 4.31
Trip length (days) 9 3 Americas discharge ports
Carrier day rate ($/day) 61000 61000 US Atlantic Coast Argentina Brazil
Day rate cost ($/MMBtu) 0.35 0.15 Middle East AAUTK00 1.74 AAUTS00 2.80 ACAAP00 3.25
Boil-off cost 0.70 0.24 Australia (Dampier) AAUTL00 1.98 AAUTT00 2.82 ACAAQ00 3.41
Supplementary boil-off cost ($/MMBtu) 0.22 0.07 Australia (Gladstone) ACABF00 2.07 ACABH00 2.43 ACABG00 3.01
Cost of voyage* ($/MMBtu) 1.36 0.51 Trinidad AAUTM00 0.45 AAUTU00 1.48 ACAAR00 1.00
Nigeria AAUTN00 1.17 AAUTV00 1.71 ACAAS00 1.49
*Includes port cost.
Algeria AAUTO00 0.72 AAUTW00 1.89 ACAAT00 1.67
Belgium AAUTP00 0.65 AAUTX00 2.15 ACAAU00 1.92
Peru AAUTQ00 1.65 AAUTY00 1.25 ACAAV00 1.93
Russia AAUTR00 2.59 AAUTZ00 3.61 ACAAW00 5.10
Spain ACAAE00 0.62 ACAAF00 1.92 ACAAG00 1.56

Analytics
Integrated, innovative. Norway ACAAM00 0.73 ACAAN00 2.57 ACAAO00 2.48
Across geography USGC* LAUVG00 2.30 LAUVH00 1.81
and across commodity.
*Most economic.
All values calculated based on prevailing spot market values during the day for LNG, bunker fuel and
ship chartering. No route cost is calculated for Zeebrugge to NW Europe, or Spain to SW Europe. Other
Visit spglobal.com/analytics-insight routes appear blank on days when a public holiday in one or another location means underlying values
are not published. Detailed assessment methodology, including assumed route times and underlying
values, is found on www.platts.com.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 8
LNG DAILY SEPTEMBER 30, 2021
$34/MMBtu and $33.70/MMBtu for the December, January and
February contracts, respectively.
With competing fuels much cheaper than LNG, market sources said
that the high LNG spot prices would devastate spot demand in South
Asia, as well as deter new entrants to the LNG market in Southeast Asia.
“Whatever demand we are noticing from Indian players [are for]
own demand … for their own refinery needs, which they need to
import for their own consumption. [At such prices, there is no new
demand, no new customers,” an Indian LNG importer said.
With Q4 prices expected to remain elevated, the end-user said
many gas consumers were now contemplating a switch to alternative
fuels to meet production capacity.
—Kenneth Foo, Eric Yep
Spain increases shippers’ obligations
for winter gas supply
■■Sliding
scale increases January reserves to 5.5 days
■■Stocks22% lower at end August amid record prices
■■Government intervention buffers retail price rise to 4.3% in Q4
Spain has approved a Winter Plan for gas under which shippers will be
obliged to hold reserves of up to 5.5 days’ worth of contracted
capacity, up from a previous 3.5 days, the government said in the state
gazette Sept. 29.
The reserves have to be held in liquid LNG form, making the stocks
more readily available to meet spikes in demand. The stocks may be
held either in tank or floating offshore, according to the Boletin Official
del Estado, or BOE.
The obligation is on a sliding scale, with 5.5 days to be held in
January, which is the most likely month to see adverse weather, while
December and February obligations will be 4 days, and November and
March 1.5 days.
Previously the obligation was for 3.5 days of reserves through the
entire winter period, which in Spain in considered to run from
November to March, inclusive.
Small-scale users (less than 8 GWh contracted) are exempt.
The sliding scale means that 16 days’ worth of gas is immobilized in
winter, compared to 17.5 days under the previous plan, the Ministry said.
The reserves can only be mobilized following an alert issued by gas
grid operator Enagas, usually due to a cold snap declaration, a spike in
demand from gas-fired generators, or force majeure on gas supplies.
The plan confirms the proposal submitted by Enagas in July, but
since then the gas supply situation has become more critical in the
face of record high prices and relatively empty long-teem storage.
Long term stocks were 22% lower at the end of August than they
were at the same point last year, the Ministry said, with 24.9 TWh held,
equivalent to 75% full, after benchmark gas prices rose more than
sixfold over the period.
Gas prices in Spain, similarly to other regional markets, have
consistently broken new highs with the spot price rising nearly fourfold
from the start of the year. The PVB day-ahead contracts was assessed
by S&P Global Platts on Sept. 29 at a record high of Eur82.60/MWh.
In January, the PVB day-ahead price spiked 31% in one day after at
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
least one LNG cargo due to be delivered was diverted without sufficient
warning to another market, leaving the Iberian market short on a day
when it saw record cold weather, which obliged Enagas to order the
release of 1.5 days’ of winter reserves.
Price measures
In response to the high prices, the Spanish government has also
pushed through a series of emergency clawback and tax measures to
soften the potential blow to consumers.
For the fourth quarter, the new measures have reduced a potential
35% price spike in benchmark last resort tariff (TUR), used by around
20% of gas consumers, to just a 4.3% increase quarter on quarter, it
announced Sept. 29.
The reduction was aided by the government capping the raw
material passthrough from a 130% increase to a 35% increase quarter
on quarter. For Q1, it plans to cap the pass through impact to 15%.
As part of the tariff update for the new gas year, the Ministry has
also reduced storage tariffs, applicable from Oct.1 but increased
injection and withdrawal levies.
—Gianluca Baratti
NWE LSFO cracks firm amid improving power
generation prospects
■■Market in contango through to end of 2021
■■Aug NWE industrial gas demand lowest in at least five years
The low (1%) sulfur fuel oil market has been strengthening in
Northwest Europe of late as surging gas prices encourage more
burning of the liquid fuel for power generation, with the trend looking
set to continue.
S&P Global Platts assessed the prompt-month FOB Northwest
Europe 1%S fuel oil crack at 44.1 cents/b on Sept. 29. LSFO has
predominantly been in positive territory since Sept. 16, having risen
from minus $3.202/b on June 22 and hitting a six-month high at
$1.12/b on Sept. 21.
Meanwhile, the forward curve is in contango through the fourth
quarter. Platts assessed the November crack at 76.8 cents/b and the
December crack at 90.8 cents/b. From then on it looks set to weaken
slightly, with the March 2022 crack at 83.8 cents/b on Sept. 29.
While LSFO can be used for power generation in Europe, both it and
3.5%S fuel oil can find their way into power generation in Asia. But of all
the types of fuel oil, including 0.5%S fuel oil which complies with the
International Maritime Organization’s sulfur cap for marine fuel burnt on
the high seas and which is the predominant bunker fuel, LSFO has seen
the most marked price increases in the high gas price environment.
Analysts at Russian investment bank VTB Capital said clear
bullishness for fuel oil has yet to emerge. “While no clear
improvements have been observed for fuel oil, elevated gas prices
could prove supportive for it as an alternative fuel for power
generation,” Dmitry Loukashov, head of oil and gas research at VTB
Capital said in a research note Sept. 29.
However, some trade sources said bullishness has already started
to gain traction. “We see strong support in the entire fuel oil market for
9
LNG DAILY SEPTEMBER 30, 2021
the first time in months,” one trader said.
In 2019, refiners in the Amsterdam-Rotterdam-Antwerp hub used
natural gas to power all their operations, while Greece used 30% gas
and 70% fuel oil and Singapore used primarily fuel oil, according to S&P
Global Platts Analytics.
Refiners who can use fuel oil will have an unusual advantage this
winter as its cost will be significantly lower than purchased natural
gas, Platts Analytics said.
That comes amid soaring gas prices. Platts assessed LNG Japan/
Korea DES Spot cargoes at $31.655/million BTU on Sept. 29, compared
with $5.198/million BTU on the equivalent date in 2020.
August industrial gas demand in Northwest Europe fell to its lowest
in at least five years, with lower consumption mainly seen in the
Netherlands and the UK, analysts at Platts Analytics said.
That aligned with the anecdotal evidence of at least three
refineries in these two countries making the switch from burning gas
to LPG, with the Dutch TTF currently trading well above equivalent NWE
liquids prices, Platts Analytics said.
