Platts to launch LNG-based Brazil inland natural gas assessments Jan. 9, 2023

Platts, part of S&P Global Commodity Insights, will publish daily LNG-based natural gas assessments reflecting the value of natural gas delivered inland to end-users in the northeast and southeast of Brazil, effective Jan. 9, 2023.

This follows market feedback on a need for additional transparency around Brazil delivered natural gas prices as the market continues to liberalize, especially considering new infrastructure that is being built in Brazil and to service gas shipments to the country.

Platts first proposed these new assessments in a subscriber note published Sept. 20: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092022-platts-proposes-to-launch-lng-based-brazil-inland-natural-gas-assessments-jan-9-2023.

Platts will launch three assessments: one for gas delivered to end-users in the northeast, one in the southeast and one that is the average of both regions. For the northeast netforward assessment, Platts will use the daily Platts DES Brazil LNG assessment (LEBMH01) as the basis for LNG delivered to Salvador, Bahia. For the southeast netforward assessment, Platts will use the daily Platts DES Brazil LNG assessment, but account for the additional shipping days needed for arrival to Rio de Janeiro from common LNG supply ports.

Inputs once onshore will include regasification, port fees, storage, pipeline transportation and average estimated distribution costs based on market intelligence. Inland shipping-related costs will be included, while non-shipping related taxes will be excluded. The assessments will be published on a fixed price basis in $/MMBtu and will reflect market value at 4:30 pm London time. Platts will also publish these assessments as a differential to Platts JKM. These assessments will follow the UK publishing schedule. The calculations will be reviewed periodically to ensure the inputs reflect prevailing market dynamics. The calculations will be reviewed at least once annually, and more frequently based on market intelligence.

The assessments will appear in Platts LNG Alert page 1100, Platts Natural Gas Alert page 1100, and Platts LNG Daily under the following price database codes:

Assessment Codes

Brazil Inland Gas Derived from LNG Cost Northeast $/MMBtu ABINA00

Brazil Inland Gas Derived from LNG Cost Southeast $/MMBtu ABINB00

Brazil Inland Gas Derived from LNG Cost Average $/MMBtu ABINC00

Brazil Inland Gas Derived from LNG Cost Northeast vs JKM $/MMBtu ABIND00

Brazil Inland Gas Derived from LNG Cost Southeast vs JKM $/MMBtu ABINE00

Brazil Inland Gas Derived from LNG Cost Average vs JKM $/MMBtu ABINF00

Please send all feedback, comments 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.