Platts launches carbon neutral LNG price assessment June 16

S&P Global Platts has launched a daily spot differential assessment reflecting carbon neutral LNG deals into the Japan/Korea/Taiwan/China (JKTC) region from Australia, effective June 16, 2021.

The assessment reflects carbon dioxide emissions offset on a well-to-tank (WTT) basis and takes into consideration emissions associated with production, including an estimate for fugitive emissions, liquefaction, freight (including ballast leg) and regasification.

On the back of growth in trade of carbon neutral LNG (CNL) cargoes in 2021, Platts has launched this assessment, which reflects the most active trade route globally for LNG cargoes, which is from Australia to JKTC. Platts uses a weighted average of the estimated emissions of CO2e per metric ton of LNG produced from each production and liquefaction terminal in Australia to determine the upstream segment of the assessment.

The CNL WTT JKTC price assessment uses the Platts CNC carbon price assessment as the basis of the cost of carbon credits purchased and retired to offset the carbon emissions from an LNG cargo. The CNC was launched on June 14, 2021, and is reflective of the most competitive nature-based carbon credits that either avoid or remove GHG emissions (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/061421-platts-launches-nature-based-household-devices-carbon-credit-assessments).

The Platts CNL WTT JKTC assessment will follow a Singapore publishing schedule; however, it will be published after 1630 London time in line with the Platts CNC assessment. On UK public holidays -- when there is no CNC assessment -- the CNL WTT JKTC will be calculated using the most recent available CNC assessment.

CNL WTT JKTC is assessed in $/MMBtu and reflects a cargo quantity of 3.4 TBtu, mirroring the standard volume reflected in the Platts JKM assessment (AAOVQ00).

The daily spot assessment will be available in the Platts price database under the code ACNLB00 along with its affiliated monthly and cumulative monthly averages (ACNLA03 and ACNLD03) on Platts LNG Alert fixed pages LNG3000 and LNG3001. This assessment will also be available in LNG Daily.

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

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.