Platts launches CNL WTW assessment based on GHG removals credits July 18

Platts, part of S&P Global Commodity Insights, has launched a carbon neutral LNG, or CNL, full life cycle assessment that reflects the cost to offset carbon dioxide equivalent (CO2e) emissions for an LNG cargo delivered to Japan, South Korea, Taiwan and China, from Australia on July 18.

The CNL WTW Australia-JKTC (Removals Credits) assessment uses Platts CRC carbon price assessment (ACRCA00) as the basis of the cost of carbon credits purchased and retired to offset carbon emissions from an LNG cargo.

Platts first proposed the launch in a subscriber note published on May 25, 2022: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/052522-platts-proposes-to-launch-cnl-wtw-assessment-based-on-ghg-removal-credits.

The assessment reflects LNG produced and liquefied in Australia and shipped in a TFDE carrier to JKTC. It is based on the standard cargo volume of 3.4 TBtu reflected in the Platts JKM assessment. The terms well-to-wheel or well-to-wire are also used to describe this type of trade.

The CNL WTW Australia-JKTC (Removals Credits) assessment is published in dollars per MMBtu and follows the Singapore publishing schedule.

On UK public holidays -- when there is no CRC assessment -- the CNL assessment will be calculated using the most recent available CRC assessment. Platts CRC is a basket assessment for greenhouse gas emissions removals credits that reflects the most competitive of the Platts Natural Carbon Capture and Platts Technological Carbon Capture assessments.

The assessment complements the current suite of Platts CNL assessments, which 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. Platts CNC assessment reflects the most competitive nature-based carbon credits that either avoid or remove GHG emissions.

The new assessment appears on Platts LNG Daily and LNG Alert page 3000 under the following Platts price database codes:

Assessment Code

CNL WTW Australia-JKTC (Removals Credits) ACNLL00

CNL WTW Australia-JKTC (Removals Credits) Cumulative MAvg ACNLM00

CNL WTW Australia-JKTC (Removals Credits) MAvg ACNLL03

For more information on Platts CRC, please consult the following methodology document: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/energy-transition/carbon-credits. 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 comments not marked as confidential available upon request.