Platts launches assessments of natural gas methane performance certificates

S&P Global Platts has begun publishing daily price assessments of Methane Performance Certificates (MPC) from Oct. 4, 2021.

The decision follows from a proposal published Aug. 9 and available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080921-platts-proposes-to-begin-publishing-assessments-of-natural-gas-methane-performance-certificates

The Platts MPC assessments reflect the value of certificates traded in the spot market that represent low methane emissions in natural gas production in the contiguous US and Canada.

Each MPC corresponds to 1 MMBtu of gas production with zero methane emissions.

Methane emissions generated by production are a significant contributing factor to the carbon intensity of natural gas.

Methane intensity represents the ratio of methane emissions to natural gas measured for specific production streams.

Platts uses data from market participants, including traders, brokers, and exchanges to inform the assessment process.

Information includes bids, offers, trades and registry change of ownership information. Platts also seeks to publish all relevant data during the assessment process.

Platts MPC assessments are time-stamped and published to 1:30 pm Central time and reflect the Platts Houston holiday schedule.

Methane intensity is the measure of methane emissions as a percentage of natural gas produced.

Platts reflects MPCs that have been issued against production that has a methane intensity of less than 0.10%.

For production below this threshold, MPCs will be issued representing the percentage of methane intensity below the industry average of 0.437%.

For example, a producer with a methane intensity of 0.0874%, or 80% below the industry threshold will receive 800 MPCs per 1,000 MMBtu of production.

This producer will qualify for issuance of MPCs because its methane intensity is below a base threshold of 0.10%.

This threshold, and the basis for it, is subject to continuous review as new data becomes available.

Platts only reflects MPC data that reflects measured emissions verified by third parties rather than estimated self-reported data.

Measurement of emissions needs to be via a process that allows for continuous collection of production volumes and its respective methane intensity as measured and independently computed.

The assessment is published in $/MPC and $/mtCO2e using a conversion factor of 161.29 MPC/mtCO2e.

It is published in the Gas Daily and Energy Trader publications and via a new market data category MPC.

Please send any questions to americasgaspricing@spglobal.com, platts_carbon@spglobal.com and pricegroup@spglobal.com.

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