—Tom Washington, David Petutschnig
China’s peak power load may hit record high
this winter, coal usage set to rise: NDRC
■■Todivert energy supply to northeast region in winter
■■Northeast power utilities to buy 100% of coal through contracts,
cut spot price exposure
■■Peak power load likely to hit new record high in coming winter
China will take additional measures to ensure stable energy supplies,
mainly coal, natural gas, and electricity, for the coming winter-spring
heating season, amid expectations that peak power loads could hit
record highs and coal consumption rise further in coming months, the
country’s top economic and policy planner the National Development
and Reform Commission said at a press briefing on Sept. 29.
“It’s critical to ensure energy supply to the northeast regions where
winter is long and cold, resulting in higher energy demand for heating,”
NDRC said in a transcript released late Sept. 29, noting that it would
strengthen coordination with relevant departments, and divert energy
supply to the northeast region during the winter heating season.
Under the NDRC’s arrangement, northeast China’s power
generation and heating companies signed another batch of medium
and long-term contracts with coal mines in Beijing on Sept. 25, raising
the proportion of such contracts to 100%, it said.
A group of coal mines in good working condition in the Shanxi,
Shaanxi, and Inner Mongolia regions had been selected as key
emergency suppliers, especially to the northeast regions in winter,
NDRC said, adding that it would improve power rationing in the
northeast and prioritize residential and agricultural sectors.
China will always prioritize energy supply to households, NDRC
said, noting that residential electricity demand accounts for less than
20% of total power consumption while residential natural gas demand
accounts for less than 50% of total gas consumption, which should be
fully guaranteed.
China’s peak power load is expected to reach a new record in the
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
coming winter, along with higher coal demand that exceeded market
expectations in 2021, supported by economic growth and heating
demand, NDRC said.
Gas supply
China has also stabilized natural gas supply for winter by boosting
domestic gas production and reserves, accelerating the construction
of gas storage facilities and increasing gas imports this year, according
to NDRC.
China produced 136.1 Bcm of natural gas in the first eight months
of this year, up 11% year on year, and secured 174.4 Bcm of natural gas
for winter from pipeline gas imports and spot LNG cargoes, NDRC said.
NDRC had asked upstream gas suppliers to sign full-year and
heating season supply contracts with local gas distributors for
volumes that exceeded actual consumption in 2020, and said it would
ensure gas injection is on schedule and all gas storages are filled
before winter.
“We expect that the country’s available gas storage volume to
exceed 27 Bcm before the beginning of the winter, up from last year.
And available gas storage volume is expected to exceed 200 million
cubic meters/day during peak winter,” NDRC said, and adding that
emergency gas storage for peak shaving was available.
The commission said local governments and gas suppliers had
been tasked with drafting a list of non-residential users whose gas
demand can be cut in an emergency and diverted to residential users,
for 300 Mcm/day of gas, and give preferential supply to key areas for
heating in the northern regions.
Referring to the surge in international gas prices, NDRC expects
that the price spike had limited impact on domestic use as city-gate
natural gas prices are regulated by the government.
Coal and power
NDRC said it would further boost domestic coal production, coal
imports, and utilities’ coal storage above a safe level before the
heating season; and it encouraged local governments and enterprises
to boost coal storage capacity and emergency coal stockpiles.
NDRC on Sept. 29 also issued a notice to call for railway companies
and local authorities to strengthen coal transportation in key areas
including the northwest and northeast regions, prioritizing transportation
for thermal coal, especially for coal under medium and long-term
contracts and for power plants with inventory below seven days.
China’s total installed power generation capacity is set to rise by
around 200 GW year on year to reach about 2,400 GW this winter, of
which at least 1,200 GW can be used to meet peak demand, NDRC said,
adding that effective peak load can be further increased by more than
60 GW in winter.
NDRC said it was confident and capable of ensuring power supply
this winter.
It would ensure maximum power generation during the winter
heating season, accelerate emergency backup and peak shaving
resource construction, and establish channels for dedicated coal and
gas supply for winter.
NDRC said would it also work towards passing through energy
costs to end-users, allow a floating tariff mechanism for coal power,
10
LNG DAILY SEPTEMBER 30, 2021
and introduce power trading, while ensuring that power rationing
ensures supply to households and essential sectors.
—Staff
Bangladesh to start up third LNG terminal
in 2025-2026
■■The new terminal will double the country’s import capacity
■■Third long-term offtake contract also on the table
Bangladesh is eyeing LNG imports from a third terminal as early as
from the middle of this decade, a government official said in a pre-
recorded video address ahead of the 10th LNG Producer-Consumer
Conference hosted by Japan on Oct. 5.
Nasrul Hamid, minister of state for power, energy and mineral
resources said, “The terminal with 1,000 MMcf/d of regasification
capacity will come into operation during 2025-2026.”
The facility to be built in Matarbari in the Cox’s Bazar district of
southern Bangladesh will be the country’s first land-based terminal.
Bangladesh has been importing LNG through two floating
regasification and storage units, each capable of regasifying up to 500
MMcf/d of LNG off the island of Moheshkhali in the Bay of Bengal.
“We also have plans to sign a third long-term LNG supply contract
to meet increasing gas demand,” Hamid said.
The South Asian country has started sourcing LNG imports both
from term offtake and also spot purchases since 2018, importing
almost 12 million mt so far, he added.
It has sought to expand its domestic production though this still
falls short of fulfilling its fast-expanding natural gas demand, which is
expected to reach 4,622 MMcf/d by 2030, according to the country’s
2017 gas sector master plan.
Its power generation capacity is separately projected to hit 60 GW
by 2041, requiring 3,150 MMcf/d of natural gas, Hamid said, citing
Bangladesh’s power sector master plan.
The government of Bangladesh has recently reversed an earlier decision
to halt spot LNG imports as prices for the commodity soared to $15/MMBtu
and beyond from August, S&P Global Platts reported on Sept. 20.
It has instructed state-owned Petrobangla to take steps to resume
spot LNG imports this month even though prices have already
surpassed $20/MMBtu during the week starting Sept. 20.
Platts JKM price for Asia spot LNG was assessed at $31.655/MMBtu
on Sept. 30.
—Hwee Hwee Tan
APPEC: BHP explores LNG, biofuels,
collaborates to boost greener shipping
■■LNG not just a transition fuel but vital to reach 2050 target
■■BHP to launch RFI for steady-state supply of biodiesel into Singapore
■■Industry collaboration key for rapid energy transition
Global resources company BHP is tapping LNG’s and biodiesel’s
potential as a marine fuel choice to advance sustainable shipping as
the maritime industry explores a gamut of fuel options to meet its
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
emissions cuts targets.
After thousands of years to evolve from wind to coal, and a
hundred years to evolve from coal to oil, the shipping industry faces
the most rapid transition it has to make.
“There is no better time to be able to take action, given the
decarbonization challenge, the existential challenge that we have
ahead of us,” Rashpal Bhatti, vice president maritime and supply chain
excellence, BHP said at the 37th Asia Pacific Petroleum Conference, or
APPEC 2021, organized by S&P Global Platts from Sept. 27-29.
BHP will target net zero by 2050 for all shipping of its products,
subject to the widespread availability of carbon neutral solutions
including low/zero emission technology on board suitable ships and
low/zero emission marine fuels, Bhatti said.
Both the International Maritime Organization and the European
Union have set shipping emission reduction goals.
“We as an industry, as a public-private partnership have to deliver
and allow regulation to work side by side with the changes that we
make as an industry. And BHP is taking that approach,” Bhatti said.
As part of its decarbonization thrust, BHP recently released its
Climate Transition Action Plan that outlines the company’s updated
approach to reducing GHG emissions and managing climate risks
across its global value chain.
BHP is supporting the Global Maritime Forum’s Call to Action to fully
decarbonize all shipping by 2050 and is a founding member of the
Maritime Decarbonization Center in Singapore.
The center will support trials of new fuels and technologies. It will
also include facilities for corporate labs, research facilities and house
research offices and space for maritime tech start-ups.
Sanguine about LNG, biodiesel
“Many people talk to me about transitionary fuels but how do we
know that a fuel is transitionary? I don’t think we do [know],” Bhatti said.
According to Bhatti, LNG is not a transitionary fuel and will form
part of the heterogenous bunker fuel mix that is going to get the
maritime industry to 2050.
