SUBSCRIBER NOTE: Platts proposes to launch US LNG feedgas cost model

S&P Global Platts is proposing to launch a feedgas cost model for LNG producers located on the US Gulf Coast, effective December 1, 2019.

The indicative feedgas cost model would be constructed using data from Platts US natural gas indexes as well as S&P Global Platts Analytics gas flow data.

Platts would create a model of indicative procurement prices for feedgas into LNG export facilities on the USGC, weighting different gas trading locations' prices according to their likely influence on cumulative gas procurement costs at different facilities.

The model would be periodically reviewed to ensure these proportional weightings correspond to market dynamics.

Platts welcomes feedback on the gas trading locations used, the proportional weightings considered and all other aspects of the methodology proposed for constructing the feedgas cost model.

Please send all feedback, comments and questions to lngeditorialteam@spglobal.com and pricegroup@spglobal.com by September 30, 2019.

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.