Latest assessment reflects burgeoning LNG demand and spot trade in the region
SINGAPORE, Oct. 23, 2023 /PRNewswire/ -- Platts, part of S&P Global Commodity Insights, the leading independent provider of information, analysis, data and benchmark prices for commodities, energy and energy transition markets, has announced the launch of new daily Southeast Asia LNG (SEAM) cargo assessments, the first for the region, to bring price transparency to this fast-developing market. The assessments are published as a differential to the Platts JKM, as well as on an outright basis.
Ciaran Roe, Global Director for LNG at S&P Global Commodity Insights said, "Southeast Asia is expected to become a major hub for the consumption of LNG, with its changing energy mix and increasing power demand. Gas and power market liberalization continues apace as seen in developments in pricing policies and third-party access of LNG terminal infrastructure for these markets.
The launch of Platts Southeast Asia LNG (SEAM) assessment marks a further milestone in the rapid commoditization of the LNG market in Southeast Asia, where contracts are already linked to JKM LNG prices. The development of a Southeast Asia LNG cargo price reference will also foster the advancement of related markets like small-scale LNG and LNG bunkering in the region."
"The integrity of the methodology underpinning our assessment processes allows Platts price benchmarks like JKM and WIM to be relied upon by the world's most important energy markets," added Roe.
Southeast Asia is poised to be a key growth driver for global LNG demand, with imports into the region expected to increase significantly and play a crucial role in the region's decarbonization efforts.
The recent start-up of receiving terminals in new import markets Vietnam and Philippines will fuel growing economies, while Thailand and Singapore have shown strong import increases in 2023. Traditional exporters Malaysia and Indonesia are also expected to import more LNG in future.
According to S&P Global Commodity Insights, Southeast Asia LNG imports are expected to rise to 31 million metric tons (mt) in 2025, and to 56 million mt in 2030. This growth will be aided by an expansion in import capacity, with the number of regasification terminals expected to increase from 14 in 2023 to 24 by 2030.
The Southeast Asia LNG (SEAM) cargo assessments reflect the trade-able value of cargoes delivered to markets in Thailand, Singapore, Vietnam or Philippines, with volume of 3.4 TBtu and GHV 1000-1150 Btu/scf.
For more details, see subscriber note.
LNG DES Southeast Asia Marker (SEAM) $/MMBtu LNJSA00
LNG DES JKM vs Southeast Asia Marker (SEAM) $/MMBtu LNJSB00
LNG DES Southeast Asia Marker 1 Half-Month $/MMBtu LNJSA10
LNG DES Southeast Asia Marker 2 Half-Month $/MMBtu LNJSA20
LNG DES Southeast Asia Marker 3 Half-Month $/MMBtu LNJSA30
LNG DES Southeast Asia Marker 4 Half-Month $/MMBtu LNJSA40
The assessments may be found in S&P Global Commodity Insights products and services, including: Platts LNG Daily, Platts LNG and Natural Gas Alert pages, Platts Dimensions Pro, and in the Platts price database.
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SOURCE S&P Global Commodity Insights