“That [LNG] is a fuel that is going to be here for a while because it
is the only fuel here today that gives us a 30% reduction in carbon, a
NOx and Sox reduction that is significant, is economically viable and
the infrastructure is available to make happen what has not happened
before, which is to deliver abatement at a cost that is equivalent of or
less than the traditional fuel,” Bhatti said.
“That is is very important because there is far too much of the
market today that is still with the mindset that LNG vessels and LNG
fuel together-the total cost of ownership of those means a greater
cost outcome than the conventional and traditional method of VLSFO,”
Bhatti said. “That is not the case.”
As far as LNG bunkering was concerned, BHP last year said it had
awarded its first LNG supply agreement for five LNG-fueled
Newcastlemax bulk carriers, to transport iron ore between Western
Australia and China from 2022.
Shell was awarded the contract to fuel the vessels, which BHP will
charter from Eastern Pacific Shipping for five-year terms, it said then.
“This contract is expected to form up to 10% of forecasted Asian
LNG bunker demand in FY2023,” BHP Chief Commercial Officer Vandita
11
LNG DAILY SEPTEMBER 30, 2021
Pant, said in a statement then.
“Assuming that the results are positive, we will forge ahead with
our strategy of either ordering more LNG-fueled vessels or other fuel
types at that time that will allow for more abatement at a lower cost,”
Bhatti said, adding that these vessels will meet existing EEXI and CII
requirements, and optimize voyage operations.
Biodiesel is another “here and now fuel” that is very pertinent
because it is a “drop-in” fuel, Bhatti said.
In April, BHP said that it, along with, German shipping company
Oldendorff Carriers, advanced biofuels pioneer GoodFuels, and with
the support of the Maritime and Port Authority of Singapore conducted
the first marine biofuel trial involving an ocean-going vessel bunkered
in Singapore on April 4.
As part of the trial, the 2020-built 81,290 Dwt dry bulk carrier Kira
Oldendorff was refueled with “drop-in” advanced biofuel blended with
conventional fossil fuels.
The technical results of that experiment were excellent in engine
usage, maintenance, and the results from the captain and chief
engineer were very positive, Bhatti said, noting that an approximate
82% CO2-e well-to-wake reduction was achieved during the trial.
“We’re launching an RFI [request for information] in the next 2-3
months for steady-state supply of biodiesel into Singapore,” Bhatti said.
First mover advantage, collaboration
“Many of our competitors and other members of the ecosystem
have followed suit and ordered LNG vessels and today if you tried to
get an LNG vessel slot in one of the shipyards, it is actually very
difficult and the pricing has gone up significantly,” Bhatti said.
“And that tells you something. It tells you that the first mover
advantage has its benefits,” Bhatti said.
However, the bold steps required to make this happen need to be
very analytical and business proven aspects that go through the
organization for a successful transition, Bhatti cautioned.
He also noted that collaboration with various industry stakeholders
including traditional and new fuel suppliers, and shipping partners was
key to achieve the net zero ambition.
A cross-industry ecosystem was also critical to developing
sustainable cost and scale. For a rapid energy transition, “you have to
work with the ecosystem and deliver outcomes that haven’t been
delivered,” Bhatti said.
—Surabhi Sahu
REX emissions initiative targets carbon
neutral gas pipeline transportation capacity
■■Tallgrass joins Project Canary list of energy clients
■■Skeptics of industry messaging around GHG remain
Tallgrass Energy’s Rockies Express Pipeline is seeking to designate a
portion of its 4.4 Bcf/d of bidirectional capacity to carry what it
describes as carbon neutral gas, the operator said Sept. 28 as it
launched a certification initiative with Colorado-based Project Canary.
Gas and LNG producers, and now pipeline companies, are
increasingly looking for ways to show their commitment to reducing
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
GHG emissions, or at least quantify those emissions, amid the global
energy transition to cleaner burning fuels.
Project Canary has arrangements with over 20 upstream and
midstream companies related to its emissions monitoring and
certification technology. In a statement, Tallgrass said its arrangement
will allow REX to be the first pipeline to implement real-time emissions
detection and monitoring across all of its compressor stations.
In addition to detection and monitoring, the certification standards
will be focused on environmental stewardship and operational
excellence. The effort will begin during the fourth quarter of this year
and be completed by mid-2022.
According to Tallgrass, REX, which connects markets in the US
Midwest with key producing basins in the Rockies and Appalachia, will
be the first pipeline to differentiate carbon neutral transportation
capacity for its customers across its footprint. REX will dedicate specific
capacity to moving certified responsibly sourced gas, Tallgrass said.
While North American fossil fuel interests are increasingly being
pushed by customers to verify that their supplies are produced
responsibly and being transported via low emissions pipeline systems,
not everyone in the industry is convinced that all the initiatives being
announced can be achieved. What constitutes a carbon neutral supply
of gas or LNG cargo has raised questions.
“I don’t know what a carbon neutral shipment of energy is,”
Tellurian Executive Chairman Charif Souki said during a Center for
Strategic and International Studies event in Washington on Sept. 28.
“But what I do know is LNG contains carbon. So, it depends on how you
define the words ‘carbon neutral.’”
The developer of the proposed Driftwood LNG export facility, which
will transport feedgas to the facility via pipeline from Louisiana’s
Haynesville shale, is unsure that becoming truly carbon neutral is
feasible, at least for LNG producers.
“If you simply mean offsetting your emissions, I’m all for it,” Souki
said. “That means plant trees or do carbon sequestration.”
He added, “When there is confusion, there is opportunity for abuse.
You have to codify all this. We will offset our emissions. I don’t know
that we will ever be carbon neutral.”
—Harry Weber
Construction underway at Greek 877 MW
gas-fired Komotini CCGT for 2024 start
■■Eur375 million project required for early lignite exit
■■Siemens to supply turbine with 64% efficiency (HHV)
■■Project in northeast Greece by GEK Terna, Motor Oil
Construction has started on a new 877 MW gas-fired power plant at
Komotini in northeast Greece with Siemens Energy to supply an 64%
efficient turbine, the engineering firm said Sept. 30.
Project company Thermoilektriki Komotinis, a joint venture by GEK
Terna and Motor Oil, is investing some Eur375 million ($435 million) in
the project set to start operations in mid-2024, Siemens said.
“We’re excited that our technology will play a critical role in Greece’s
strategic journey of shifting from coal/lignite power plants to gas-fired
power generation,” Siemens Energy EVP Generation Karim Amin said,
12
LNG DAILY SEPTEMBER 30, 2021
adding that its HL gas turbine has a 64% efficiency rating (HHV).
Gas-fired generation covered 43% of Greek power in the first eight
months of 2021 compared to just 11% for lignite.
Annual Greek gas demand was around 5 Bcm in 2019, but
consumption is set to rise to some 7 Bcm/year later this decade due to
the phase-out of lignite generation by 2024.
The country sources its gas via pipeline from Russia, augmented by
LNG supplies into the Revithoussa import terminal.
A second LNG terminal at Alexandroupolis, some 20 miles from
Komotini near the Turkish border, is approaching a final investment
decision before year-end.
—Andreas Franke
Sempra cuts 2021 earnings outlook on
SoCalGas settlement over Aliso Canyon leak
■■2015 disaster disrupted supplies in US West Coast
■■Infrastructure unit stake sale nears closing
■■Full-year 2021 EPS guidance cut to $3.83-$4.43 from $7.41-$8.01
Sempra cut its earnings outlook after its Southern California Gas utility
agreed to resolve substantially all remaining civil litigation tied to the
2015 massive leak at its Aliso Canyon storage facility, a key conduit in
the supply of gas to the US West Coast.
The unit will take a $1.1 billion after-tax charge, Sempra said in a
statement Sept. 27, three days before the end of the third quarter.
The company also said it was preparing to close an investment by
private equity firm KKR in a unit that contains Sempra’s LNG and
related non-utility infrastructure.
The leak forced the storage facility near Los Angeles offline and
prevented the utility from replenishing its inventory to bolster the
power generation fuel supply serving the Southern California markets
for almost two years.
In both the peak cooling and heating season, and at times when
the utility asked consumers to conserve their gas use, SoCalGas had to
rely largely on its other storage fields, pushing prices higher amid fears
of fuel shortages. These shortage concerns also placed a significant
amount of importance on SoCalGas’ pipeline grid to provide sufficient
and consistent volumes. However, regular maintenance activities
along the pipeline system limited the amount of gas able to flow onto
SoCalGas’ grid, further reducing the overall availability of supply.
