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Platts JKM™ (Japan Korea Marker) Gas Price Assessment: Natural Gas Price Assessments

What is the Japan Korea Marker (JKM™)?

Platts Japan Korea Marker (JKM™) is the LNG (Liquefied Natural Gas) benchmark price assessment for spot physical cargoes delivered ex-ship into Japan and South Korea. As these two countries take the largest share of LNG imports in the world, Platts JKM™ is thus a key reference in marking product value/market price from supply source to the destination market.

In the LNG market space, traditional patterns of trade are evolving fast; where cargoes once changed hands only through opaque bilateral deals, the market now exhibits open sell and buy tenders for multiple and single cargoes, brokered trades, cargoes sold in longer chains and speculative trading positions taken up by non-traditional players, adding to liquidity on the spot market.

The Platts JKM™ Price Assessment is available in these services.

How do we assess the JKM™ gas market?

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Platts JKM™ price assessment reflects the tradable value of LNG at the given delivery period, based on the most recent repeatable trades, bids and offers. In addition, only bids and offers that are raised or lowered in realistic increments are considered within the assessment.

Platts LNG assessments are market-on-close (MOC) prices prevailing at 16:30 Singapore time or 08:30 GMT. The current standard ship and cargo size is defined as 135,000-175,000 cubic meters.

During the Platts JKM™ price discovery process, we survey as broad a cross-section of the market as possible, including traders, producers, end-users and brokers. Market players are contacted by phone, instant-message or email on a daily basis.

Information pertaining to current shipping costs and market supply/demand fundamentals -- such as production maintenances, tender issues and weather data -- is also taken into consideration during the Platts JKM™ price assessment process.

We publish reported bids, offers and trades during our MOC assessment process every day.

Evolution of Platts JKM™ Price Assessment

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Platts was the first to launch daily LNG price assessments for cargoes trading in Asia, starting with Platts JKM™ in February 2009. As global supply and market participation grow, the uptick in liquidity of spot trading has seen the Platts JKM™ being increasingly used as a price reference for trades both in and outside Asia.

Spot trades generally represent around 20% of the LNG volumes traded yearly.

While the LNG market continues to be dominated by traditional 20 to 30-year long-term contracts, there is a marked movement towards shorter term and spot deals. Long-term contracts expose both buyers and sellers to market risks, as price fluctuations cannot be captured. Daily spot prices mitigate this risk by representing actual market value for the product bought and sold each day, making the inherent market volatility both visible and understandable.

New entrants into the LNG market are pushing for shorter term and spot deals, instead of the traditional long-term agreements. Therefore there is a need to establish a reliable, transparent and repeatable marker to reflect the fair and transactable value of the spot LNG market, a role the Platts JKM™ assessment serves.

With increasing non-associated gas production and shale gas development, the call to move away from oil-indexation, together with de-linking LNG prices from other commodities, becomes more prominent. As such, Platts JKM™ sees its presence continue to grow in the physical market. Alongside its gradual integration into physical contracts, Platts JKM™ has also been adopted in the financial markets, spearheaded by OTC derivatives trades in early 2011, as well as clearing by exchanges in 2012.

Natural Gas JKM™ Price Assessment Methodology


How do you access the daily JKM™ gas price?

The JKM™ natural gas market price assessment can be accessed in the following Platts services.

Market Price Data – Natural Gas

  • Access the latest, most accurate natural gas price data, including our end-of-day assessments, corrections, third-party data, and a rolling 45-day historical database
  • Receive our industry-standard benchmark assessments data in the most efficient and reliable way
  • Customize your data with historical data sets

Natural Gas Alert

  • Get a complete picture of the global natural gas market, delivered in real time
  • Access Platts' spot and forwards market assessments as soon as they become availablet
  • See detailed market commentary, news, and fundamental market data, delivered throughout the day

LNG Daily

  • Get a daily PDF with the JKM™ and other price assessments for the global LNG market
  • Read gas and LNG news, market commentary, analysis and futures prices, all in one place
  • Learn about developments in the global market, from new LNG supply projects to gas quality issues



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