Platts seeks feedback on Algonquin city-gate natural gas methodology

S&P Global Platts is seeking market feedback in its review methodology for the Algonquin city-gate natural gas daily and monthly index.

Due to constraints at the Cromwell compressor station, Platts has observed a price divergence when looking at trading activity south (upstream) of the compressor station.

These trades currently fit methodology but tend to diverge from other reported transactions on a given day depending on the volume associated with these trades. Through initial conversations with the market, Platts has formulated the three options below as a way to address this concern.

Option 1: Alter the existing methodology to not include trades done south of the Cromwell compressor station. Only trading north (downstream) of the compressor station will be included.

Option 2: Leave the AGT CG methodology unchanged, but list two separate sub-listings like the course of action taken for Tennessee, zone 6 delivered. The sub-listings would be a north and south of the Cromwell compressor station.

Option 3: Leave the AGT CG methodology unchanged entirely.

Please send any comments for the above to americasgaspricing@spglobal.com and pricegroup@spglobal.com by April 30. 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.