Anytime there were other infrastructure issues or maintenance, the
impact was greater because SoCalGas did not have sufficient storage
to help backfill any pipeline capacity cuts.
Tens of thousands of residents who were driven from their homes
or otherwise affected by the methane emissions in the air sued for
damages.
In resolving substantially all remaining litigation, the first
agreement is subject to obtaining roughly 97% participation among
approximately 36,000 individual plaintiffs and court approval. The
second and third agreements involve settlement with a class
estimated to include at least 23,000 properties and the dismissal of
the named plaintiffs in a putative business class action, both of which
are subject to court approval, SoCalGas said in its own statement.
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Settlement costs will not be borne by ratepayers.
Net after-tax cash outflows for SoCalGas due to the disaster are
expected to ultimately be up to approximately $895 million, after
taking into consideration insurance and other adjustments, according
to Sempra.
The parent company said it was cutting its full-year 2021 earnings
per share guidance to $3.83-$4.43, from previous expectations of
$7.41-$8.01. Sempra reaffirmed its full-year 2022 earnings per share
guidance of $8.10-$8.70.
Infrastructure deal
The KKR deal, announced in April, called for the firm to pay $3.37
billion in cash to buy a 20% stake in a new infrastructure unit that
includes Sempra’s North American LNG portfolio. In its statement Sept.
27, Sempra said that deal was expected to close Oct. 1.
Amid a challenging environment for adding new liquefaction
capacity in North America, especially in the US where banks or
investment partners have traditionally been relied upon for the billions
of dollars in startup capital, developers are increasingly looking for
creative ways to pay for construction.
Sempra has previously further delayed a final investment decision
on its proposed Port Arthur LNG project in Texas, while setting as one
of its priorities commercializing an expansion at its existing Cameron
LNG facility in Louisiana.
The new infrastructure unit also includes Sempra’s almost 100%
ownership stake in Mexican affiliate IEnova.
—Harry Weber, Jack Winters
JAPAN DATA: August fuel oil sales surge 88%
on year as utilities stockpile
■■Some utilities moved to fill fuel oil tanks in summer
■■Gasoline, jet fuel sales down amid pandemic restrictions
Japan’s fuel oil sales surged 87.8% on the year to 125,817 b/d in August,
preliminary data from the Ministry of Economy, Trade and Industry
showed Sept. 30, as some local power utilities moved to secure fuel oil
for the winter.
The August fuel oil sales, however, were down 9.3% from 138,712
b/d in July, according to METI data. The July fuel oil sales were up 47%
on the year as the country’s summer power demand picked up due to
heat wave.
The increased fuel oil sales come as some Japanese power utilities
have moved to secure fuel oil domestically amid rising spot LNG prices,
with some having filled their tanks in the summer, according to a
source with a Japanese refiner.
The country’s total oil product sales, however, dipped 0.4% on the
year to 2.46 million b/d in August, marking the first year-on-year
decrease in six months due mainly to reduced gasoline and jet fuel sales.
The August transport fuels demand took a hit during the summer
holiday season amid rising COVID-19 cases and emergency restrictions
across key cities in Japan.
The August gasoline sales rose 2.2% from July but fell 6.6% on the
year to 832,213 b/d, the lowest for the month since 1989, according to
13
LNG DAILY SEPTEMBER 30, 2021

METI data. Jet fuel sales also rose 5.1% on the month but dropped of financing and investment across the value chain,” Sentyurin said.
11.6% on the year to 65,650 b/d in August, the lowest for the month “Amidst these challenges, cooperation and dialogue amongst gas
since 1992. industry players — particularly between producers and consumers — is
Japan’s Sept. 28 decision to lift all of the COVID-19 state of crucial for promoting natural gas, facilitating investment, reducing costs,
emergency and priority measures at the end of the month would and optimizing operations across the entire gas value chain,” he said.
support the country’s ailing gasoline demand in October but market The recent surge in global gas prices, the GECF said, validates the
sources remained cautious about the speed of recovery. 18-member forum’s “long-held position on a balanced approach to the
Japan decided to lift all of its state of emergency on 19 prefectures energy transition.”
and its priority measures on eight prefectures on Sept. 30 following a “Furthermore, higher spot prices risk reducing the competitiveness
significant drop in new infections. This will be the first time that Japan of natural gas against coal and may threaten gas’s market share,
will not be under any of COVID-19 state of emergency and priority particularly in the power sector,” it said.
measures since early April.
Price rises
JAPANESE PRODUCT SALES IN AUGUST (b/d) European spot gas prices have surged to record highs in recent
Aug-21 Aug-20 Change (%) Jul-21 Change (%)
Gasoline 832,213 891,021 -6.6 814,562 2.2 weeks, building on the rally since the start of 2021, on winter supply
Naphtha 699,458 696,671 0.4 643,773 8.6 concerns.
Jet Fuel 65,650 74,265 -11.6 62,470 5.1
Kerosene 86,038 85,610 0.5 80,432 7.0 S&P Global Platts assessed the day-ahead TTF contract on Sept.
Gasoil 517,912 526,869 -1.7 542,030 -4.4 29 at Eur80.83/MWh ($27.52/MMBtu), an all-time high.
Fuel Oil A 136,681 132,443 3.2 132,588 3.1
Fuel Oil B, C 125,817 66,995 87.8 138,712 -9.3 Asian spot LNG prices also continue to rise, with the JKM
Total 2,463,769 2,473,664 -0.4 2,414,567 2.0 benchmark hitting a new record high on Sept. 30 of $34.47/MMBtu.
On Sept. 29, the GECF also said that long-term, oil-indexed gas supply
JAPANESE PRODUCT SALES IN JANUARY-AUGUST (b/d) contracts provide buyers with protection against gas price volatility.
Jan-Aug 2021 Jan-Aug 2020 chg on year (%)
Gasoline 770,559 769,077 0.2
The GECF said members continued to back the “fundamental” role
Naphtha 705,524 679,589 3.8 of long-term contracts and gas pricing based on oil and oil product
Jet Fuel 53,413 58,102 -8.1 indexation.
Kerosene 225,617 229,035 -1.5
Gasoil 542,988 538,606 0.8 “From the perspective of gas suppliers, the 18-member coalition —
Fuel Oil A 169,241 170,452 -0.7 together representing the largest share of proven reserves,
Fuel Oil B, C 129,158 104,159 24.0
Total 2,596,499 2,549,349 1.8 production, and trade of gas in the world — maintains adherence to
Source: Ministry of Economy, Trade and Industry the spirit of 2019 Malabo Declaration,” the GECF said.
—Takeo Kumagai “The declaration unreservedly supports the fundamental role of
long-term gas contracts as well as the gas pricing based on oil/oil
products indexation, to ensure stable investments in the development
GECF warns of risk to gas competitiveness of natural gas resources,” it said.
amid high spot prices That principle, it said, provided a “solid base” for gas buyers and
■■High prices could threaten gas market share provides protection against price volatility.
■■GECF calls for producer, consumer cooperation —Stuart Elliott
■■Gas industry future being guided by ‘emotions’

Platts LNG Bunker Weekly Commentary

High spot gas prices could lead to a loss of competitiveness for gas
versus coal and threaten the market share of gas, especially in the
power sector, the Gas Exporting Countries Forum said Sept. 30.
The GECF — whose members include gas heavyweights Russia,
Qatar and Iran — came into being in 2001 and holds around 71% of the
world’s proven gas reserves. It has 11 full members and seven observer
country members.
Following its annual industry workshop held virtually on Sept. 29,
the GECF said it was important for investments to continue to be made
in the gas sector despite what it described as “unfavorable” policies
toward fossil fuels.
“There is no doubt that over the past year, natural gas proved its
Asia Pacific
■■The Singapore LNG bunker fuel price was assessed up $7.985/
MMBtu week on week at $36.070/MMBtu on Sept. 30, for the
November delivery month, with a $1.600/MMBtu premium to the
JKM. The JKM for November delivery was assessed at $34.470/
MMBtu on Sept. 30, as prices reached a record high amid growing
short-covering demand in Asia and high volatility in European
gas prices. Prices were supported by power shortages in China
and greater buying interest following lower winter temperature
forecasts for China and South Korea.
