ACER launches its LNG benchmark
What is it about?
The European Union Agency for the Cooperation of Energy Regulators (ACER) launched its daily Liquefied Natural Gas (LNG) benchmark on Friday, 31 March 2023, as required by Council Regulation (EU) 2022/2576.
The LNG benchmark provides for greater market transparency based on mandatory data reporting, and hence is expected to reflect real-world prices for LNG. Stakeholders may use the LNG benchmark voluntarily.
The daily LNG benchmark complements ACER’s daily LNG price assessments, launched on 13 January 2023.
Access the LNG Price Assessment and LNG benchmark (of 31 March 2023).
Learn more about the LNG price assessment and benchmarks.
What is the difference between the LNG price assessment and the LNG benchmark?
ACER publishes three distinct and independently calculated Delivered Ex-Ship (DES) Spot LNG price assessments: for Europe (EU), for North West Europe (NWE) and South Europe (SE).
In addition, ACER publishes a daily LNG benchmark determined by the spread between the daily LNG price assessment for DES LNG Spot EU and the settlement price for the TTF Gas Futures front-month contract established by ICE Endex Markets B.V.
How is the LNG benchmark determined?
ACER’s daily LNG benchmark (published daily from 31 March 2023) is determined by the spread between ACER’s daily LNG price assessment for ‘delivery ex-ship’ (DES) LNG Spot EU and the settlement price for the TTF Gas Futures front-month contract established by ICE Endex Markets B.V.
When and where will the daily benchmark be published?
ACER will publish the LNG benchmark every weekday as soon as technically possible. The results will be published on TERMINAL.
How has ACER’s price assessment methodology evolved so far?
ACER published the first beta version of its LNG price assessment methodology on 13 January 2023 and the second one on 8 March 2023. The second version increased the robustness of the methodology and reduced the time-lag resulting from the rolling window used to calculate the price (see 6 March news).
The latest version, published on 23 March 2023 and with effect from 31 March 2023, covers both the LNG price assessment methodology and the benchmark methodology.
ACER will continue to periodically revise the methodology and the guidance on reporting LNG market data, in consultation with stakeholders.
Check out ACER’s LNG price assessment methodology documents.
When will the methodology be revised next?
The exact date of the next update is not determined yet.