SUBSCRIBER NOTE: Platts launches new Platts-ICE Gas Indices Americas natural gas indexes

Effective October 29, S&P Global Platts has launched new daily natural gas indexes. The Platts-ICE Gas Indices Americas (GIA) natural gas indexes are part of an agreement with the Intercontinental Exchange (ICE) to improve natural gas price transparency and bolster North America price benchmarks. The indexes increase market transparency and illustrate regional price differentials and spot market volatility.

Methodology:

Platts publishes a GIA North America index as well as GIA Northeast, GIA South, GIA Midwest, and GIA West region indexes. The indexes are comprised of next day physical fixed price trades on the business day prior to delivery as reported to Platts by price reporters and ICE.

Platts collects interstate pipeline natural gas data from the Intraday 3 pipeline nomination cycle to determine locations, location weightings and region weightings. Volumes are compiled by location according to the location definitions in the Platts North American Natural Gas methodology guide.

a. Trading locations are determined by selecting the five daily Platts locations in each region with the highest average daily nomination volume in the Northeast, South, Midwest, and West regions in the prior winter (Nov-Mar) or summer (Apr-Oct) seasons. The locations remain constant for the entirety of the season. To ensure adequate liquidity, each location must have an average daily deal count of 20 trades over the prior winter or summer season.

b. The GIA region indexes represent weighting of the five selected locations based on the average daily nomination volume in the prior winter or summer season. The location prices represent Platts final daily indexes, published around 5 pm Central time according to the Platts daily gas survey calendar. The location weightings remain constant for the entirety of the season. No location may have a location weighting greater than twice the size of the direct average of the five points, i.e. 40%. Should a location need to be capped, any allocation above 40% is divided equally over the other locations in that region.

c. The GIA North America index represents the weighting of each of the four GIA region indexes based on each region's average daily nomination volume in the prior winter or summer season. The region weightings remain constant for the entirety of the season. No region may have a location weighting greater than twice the size of the direct average of the four regions, i.e. 50%. Should a region need to be capped, any allocation above 50% is divided equally over the remaining regions.

Platts announced the trading locations, location weightings, and region weightings in April for the following winter, and in November for the following summer.

The indexes are published on fixed page NG300 and are also available in Gas Daily.

The new indexes and trade date symbols are as follows: GIA Northeast (IGKAA00), GIA South (IGLAA00), GIA Midwest (IGMAA00), GIA West (IGNAA00), and GIA North America (IGOAA00).

For more information, see the GIA natural gas indexes methodology guide located at https://www.spglobal.com/platts/en/our-methodology/methodology-specifications /natural-gas.

Please send any comments to AmericasGasPricing@spglobal.com and pricemethodology@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.