■■Four Japanese companies — Itochu Enex, Kyushu Electric Power

resilience and flexibility to deal with market fluctuations,” GECF Company, Saibu Gas and NYK Line — have inked an agreement for
Secretary General Yury Sentyurin said. joint discussions on the commercialization of a new business to
“However, the future of the industry is being guided by emotions supply LNG bunker fuel to ships in the Setouchi and Kyushu areas
and unfavorable energy policies towards fossil fuels, resulting in a lack of western Japan, a joint statement said Sept. 29. LNG fuel as a

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 14
LNG DAILY SEPTEMBER 30, 2021
marine fuel is expected to be a bridging solution to next-generation
zero-emission fuels such as hydrogen and ammonia. Therefore, the
parties have decided to examine the commercialization of an LNG
bunkering business, including marketing activities, to consumers
such as Kyushu Electric Power Company for its LNG-fueled coal
carriers, which are scheduled to be delivered in fiscal 2023, as well
as the construction and owning of LNG vessels required for ship-to-
ship supply.
■■AET Tanker Holdings, a part of Malaysia’s MISC Group, is upbeat
about LNG’s prospects as a viable fuel solution to tackle maritime
decarbonization as international shipping’s environmental
emissions come under the scanner. “AET sees LNG as the most
viable fuel solution available today, and possibly with technology
advances, it will be part of the fuel solutions longer-term, well past
2030,” Rajalingam Subramaniam, president and CEO, AET, said in
an interview during the 37th Asia Pacific Petroleum Conference,
organized by S&P Global Platts from Sept. 27-29. Over the past
four years, AET has made strategic investments of $2 billion in
new assets, of which about $1 billion was invested in LNG dual-fuel
assets across its vessel segments. AET’s investments in LNG dual-
fuel solutions underscores its commitment to reduce the carbon
footprint of shipping using the best fuel solution immediately
available in the market with the existing and growing infrastructure.
Atlantic
■■The Rotterdam LNG bunker fuel price was assessed at Eur92.400/
MWh on Sept. 29, holding a Eur 5.887/MWh premium to Eur 86.513/
MWh for delivered cargoes into Northwest Europe. S&P Global Platts
assessed the LNG price at $29.477/MMBtu for cargoes delivered into
Northwest Europe on Sept. 29.
■■Bullish sentiment in the European LNG market was driven by strong
gains in downstream Eurogas markets. Colder weather and lower
Russian pipeline volumes supported European gas prices. European
gas inventories, currently at a 5-year low, have sparked uncertainty
over Europe’s ability to meet demand, especially if a colder winter
grips the continent.
■■Finnish energy company Gasum completed its first LNG delivery
and first LNG bunker fuel operation in the Port of Le Havre, France,
on Sept. 24. The newly built ship is bound to operate among the
fragile environments of the North Pole and Antarctica waters. The
ship reached the geographic North Pole for the first time on Sept. 6,
fueled entirely by natural gas.
■■In the USA, the first Renewable LNG bunkering took place in
Jacksonville, Florida. The RLNG was made by the decomposition
of organic waste and was used to fuel Tote’s Isla Bella. The use of
RLNG as a marine fuel is environmentally superior to LNG, which
already reduces emissions by 25% over ultra-low sulfur diesel.
■■Record high European LNG prices present a dilemma for operators
of duel-fueled vessels. Platts assessed the 1% LSFO NWE price at
$503.25/mt on Sept. 29. This is a $712.07/mt discount to the Platts
Rotterdam LNG bunker oil equivalent, incentivizing duel-powered
vessels to switch from LNG bunkers amid recent high prices.
■■The future of LNG bunkers was discussed in OPEC’s World Oil
Outlook, released Sept. 28. According to the report, nearly 10% of
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
orders for new-build ships are for those to be equipped with LNG
engines. However, the future remains uncertain amid calls for
hydrogen and ammonia powered vessels to be prioritized due to
their lower carbon footprint. This has led to orders for some LNG
powered vessels to be canceled, OPEC reported.
—Christel Goh, Zack Smith
HYDROGEN
ETC maps pathway to 1.5 C ahead of UN
climate summit as existing pledges fall short
■■Sees cheap, feasible actions by 2030 to cut CO2
■■Identifies20-23 GtCO2e of emissions reductions
■■Targets include methane, coal, electrification
The Energy Transitions Commission has set out a “technically feasible”
pathway to limiting global warming to 1.5 C, warning that current
national commitments fall well short of giving even a 50% chance of
meeting this target.
The measures focus on methane emissions reductions, ending
coal-fired power generation, accelerating road transport electrification,
decarbonizing heavy transport, industry and heating, and halting
reforestation and starting wide-spread reforestation, the ETC said in a
report Sept. 30.
“A 1.5 C pathway is not yet out of reach, but we are running out of
time to make it attainable,” the report said.
“There are technically feasible and reasonably cost-effective actions
which would give the world a 50% chance of limiting global warming to
1.5 C while delivering a 90% chance of limiting warming to 2 C.”
The report, Keeping 1.5 C Alive: Closing the Gap in the 2020s,
comes just weeks before the UN COP26 climate summit in Glasgow,
which the ETC hopes will catalyze global action this decade.
The ETC said current total greenhouse gas emissions are around
55 gigatons of CO2 equivalent (GtCO2e), which would continue to rise
under a business-as-usual scenario.
The ETC’s analysis finds that policies already in place could deliver
an emissions reduction to as low as 51 GtCO2e by 2030.
A further 2-5 GtCO2e of reductions are found in new nationally
determined contributions, to achieve a total 46-49 GtCO2e in 2030.
“However, reductions in total emissions to somewhere around
25-30 GtCO2e by 2030 would be needed to put the world on a pathway
which would limit global warming to 1.5 C,” the ETC said.
“The world, therefore, faces an ‘emissions gap’ of around 20-23
GtCO2e between what needs to be achieved and what is likely to be
committed to in NDCs agreed for COP26,” it warned.
Feasible actions
But almost all of this gap could be closed by “feasible actions” set
out in the report, the ETC said.
The ETC’s report focuses on actions it says are close to costless, or
entail costs easily met by developed countries. They could also be
progressed by a relatively small number of governments or companies
15
LNG DAILY SEPTEMBER 30, 2021
without need for comprehensive international agreement, it said.
Since the Paris agreement in 2015, significant technological
developments, improvements in scientific understanding and
reductions in costs have greatly increased the potential for rapid
emissions reductions.
ETC Chair Adair Turner said such recent developments were cause
for optimism.
“I am much more confident now that we can get to net zero by
2050, but worry that the pace of action will be too slow in the 2020s,”
he told S&P Global Platts in an interview Sept. 27. “That’s what this
report is about: how there’s a believable set of actions, which could
speed it up within this decade.”
“It’s absolutely technologically possible,” he added.
COP26 President-Designate Alok Sharma urged countries to submit
enhanced plans to address the areas set out in the report.
“To keep the goal of limiting global warming to 1.5 C alive, the world
must act now to halve emissions over the next decade,” Sharma said
in a statement Sept. 30.
“This report sets out a clear and credible action plan of achievable
emissions to get us on a 1.5 C pathway,” he said.
Electrification and hydrogen
In transport, technological progress and cost reduction in battery
electric vehicles make a more rapid electrification possible. The ETC
sees a move to passenger EVs as delivering savings versus internal
combustion engine vehicles within the next decade.
“Agreement at COP26 to ban all sales of ICE light-duty vehicles by
2035, combined with city-based action to restrict the use of existing
ICE vehicles beyond defined future dates, could lead to 20% of cars on
the road as electric and deliver around 2.0 GtCO2 reductions by 2030,
with an additional 0.6 Gt of savings possible from low or negative cost
action to improve heavy-duty truck efficiency,” the report said.
In heavy industry, heavy transport and buildings, low-carbon
hydrogen, CCS and electrification could decarbonize steel, cement,
chemicals, aviation and shipping.
Recent technological advances made net-zero emissions by 2050
feasible at a “trivial” cost, the ETC said, and suggested a 10% share of
shipping and aviation fuel coming from low-carbon sources could
deliver 0.2 GtCO2/year of additional abatement by 2030.
On hydrogen, Turner said demand-side incentives were now key to
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
accelerating uptake for the fuel.
“We are seeing signs that electrolyzer costs can and will come
down quite dramatically,” Turner told Platts.
