Platts seeks feedback on Transco, zone 3 index gas methodology

Platts, part of S&P Global Commodity Insights, has observed a pricing divergence in Transco, zone 3 and seeks feedback on the index methodology.

The current methodology includes deliveries into the Transcontinental Pipeline between compressor station 45 to station 65. Market participants have reported bilateral discounted trades at locations west of station 60. At times, the price of these trades has been much lower than other trades at zone 3. Platts has excluded these discounted trades in daily and monthly indices when it has significantly impacted the index.

Platts seeks feedback on this approach and whether the market views the extreme price disparities as a fundamental shift in the market that might warrant a change in its existing Transco, zone 3 methodology.

Our current methodology can be found here.

Please send any comments or questions to AmericasGasPricing@spglobal.com and pricegroup@spglobal.com by March 3, 2023. 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.