Platts clarifies calculation for North American feedgas cost model

Platts, part of S&P Global Commodity Insights, would like to clarify that its daily North American LNG feedgas cost assessments reflect feedgas flow proportional weightings, rather than capacity-based proportions.

The update(opens in a new tab) was launched on Jan. 9, 2023, as the weighting for each terminal based on volume delivered in both the average US Gulf Coast and US LNG delivered feedgas better represented the overall composition and feedgas costs in our assessments.

Currently, the Platts North American LNG feedgas cost assessments account for estimated facility feedgas costs from seven major liquefaction facilities: Sabine Pass LNG, Corpus Christi LNG, Cove Point LNG, Cameron LNG, Freeport LNG, Elba Island, and Calcasieu Pass. The assessments derive calculations from Platts North American gas spot price indexes at the hubs from which feedgas can be procured most economically for the export facilities.

The average summary costs, expressed in $/MMBtu, are calculated as a weighted average of the relevant export facilities' feedgas costs based on S&P Global Commodity Insights' daily estimated volume delivered to each facility. The weightings for each export facility in the average USGC and US feedgas cost assessments will be reviewed at the beginning of each quarter in accordance with the financial calendar followed by US companies subject to Generally Accepted Accounting Principles. These assessments reflect feedgas cost calculations at 2:30 PM New York time and adhere to the US publishing schedule.

Platts has also proposed to update its daily North American LNG feedgas cost assessments to include the Plaquemines facility (opens in a new tab)in Louisiana, effective May 20, 2025.

Further details on the North American feedgas model can be found here: https://www.spglobal.com/content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/lng/lng-specifications.pdf(opens in a new tab)

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@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.