SUBSCRIBER NOTE: Platts to add editorial judgment to final daily natural gas indices for Platts locations

On November 21, 2016, Platts announced an agreement with Intercontinental Exchange to improve natural gas price transparency and bolster North America price benchmarks. To that end, Platts proposed to add editorial judgment to final daily North American natural gas indices for Platts locations. The change would not take place until the end of the transition period of the Platts-ICE agreement.

The transition period will conclude at the end of May 2017. The new daily indices methodology will be launched on trade date May 31 for gas flow on June 1.

Currently Platts does not publish a daily price if there are no reported transactions. In addition, Platts is required to use the volume weighted average of reported trades. Adding editorial judgment allows Platts to assess a daily price if either there are no reportable transactions, or if the volume weighted average is not deemed to be representative of trading activity.

Platts will use other market information, including but not limited to, historical daily prices, locational spreads to values at related liquid locations, non-Platts price reporter matched eConfirm trades, and ICE physical bids and offers in the assessment process.

When assessing a price Platts will denote the assessed price with an asterisk in price tables and will publish an assessment rationale describing how the assessed price was derived.

Please send any comments to the above to gas_survey_comments@platts.com and pricemethodology@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.