For several years, many government agencies, LNG industry players and commodity trading organisations have been pushing for the development of an Asian LNG market price that is independent of oil prices and reflective of the LNG value in Asia and the Asian supply and demand balance. Initiatives, each backed by the relevant government, are underway in Singapore, Japan and Shanghai to establish LNG price indexes that reflect these regional markets, with each initiative seeking the establishment of a reliable and liquid price index that reflects the relevant Asian market (an Asian LNG equivalent of Brent or Henry Hub).

To date, these initiatives have yet to result in an Asian LNG pricing index that the LNG sellers and buyers can rely on for their mid to long term pricing basis. However, recent trading data for the Platts JKM TM (Japan Korea Marker) indicates that, perhaps, the LNG industry has finally settled on a first benchmark for spot and short term LNG sales in Asia.