Platts proposes new Transco, station 65 natural gas index

Platts, part of S&P Global Commodity Insights, proposes to add a new Transco, station 65 daily and monthly natural gas index.

Platts also proposes to leave the existing Transco, zone 3 methodology unchanged.

These proposals follow a request for feedback on the Transco, zone 3 (IGBBV00) methodology found here.

The current Transco, zone 3 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 65. At times, the price of these trades have 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.

Going forward, Platts proposes to keep its current methodology unchanged for its Transco, zone 3 index, which includes locations west of station 65, and to add a secondary index that will only include trades done at station 65. Trades at station 65 would be included in both indices.

The methodology for the proposed new location would be as follows: Transco, station 65 (daily and monthly market): Deliveries into Transcontinental Gas Pipeline at station 65 on the Louisiana-Mississippi border in St. Helena Parish, Louisiana.

The proposed change would become effective for trade date May 31 for flow date June 1 for the daily index and for May 24 for the monthly index, the first trading day of June bidweek.

The current natural gas methodology can be found here.

Please send any comments or questions to AmericasGasPricing@spglobal.com and pricegroup@spglobal.com by April 21, 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