Platts to change Transco, zone 5 delivered South methodology, launch new Transco, Station 165 index

Platts, part of S&P Global Commodity Insights, will change the methodology of its Transco, zone 5 delivered South daily (IGCHL00) and monthly (IGCHL03) natural gas indices to no longer include transactions done at Station 165.

Platts also will launch a new Transco, Station 165 daily and monthly natural gas index.

The methodology change and new index launch will go into effect on the first gas day of the month following the commencement of deliveries from Mountain Valley Pipeline (MVP) into Transcontinental Gas Pipe Line (Transco) at the Cherrystone interconnect (hereafter referred to as the "MVP Startup"), provided that the MVP Startup occurs prior to the first trading day of bidweek in a given month.

If the MVP startup occurs on or after the first trading day of bidweek in a given month, then the changes will apply to trades done in the next month's bidweek for delivery in the month thereafter.

This is to provide sufficient notice to the market that the changes will begin to apply, and to avoid a situation where the old and new location definitions are both reflected in a monthly index price.

The methodology change and new index will launch according to the following dates:

In this example, Day 1 of the July 2024 bidweek is Monday, June 24.

In order for the changes to go into effect by July 1, the MVP Startup must occur on or before Sunday, June 23, since July 2024 bidweek trading begins on Monday, June 24.

Please note that while the implementation of the Transco, zone 5 delivered South daily and monthly changes will go into effect on the same flow date, the trade dates when the changes first apply will differ, based on the day-ahead and month-ahead trading schedule.

The amended Transco, zone 5 delivered South methodology will be as follows:

The Transco, station 165 index will launch at the same time as the updated location definition for Transco, zone 5 delivered South, with the daily symbol IGBYZ21 and the monthly symbol IGBYZ03. The methodology for the new Transco, Station 165 location is as follows:

The methodology for the Transco, zone 5 delivered and Transco, zone 5 delivered North indices will not change.

Station 165 trades will continue to be included in the generic Transco, zone 5 delivered daily and monthly markets.

The decision to amend the Transco, zone 5 delivered South methodology follows an extensive consultation and proposal period in which Platts gathered substantial feedback from market participants.

The original consultation subscriber note can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/010524-platts-seeks-feedback-on-transco-zone-5-south-natural-gas-index-methodology(opens in a new tab).

The proposal subscriber note can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030724-platts-proposes-changes-to-transco-zone-5-natural-gas-index-methodology(opens in a new tab).

A subscriber note seeking further feedback on the proposal can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041524-platts-extends-feedback-period-for-transco-zone-5-natural-gas-index-methodology-change-proposal(opens in a new tab)

Please send comments or questions about this decision to AmericasGasPricing@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.