Activity in the Asian LNG Platts Market on Close assessment process for the March pricing period slowed month over month as the peak winter demand season ended, according to an analysis of S&P Global Energy data.

The total number of bids, offers and trades reported during the physical MOC reached 499 for the March pricing period (Jan. 16-Feb. 15), down 2.54% month over month but up 66.89% year over year, pointing to structurally higher liquidity in the spot market.

BP, Glencore, PetroChina, QatarEnergy Trading, Shell, TotalEnergies, Unipec and Vitol reported 12 trades for March delivery into the Japan-Korea-Taiwan-China (JKTC) region, totaling about 780,000 mt of LNG.

Ten trades were indexed to the JKM balance-month next-day (balmo) contract, one to the JKM April contract and one to the TTF March contract. Balmo-linked trades cleared at parity or premiums, with cash differentials averaging 3.7 cents/MMBtu, reflecting firm prompt pricing amid a closed arbitrage environment.

The April-indexed trade cleared at 50 cents/MMBtu premium, while the TTF-linked trade was done at a $1.50/MMBtu discount.

About 84.2% of bids, offers and trades in the latest assessment cycle were linked to the JKM benchmark, up from 68.4% reported in the previous period, while 12.42% were on a fixed-price basis and 3.41% against the Dutch TTF index.

The APAC LNG Derivatives MOC saw 235 trades, down 22.82% month over month but up 114.1% year over year.

A total of 2,060 entries from 21 participants were reported, including 915 bids, 910 offers and 235 trades.

On the Intercontinental Exchange, JKM monthly futures traded 172,945 lots and balance-month contracts 9,604 lots, bringing total volume to 182,549 lots, equivalent to about 35.11 million mt of LNG, or roughly 553 cargoes.

Cold-driven Atlantic demand

JKM prices traded in the low-$10s to low-$12s/MMBtu range during the March 2026 delivery pricing period, down from the low-$13s to low-$17s/MMBtu range a year earlier, reflecting softer Asian demand and ample prompt supply. Prices briefly firmed in late January as a cold snap tightened balances in the Atlantic Basin, widening the negative JKM-TTF basis and reinforcing Europe’s premium over Asia.

Colder-than-normal weather disrupted upstream gas supply in the US, curbing LNG feedgas availability, while elevated domestic gas prices incentivized producers to prioritize domestic sales. The US Northeast also imported LNG to meet regional demand, strengthening the Atlantic Basin pull for cargoes.

In a rare flow pattern, Australian LNG cargoes were diverted from Asia to Europe, as higher European netbacks and low freight rates improved westbound economics, S&P Global Commodities at Sea(opens in a new tab) data showed. These Australian volumes partially offset the tighter US feedgas supply and provided a buffer to the broader Atlantic market.

In Asia, spot prices were capped for most of the period amid muted incremental demand from regional utilities.

Spot activity picked up toward the end of the window, however, as Southeast Asian buyers tendered for cargoes ahead of peak summer cooling demand. Thailand’s PTT, Gulf Energy and Hin Kong, along with Vietnam’s PV Gas, procured around five cargoes in total, Platts reported earlier.

With the arbitrage for marginal cargoes into Asia mostly closed, regional basis spreads against JKM narrowed sharply.

“The closed arbitrage is forcing buyers outside the liquid markets to pay up to attract cargoes, with low freight rates also contributing,” a Singapore-based trader said.

The JKM-SEAM and JKM-WIM spreads fell to record lows of 1.2 cents/MMBtu and 6.2 cents/MMBtu, respectively, on Feb. 10.
Source: Platts