“The biggest thing is actually supporting demand for green
hydrogen. So really getting the shipping industry to accelerate the
process, pushing the steel industry to start producing green steel from
green hydrogen.”
Methane emissions
The ETC said more attention should be given to methane
emissions, especially in the short term, given its higher potency as a
greenhouse gas.
Methane breaks down faster than CO2 in the atmosphere, but is
more potent than CO2 in the short term, with analysis from the
Intergovernmental Panel on Climate Change suggesting around 40% of
global warming so far has been caused by methane.
For this reason, the ETC puts a strong emphasis on reducing
methane emissions as a pathway to rapidly slowing global warming.
“Methane emissions could be cut by 40%, delivering about 130
million mt of reduction not already included in current NDCs,” it said.
This is mainly from fuel production, transport and use, pipeline
leaks and coal use.
The ETC urges an acceleration in phasing out global coal use,
calling for a halt to new coal plants and scrapping most of the 300 GW
of new coal capacity in the pipeline.
“Power sector CO2 emissions were over 13 gigatons in 2019, with
9.5 gigatons of this arising from coal-fired power,” it said, with a
further 40 million mt of methane emissions related to coal, equivalent
to 3 GtCO2e on a 20-year view.
Turner said voluntary carbon markets played an important but
ancillary role in the drive to decarbonization, particularly for categories
of carbon credits that reflected genuine reductions in CO2 emissions.
Platts assessed CORSIA-eligible carbon credits in the voluntary
carbon market at $7.10/mtCO2e on Sept. 29, up from below $1/mtCO2e
when the assessment started in January.
The ETC said the biggest uncertainties around the implementation
of its proposals were in nature-based solutions and retiring existing
coal assets, as these both relied on rich countries and companies
supporting accelerated action in lower-income economies.
—James Burgess, Frank Watson
16
LNG DAILY SEPTEMBER 30, 2021
McPhy to supply electrolyzer to hydrogen
power plant in French Guiana
■■16-MW electrolyzer to supply hydrogen from 2024
■■860 mt/year of green hydrogen production
French electrolyzer producer McPhy is to supply a 16-MW electrolysis
plant to produce renewable hydrogen at a power station in French
Guiana, the company said late Sept. 29.
The Centrale Electrique de l’Ouest Guyanais (CEOG) power plant will
combine solar photovoltaic electricity generation with electrolysis and
128 MWh of storage capacity, mainly in the form of hydrogen, McPhy
said in a statement.
The project aims to provide stable, clean electricity supply, it said,
with hydrogen production of 860 mt/year and avoiding 39,000 mt/year
SUBSCRIBER NOTES
Platts invites feedback on Energy Transition (ET) glossary
As part of its commitment to openness and transparency, S&P Global Platts
invites feedback on an energy transition glossary.
With ET fast becoming a global reality, the glossary is designed to explain some
of the terms used across energy transition topics, as employed by S&P Global
Platts in its pricing, news and analysis. Platts welcome feedback and
suggestions on these definitions.
Many of these terms are new and may evolve with time. Platts intends to
regularly update and assess the interpretation of the ET terms, to ensure that
they continue to reflect common usage, through continuous contact with
market participants.
Routine modifications to the glossary are not expected to materially impact the
areas where such ET terms are used. However, if at any time, a significant
change is warranted, Platts will undertake discussions with the market
stakeholders and changes will be made after providing a clear and reasonable
advance notice to allow analysis and comment.
The glossary can be viewed here http://plts.co/wkzB30rTiqR
Please send all comments, feedback, and questions to et@spglobal.com] and
pricegroup@spglobal.com, by Oct. 1, 2021.
For written comments, appreciate a clear indication if comments are not
intended for publication by Platts for public viewing.
Platts will consider all comments received and will make the comments, not
marked as confidential, available upon request.
Platts launches JKM balance-month ND derivative assessment Sept. 16
S&P Global Platts has launched a daily balance-month next-day (balmo-ND)
JKM derivative assessment against a time stamp of 4:30 pm Singapore time
(0830 GMT) on Sept. 16, 2021.
The assessment reflects the tradable value of the financially settled derivative
contract, which settles against the remaining yet-to-be published assessments
for the relevant JKM month, starting from the next day of publication.
For example, on Sept. 16, when the physical JKM pricing period is November,
the JKM balmo-ND price assessment will reflect the tradable value of JKM
November values from Sept. 17 to Oct. 15. On Sept. 17, the JKM balmo-ND price
assessment will roll to reflect the JKM November values from Sept. 20 to Oct.
15.
However, Sept. 18 is a Saturday, therefore the roll will take place on the next
business day, which is Monday, Sept. 20. Platts will consider bids, offers and
trade information of a minimum of 25 lots (one lot is equivalent to 10,000
MMBtu) for this assessment, matching the minimum lot size considered in its
other JKM derivatives assessments.
Platts first proposed to launch this assessment in a subscriber note published
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 17
of CO2 emissions compared with a fossil fuel power station.
The power plant is due to be commissioned in 2024.
The hydrogen will be stored in pressurized tanks, and recombined
with oxygen from the air in fuel cells to generate electricity, providing
power to 10,000 homes.
The fuel cells will be provided by Hydrogen de France.
Renewable hydrogen production costs are currently not
competitive with fossil fuels, but are falling rapidly.
S&P Global Platts assessed the cost of producing renewable
hydrogen via alkaline electrolysis in Europe at Eur9.66/kg ($11.21/kg)
Sept. 29 (Netherlands, including capex). PEM electrolysis production
was assessed at Eur11.61/kg, while blue hydrogen production by steam
methane reforming (including carbon, CCS and capex) was Eur5.46/kg.
—James Burgess
Aug. 5, 2021 (https://www.spglobal.com/platts/en/our-methodology/subscriber-
notes/080521-platts-proposes-to-launch-jkm-balance-month-nd-derivative-
assessment).
The balmo-ND assessment is published from the first publication day of the
new JKM pricing month and ends two business days before the end of the
pricing month. For example, the JKM balmo-ND price assessment reflecting the
tradable value of JKM November values will be available from Sept. 16 to Oct. 13.
The new assessment reflects market values prevailing at the close of Asian
markets and follows the Platts Singapore publication calendar. All prices are
published in US dollars per million British Thermal Units ($/MMBtu) to three
decimal places.
This assessment appears in LNG Daily, Platts LNG Alert page 820, Platts Natural
Gas Alert page 1031 and under the Platts price database code LJKMB00.
Please send all comments, 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. Platts will consider all comments
received and will make comments not marked as confidential available upon
request.
Platts launches Atlantic LNG physical eWindow
S&P Global Platts has launched the Platts Editorial Window, or eWindow,
communication tool for its Atlantic LNG physical Market on Close (MOC)
assessment process for its DES Northwest Europe (NWE), DES Mediterranean
(MED) and FOB Gulf Coast Marker (GCM) price assessments on Sept. 24, 2021.
Participants in the Platts MOC process are now able to submit bids, offers and
expressions of interest to trade for publication directly through the eWindow
communication tool or through an editor, who would then publish the
information using the software.
The instruments that are launched for the Platts Atlantic LNG are from the third
to the fifth half-month forward (H+3 to H+5) in dollars per MMBtu for the DES
NWE and DES MED assessments, and 30-60 days forward for FOB GCM.
Market participants can state their specific bid or offer delivery windows — for
example, 3-day or 5-day delivery or loading windows — within these
instruments.
The instruments will allow for a variety of different delivery or loading locations
to be used in bids and offers, such as: DES UK, DES Spain, etc.
For delivery locations that are not listed individually, market participants can
select “DES in TQC” and input the details directly the DES basis of the bid or
offer in the Terms, Quality & Comments (TQC) box.
The instruments will allow for a volume range to be expressed for bids and
offers, up to 0.3 TBtu.
LNG DAILY SEPTEMBER 30, 2021

If the bid or offer is in a volume range, then the instrument called Platts Atlantic Where Platts editors publish bids and offers on behalf of a company that
LNG (Qty Range) would be selected. The instruments will also allow for a variety submits data to an editor, counterparty credit settings are set to “open” for
of pricing basis. regular participants in the assessment process unless companies have notified
Market participants can also input directly other terms related to their bids or Platts in advance of any restrictions.
offers in the TQC box. If a counterparty submitting information through an editor has not already
The eWindow instruments will generate a different format for headlines of bids, notified Platts of any counterparty credit restrictions, they should notify Platts
offers and trades published on Platts LNG Alert and via other Platts services. at least one hour prior to the start of the MOC process if any counterparty credit
For example, a headline that currently appears as: filters need to be modified.
