Platts to launch three new carbon neutral LNG assessments on Aug 16

S&P Global Platts will 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 well-to-wire assessment and a CNL well-to-flange DES assessment, effective Aug. 16, 2021.

The first assessment will reflect the cost to offset the combustion leg of a CNL trade in North Asia. This will 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 CNL full lifecycle assessment will 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 CNL well-to-flange DES assessment will 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. These assessments will 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.

Additionally, the assessments will follow a Singapore publishing schedule; however, it will be published after 1200 GMT London time in line with the Platts CNC assessment, which will reflect this timestamp from Aug. 9. (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/070621-platts-to-change-assessment-time-for-carbon-credit-assessments-to-1200-gmt).

On UK public holidays -- when there is no CNC assessment -- the CNL assessments will be calculated using the most recent available CNC assessment. The existing CNL well-to-tank (WTT) price assessment (ACNLB00) will also be published after 1200 GMT London time from Aug. 9. It is currently published after 4:30 pm London time.

Platts had earlier launched the CNL WTT price assessment 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). Platts will periodically review the carbon dioxide equivalent (CO2e) emissions associated with the CNL assessments to ensure the inputs reflect prevailing standards.

Please send all comments, feed-back 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.