Asian LNG price-index gains traction
Traders are in favour of liquefied natural gas (LNG) price assessments for Asian spot trading, according to energy broker Tullett Prebon, and moving away from prices linked to oil
Asia has no liquid natural gas markets to price spot LNG. And although most countries have signed long-term contracts linked to oil, traders want a price index that better reflects the cost of LNG to sell spot cargoes. Leading the way is Platts' Japan Korea Marker (JKM), a daily assessment of LNG delivered to Japan and South Korea as a proxy for all Asian prices. Based on the JKM price, CitiBank executed the first LNG swap with an international oil major earlier this year. A swap facility allows commodity traders to offset some of the risk from market price movements. “There’s at least one cargo a month being sold on JKM indexation,” Tullett Prebon LNG manager Melissa Lindsay told the LNG Gl
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