Atlantic LNG MOC: COMPANY Offers Oct TTF ICE Front Month Average +0.15 $/ Please send all feedback, comments and questions to
MMBTU DES Pricing 24-30 September. 2 Day Delivery Window: 11-12 October. lngeditorialteam@spglobal.com and pricegroup@spglobal.com.
Base Discharge Port: Buyer to advise during CN process. No later than 20 days For written comments, please provide a clear indication if comments are not
prior to the 2 Day Arrival Period, Buyer can nominate substitute Discharge Port intended for publication by Platts for public viewing.
in Mugardos, Rotterdam, Dragon, Isle of Grain, South Hook, Montoir, Dunkirk, Platts will consider all comments received and will make comments not marked
Zeebrugge, Bilbao, Huelva, Barcelona, Sagunto, FOS. GHV: 1000 to 1120 Btu/SCF. as confidential available upon request.
Contract Quantity 3.65 Tbtu +/-5%. Base ship: will be nominated upon
Platts proposes to solely reflect standard nomination deadlines in JKM MOC
completion of deal. No later than 15 days prior to the 1 Day Arrival Period, Seller
bids and offers
may nominate an Alternate LNG Ship subject to SSCS and terminal acceptance.
S&P Global Platts is proposing to consider for publication only bids and offers
Base Load Port: Freeport. Seller’s option to nominate an Alternative Load Port
that reflect its existing editorial guidelines on nomination deadlines for the JKM
no later than 15 days prior to the 2 day Arrival Period. Laytime 36 hours., will be
assessment in the Asia Pacific LNG Market on Close (MOC) price assessment
published as:
process from Dec. 16, 2021.
Platts Atlantic LNG DES NWE+MED H3-H5, COMPANY offers Oct11-Oct12 100%
Currently, Platts considers for publication bids and offers with varying
TTF Full Month Oct $0.15 for 3.65 Pricing 24-30 September. Base Discharge
nomination deadlines in the APAC LNG MOC process for the JKM assessment,
Port: buyer to provide at trade confirmation. No later than 20 days prior to the 2
and normalizes them to the standard.
Day Arrival Period, Buyer can nominate substitute Discharge Port in Mugardos,
The proposal to not publish bids and offers with nomination deadlines that
Rotterdam, Dragon, Isle of Grain, South Hook, Montoir, Dunkirk, Zeebrugge,
differ from Platts editorial guidelines would better streamline the price
Bilbao, Huelva, Barcelona, Sagunto, FOS. GHV: 1000 to 1120 Btu/SCF. Base ship:
assessment process and reflects the rapidly increased standardization in this
will be nominated upon completion of deal. No later than 15 days prior to the 1
area in recent years, according to Platts data analysis.
Day Arrival Period, Seller may nominate an Alternate LNG Ship subject to SSCS
Under Platts existing editorial guidelines, the delivery period reflected by bids
and terminal acceptance. Base Load Port: Freeport. Seller’s option to nominate
and offers should typically be three to five days long, with the buyer to narrow
an Alternative Load Port no later than 15 days prior to the 2 day Arrival Period.
to a one- or two-day delivery window 30 days before the first day of the traded
Laytime 36 hours.
delivery window.
TIMING: All bids and offers will still have to be submitted by 16.00.00.000
For transactions reported through the MOC process, buyers should nominate a
London time. Following any trade, market participants will have 60 seconds to
terminal within a delivery country at least 30 days before the first day of the
rebid or re-offer. No price changes are allowed from 16:28:00:000 to the close of
traded delivery window. Buyers retain the option to substitute delivery port
the MOC process at 16.30.00.999. A rebid or re-offer, following a trade, in last
within the same country up to 20 days before the first day of the traded delivery
120 seconds prior to the close of the MOC will trigger a 120-second extension
window, subject to ship shore compatibility study (SSCS).Platts would continue
from 16.30.01.000 to 16.32.00.999, in order to adequately test that rebid or
to publish bids and offers with varying delivery port nomination deadlines within
re-offer.
the same country, and these would be subject to normalization.
INCREMENTABILITY: Bids and offers can be improved by a maximum of $0.05/
Platts existing standard nomination deadline on loading port nomination states
MMBtu and a minimum of $0.01/MMBtu every 120 seconds. As per Platts
sellers have the option to nominate the loading port and may substitute loading
editorial guidelines, buyers or sellers can withdraw bids/offers at any time when
port up to 30 days prior to the first day of the traded delivery window subject to
communicating through eWindow, provided no prior interest to transact has
the Gross Heating Value (GHV) quality range reported in the trade.
been expressed by any potential counterparty. All bids and offers are firm from
For bids or offers submitted in a volume range, the specific volume should be
the moment they are submitted into eWindow to the moment they are traded,
declared by the seller 30 days prior to delivery, and this declaration deadline
the MOC process closes or the bid/offer is withdrawn from the system by the
should be stated in the offer or bid. Unless stated otherwise by the counterparty
trader or a Platts editor. Market participants can still send bids and offers
at the time of providing data for publication, the bids and offers provided for
directly to an LNG editor for publication via eWindow. In markets where Platts
publication in the APAC LNG MOC process should reflect the above standard.
eWindow is in operation, the eWindow clock will be used to determine the
On vessel nomination, sellers should nominate an LNG ship either 45 days prior
correct sequence of events when a bid or offer is amended, withdrawn, or
to the first day of the traded delivery window or state the base vessel in the
traded by an interested counterparty. Bids or offers submitted by phone, or any
offer for more prompt delivery windows under Platts current editorial
other medium, such as instant messaging software, shall be measured at the
guidelines. Sellers may substitute delivery vessel up to 30 days prior to the first
time the bid, offer or trade indication is actually transmitted through the
day of the traded delivery window, subject to SSCS.
eWindow system via the editor.
Platts is also proposing to continue to consider for publication, offers with
Guidelines for the publication of bids and offers in the MOC process are
delivery periods that fall within 30 days from the date of publication where
published in the LNG Timing and Increment Guidelines available here: https://
buyers should nominate the discharge location and delivery window at trade
www.spglobal.com/platts/en/our-methodology/methodology-specifications/lng/
confirmation. For bids with delivery periods that fall within 30 days from the
lng-timing-and-increment-guidelines.
date of publication, sellers should nominate the loading location and LNG
Full information relevant to these assessments can be found in the Global LNG
vessel, and declare specific cargo volume at trade confirmation.
specifications guide available here: https://www.spglobal.com/platts/en/our-
Furthermore, Platts is proposing to only consider for publication bids and offers
methodology/methodology-specifications/lng/liquefied-natural-gas-lng-
with nomination deadlines for delivery window and discharge port that align
assessments-and-netbacks-methodology.
with deadlines for load port, cargo volume and LNG vessel. Such nominations
Platts expects credit relationships that prevail inside its assessment
deadlines should fall on the same day — either 30 days prior to the final delivery
environment to fully reflect relationships in the markets as a whole. eWindow
window, or 30 days prior to the initial delivery window.
provides direct entry and management of credit filters which should mirror
Separately, Platts is proposing to amend the nomination deadline for buyers
those normally applied in the marketplaces.
option to substitute delivery port within the same country to up to 15 days

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 18
LNG DAILY SEPTEMBER 30, 2021
before the first day of the traded delivery window, subject to SSCS, in a
subscriber note published on Sept. 10 (https://www.spglobal.com/platts/en/our-
methodology/subscriber-notes/091021-platts-proposes-change-in-standard-
deadline-for-same-country-delivery-port-nominations-in-jkm-lng-moc).
Platts existing standard terms on nomination deadlines are as follows:
Specifications JKM LNG existing standard terms on nomination
deadlines
Delivery window Buyer to narrow to 1 or 2 days up to 30 days prior
to the first day of the traded delivery window
Discharge location Buyer to nominate discharge port up to 30 days
prior to the first day of the traded delivery
window. Substitution within the same country up
to 20 days prior to the first day of the traded
delivery window
Loading location Seller to nominate loading port up to 30 days
prior to the first day of the traded delivery
window
Quantity Seller to declare specific volume up to 30 days
prior to delivery for bids, offers with a volume
range
LNG Vessel Seller to nominate base vessel 45 days prior to
the first day of the traded delivery window; Seller
may substitute delivery vessel up to 30 days prior
to the first day of the traded delivery window
Please send all comments, feedback and questions to
LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Oct. 11, 2021.
