Platts proposes to launch three new carbon neutral LNG assessments

S&P Global Platts is proposing to launch three new daily LNG price assessments relating to carbon neutral LNG (CNL), namely the cost to offset the combustion leg of a CNL trade in North Asia, a CNL full lifecycle assessment and a CNL well-to-flange DES assessment, effective Aug. 16, 2021.

The first proposed assessment would reflect the cost to offset the combustion leg of a CNL trade in North Asia. This would be an estimate of the cost to offset carbon dioxide equivalent (CO2e) emissions associated with internal pipeline transport and combustion of re-gasified LNG in the world's largest LNG demand region of Japan, Korea, Taiwan and China (JKTC).

The proposed CNL full lifecycle assessment would reflect the cost to offset CO2e emissions for the full life cycle of an LNG cargo delivered to JKTC from Australia. The terms well-to-wheel or well-to-wire are also used to describe the full lifecycle trade.

The proposed CNL well-to-flange DES assessment would reflect the cost to offset CO2e emissions of an LNG shipment from Australia delivered ex-ship to JKTC at the flanges of the discharge port.

As part of this proposal, Platts is seeking market feedback on the optimal estimate for the CO2e emissions stemming from internal pipeline transport and combustion, or direct fuel consumption emissions, of re-gasified LNG in JKTC.

These assessments would use 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 and reflects 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 proposed assessments would 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 proposed assessments would be calculated using the most recent available CNC assessment.

Platts had earlier launched its CNL well-to-tank (WTT) price assessment (ACNLB00) on June 16, 2021, which reflects the costs associated with offsetting CO2e stemming from production, liquefaction, shipping and regasification of LNG from Australia-JKTC (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/061621-platts-launches-carbon-neutral-lng-price-assessment-june-16).

Please send all comments, feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by July 13, 2021. 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.