Platts Launches World's First Daily LNG Price Points for India
Platts, the world's leading energy information provider, today announced it has begun publishing the first daily price points for liquefied natural gas (LNG) imported to India and exported from Australia and the Middle East, the world's largest LNG producing region.
Tweet-- Platts, the world's leading energy information provider, today announced it has begun publishing the first daily price points for liquefied natural gas (LNG) imported to India and exported from Australia and the Middle East, the world's largest LNG producing region. LNG "Net Forward" for West India will use freight rates and FOB Middle East to calculate the value for cargoes delivered into Hazira or Dahej, coming from the Arab Gulf.
"India is growing into a major player in the Asia-Pacific spot LNG market, with a huge appetite for imports of natural gas. There is a significant need for transparent pricing to reflect the true state of the market. India has the potential to become a major global price point for LNG, and this is a step towards that end", said Jonty Rushforth, Senior Editor, Asia LNG, Platts. "The LNG market is one of the most dynamic and fastest-growing markets in the world, evolving as new players enter the market and trading patterns shift."
Platts is now covering the largest LNG producing and consuming regions in the world, as well as the up-and-coming areas that will define the future development of the market. With the launch of Japan/Korea Marker (JKM) in February 2009, Platts became the first energy information provider to publish daily spot prices for LNG. Platts JKM is used by industry participants as a proxy for Asian LNG prices and is also considered to be a leading indicator of global LNG demand growth.
In addition to the three new LNG price points, Platts also began publishing this week a daily assessment of the spot charter rate for LNG vessels to help underpin freight calculations. This assessment is known as the Asia-Pacific Day Rate or APDR.
The price references are the result of nearly a year of consultation with energy ministry officials, producers, consumers, trading entities, and transportation and other petroleum industry experts.
"Countries in North America, South America and Europe often compete with Asian countries for LNG supplies, so the new price data should help producers, consumers and traders of natural gas and LNG throughout the world," said Michael Rieke, managing editor of Platts' LNG Daily.
The new price points will be published in Platts LNG Daily, the first-ever daily independent news publication for the global LNG industry; Platts LNG TraderNet, a customizable interactive web-based market intelligence & information tool; as well as Natural Gas Alert and other Platts real-time information services.
The Platts LNG price assessments employ Platts' time-tested methodology that is based on the principle that price is a function of time, resulting in an end-of-trading-day daily price assessment.
Platts, which publishes more than 8,500 energy and metals prices daily, has been reporting on and assessing natural gas prices for decades. It currently maintains the world's longest-dated database of daily price history for the commodity.
For more information on LNG and natural gas, visit the Platts website.
Notes to Editor
About Platts: Platts, a division of The McGraw-Hill Companies (NYSE: MHP), is a leading global provider of energy and commodities information. With a century of business experience, Platts serves customers across more than 150 countries. An independent provider, Platts serves the oil, natural gas, electricity, emissions, nuclear power, coal, petrochemical, shipping, and metals markets from 17 offices worldwide. Platts' real-time news, pricing, analytical services and conferences help markets operate with transparency and efficiency. Traders, risk managers, analysts, and industry leaders depend upon Platts to help them make better trading and investment decisions. Additional information is available at http://www.platts.com.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.