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 19
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 will make comments not marked as confidential
available upon request.
Platts proposes change in standard deadline for same-country delivery port
nominations in JKM LNG MOC
S&P Global Platts is proposing to change the standard nomination deadline for
the substitution of a delivery port within the same country for cargoes reflected
in the JKM benchmark for the Asia Pacific LNG Market on Close (MOC) price
assessment process, with effect from Dec. 16, 2021.
Under this proposal, buyers have the option to substitute a delivery port within
the same country up to 15 days before the first day of the traded delivery
window, subject to ship shore compatibility study (SSCS). The existing standard
allows buyers to substitute a delivery port within the same country up to 20
days before the first day of the traded delivery window, subject to SSCS.
Platts would continue to publish bids, offers and trades with varying delivery
port nomination deadlines within the same country, and these would be subject
to normalization.
This proposal reflects data published during the MOC process, as well informal
market feedback which show a change in the standard nomination deadline for
same-country port substitutions. Please send all feedback, comments and
questions to platts_lng_moc@spglobal.com and pricegroup@spglobal.com by
Oct. 11, 2021.
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 will make comments not marked as confidential
available upon request.
LNG DAILY SEPTEMBER 30, 2021

HYDROGEN & CARBON

NORTH AMERICA HYDROGEN ASSESSMENTS, SEPTEMBER 29* VOLUNTARY CARBON CREDITS, SEPTEMBER 30
Excluding Capex Including Capex $/mtCO2e Change Eur/mtCO2e Change
Production Pathway $/kg Change $/kg Change Platts CEC 7.100 0.000 6.134 +0.039
Alberta (C$/kg) Note: The Platts CEC assessment reflects the value of CORSIA-eligible credits in the voluntary carbon
market, and is not a component of Platts hydrogen assessments.
SMR w/o CCS 0.5383 -0.0121 1.2768 -0.0086
Alkaline Electrolysis 2.5657 -1.0791 3.7853 -1.0734
PEM Electrolysis 2.9638 -1.2466 5.1489 -1.2363
UK HYDROGEN ASSESSMENTS, SEPTEMBER 30
Appalachia
Production Pathway GBP/kg Change GBP/KWh Change
SMR w/o CCS 0.7341 -0.0105 1.3295 -0.0105
ATR w CCS 4.7259 +0.2729 0.1418 +0.0082
Alkaline Electrolysis 2.7104 +0.0644 3.5897 +0.0643
ATR w CCS (inc. Capex & Carbon) 5.0451 +0.2729 0.1514 +0.0082
PEM Electrolysis 3.1309 +0.0744 4.7065 +0.0744
Alkaline Electrolysis 12.3022 +0.0870 0.3691 +0.0026
Gulf Coast Alkaline Electrolysis (inc. Capex) 12.9188 +0.0844 0.3876 +0.0025
SMR w/o CCS 0.8582 -0.0364 1.3623 -0.0364 PEM Electrolysis 14.2085 +0.1006 0.4263 +0.0030
Alkaline Electrolysis 2.5364 +0.0883 3.3688 +0.0883 PEM Electrolysis (inc. Capex) 15.3132 +0.0958 0.4594 +0.0028
PEM Electrolysis 2.9299 +0.1020 4.4213 +0.1020
Midcontinent
SMR w/o CCS 0.7887 -0.0256 1.3199 -0.0257 NETHERLANDS HYDROGEN ASSESSMENTS, SEPTEMBER 30
Alkaline Electrolysis 2.0477 -0.3483 2.9016 -0.3482
PEM Electrolysis 2.3654 -0.4023 3.8953 -0.4022 Production Pathway Eur/kg Change Eur/KWh Change
SMR w/o CCS 4.0890 +0.2556 0.1227 +0.0077
Northeast
SMR w/o CCS (inc. Capex) 4.5240 +0.2567 0.1357 +0.0077
SMR w/o CCS 0.7400 -0.0046 1.3746 -0.0047 SMR w/o CCS (inc. Carbon) 4.6382 +0.2461 0.1392 +0.0074
Alkaline Electrolysis 2.2373 -0.1131 3.1419 -0.1131
SMR w/o CCS (inc. Capex & Carbon) 5.0732 +0.2472 0.1522 +0.0074
PEM Electrolysis 2.5844 -0.1306 4.2052 -0.1306
SMR w CCS 5.0462 +0.3489 0.1514 +0.0105
Northern California SMR w CCS (inc. Capex) 5.7506 +0.3507 0.1725 +0.0105
SMR w/o CCS 1.0877 -0.0306 1.8180 -0.0306 SMR w CCS (inc. Carbon) 5.1012 +0.3480 0.1531 +0.0105
Alkaline Electrolysis 3.1383 +0.4014 4.1246 +0.4015 SMR w CCS (inc. Capex & Carbon) 5.8055 +0.3497 0.1742 +0.0105
PEM Electrolysis 3.6253 +0.4638 5.3923 +0.4637 Alkaline Electrolysis 10.1887 +1.2482 0.3057 +0.0375
Northwest Alkaline Electrolysis (inc. Capex) 10.9070 +1.2499 0.3272 +0.0375
SMR w/o CCS 0.8504 -0.0530 1.4330 -0.0530 PEM Electrolysis 11.7668 +1.4418 0.3530 +0.0432
Alkaline Electrolysis 3.0927 +0.0072 3.9888 +0.0072 PEM Electrolysis (inc. Capex) 13.0539 +1.4451 0.3917 +0.0434
PEM Electrolysis 3.5726 +0.0084 5.1781 +0.0083
Rockies
SMR w/o CCS 0.8274 -0.0330 1.3856 -0.0329 SMR w/o CCS COST COMPARISONS
Alkaline Electrolysis 3.0481 -0.1028 3.9147 -0.1028 ($/kg)
PEM Electrolysis 3.5211 -0.1187 5.0737 -0.1187 6
Southeast Japan SMR
SMR w/o CCS 0.8882 -0.0641 1.4078 -0.0642 w/o CCS
5 (inc. Capex)
Alkaline Electrolysis 3.0266 +0.0166 3.8812 +0.0166
PEM Electrolysis 3.4961 +0.0191 5.0274 +0.0191 Netherlands
Southern California 4
SMR w/o CCS
SMR w/o CCS 1.0950 -0.0236 1.7958 -0.0236 (inc. Capex
Alkaline Electrolysis 2.9926 +0.4902 3.9585 +0.4902 3 & Carbon)
PEM Electrolysis 3.4569 +0.5662 5.1875 +0.5662
USGC SMR
Upper Midwest 2 w/o CCS
SMR w/o CCS 0.8246 -0.0202 1.3930 -0.0202 (inc. Capex)
Alkaline Electrolysis 2.8309 +0.1909 3.7373 +0.1909
PEM Electrolysis 3.2701 +0.2205 4.8940 +0.2205 1
20-Aug 26-Aug 01-Sep 07-Sep 13-Sep 17-Sep 23-Sep 29-Sep
*Assessed previous day
Source: S&P Global Platts

JAPAN HYDROGEN ASSESSMENTS, SEPTEMBER 30

Excluding Capex Including Capex PEM ELECTROLYSIS COST COMPARISONS
Production Pathway Yen/kg Change Yen/kg Change ($/kg)
SMR w/o CCS 594.7474 +50.9433 679.3290 +51.4271 15
Alkaline Electrolysis 447.2525 +62.6803 586.9308 +63.4794
PEM Electrolysis 516.6486 +72.4066 766.9106 +73.8383
Japan
PEM
10
Netherlands
ASSESSMENT RATIONALE PEM
The S&P Global Platts hydrogen prices are daily valuations that incorporate the cost S. Calif.
of variable natural gas, electricity, and carbon inputs, where applicable. A second set 5 PEM
of valuations include fixed assumptions for capital and operating expenses. The
Platts hydrogen prices are not based on observed or reported market transactions.
Details on the Platts hydrogen methodology can be found at:
https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/ 0
20-Aug 26-Aug 01-Sep 07-Sep 13-Sep 17-Sep 23-Sep 29-Sep
energy-transition/hydrogen-methodology.
Source: S&P Global Platts

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