Natural Gas

September 04, 2024

Platts proposes to amend two Northwest Pipeline natural gas index methodologies

Platts, part of S&P Global Commodity Insights, has reviewed its Northwest Pipeline natural gas index locations and proposes to amend certain methodologies based on market feedback.

Specifically, Platts proposes to amend the methodology of its Northwest, Rocky Mountains monthly (IGBCP03) location to include all transactions done at the Kern River Gas Transmission receipt pool (KRGT-Rec Pool) in the monthly index.

Currently, only KRGT-Rec Pool trades that are specified as being done at the Opal Plant, the Pioneer Plant, and Muddy Creek are included in the Northwest, Rocky Mountains monthly index. The proposed changes would result in all KRGT-Rec Pool trades being included in the Northwest, Rocky Mountains monthly index regardless of which delivery location is specified, ensuring that trades are not included or excluded based solely on how the trades are reported to Platts.

The proposed changes to the methodology for the Northwest, Rocky Mountains monthly index would be as follows:

Existing Proposed

Northwest, Rocky Mountains (monthly market)

Deliveries into Northwest Pipelines mainline in Wyoming, Utah and Colorado between the Kemmerer and Moab stations. Deliveries at Ignacio, Colorado, and elsewhere in zone MO are excluded. Transactions done at Opal, Wyoming, Pioneer Plant and the Muddy Creek compressor station, where Northwest interconnects with Kern River Gas Transmission, MountainWest Pipeline and Colorado Interstate Gas, are used in both the Kern River, Wyoming, and Northwest Pipeline, Rocky Mountain, monthly postings because gas traded at those points often is not for nomination into a specific pipeline.

Northwest, Rocky Mountains (monthly market only)

Deliveries into Northwest Pipelines mainline in Wyoming, Utah and Colorado between the Kemmerer and Moab stations. Includes transactions done at Opal Plant, Pioneer Plant, Muddy Creek, and the Kern River Gas Transmission receipt pool (KRGT-Rec Pool). Deliveries at Ignacio, Colorado, and elsewhere in zone MO are excluded.

Additionally, to align market feedback and regional trading patterns, and to minimize overlap with the Northwest, Rocky Mountains monthly index, Platts proposes to amend the Northwest, Wyoming Pool daily (IGBDA00) and monthly (IGBDA03) index methodology to no longer include trades reported at Muddy Creek or at the KRGT-Rec Pool.

The proposed changes to the methodology for the Northwest, Wyoming Pool daily and monthly indices would be as follows:

Existing Proposed

Northwest, Wyoming pool (daily and monthly market)

Deliveries into Northwest Pipeline from the Green River, Wyoming compressor station to the Kemmerer, Wyoming station. Included are deliveries at the Opal Plant as well as at the Painter, Anschutz, Muddy Creek, Granger, Shute Creek, Pioneer Plant and Whitney stations.

Northwest, Wyoming pool (daily and monthly market)

Deliveries into Northwest Pipeline from the Green River, Wyoming compressor station to the Kemmerer, Wyoming station. Included are deliveries at the Opal Plant as well as at the Painter, Anschutz, Granger, Shute Creek, Pioneer Plant and Whitney stations. Trades done at the Kern River Gas Transmission receipt pool are not included.

The proposed changes impacting the Northwest, Rocky Mountains and Northwest, Wyoming Pool monthly indices would begin to apply to trades done during November bidweek for gas to be delivered starting Nov. 1, 2024. The proposed changes impacting the daily Northwest, Wyoming Pool index would begin to apply to next-day trades done on Oct. 31, 2024, for delivery Nov. 1, 2024.

The full US and Canada natural gas methodology and specifications guide can be found here.

Please write to AmericasGasPricing@spglobal.com and pricegroup@spglobal.com with feedback by Sept. 30, 2024, indicating whether the feedback should be kept private and confidential. Feedback not marked as such may be made available for public viewing upon request.