SUBSCRIBER NOTE: New Assessments

S&P Global Platts proposes new daily and monthly North American Natural Gas indices.

On November 21, 2016, Platts announced an agreement with Intercontinental Exchange to improve Natural Gas price transparency and bolster North America price benchmarks. To that end, Platts is proposing new daily and monthly Natural Gas indices. Platts would not launch the new indices until the end of the transition period of the Platts - ICE agreement, which at this time is expected to last until the end of Q1 2017.

In the proposals below, there is a distinction between Platts locations and ICE locations. After the transition period, ICE pricing data for ICE locations that match Platts locations will be discontinued, and only a Platts price will be published. Platts will publish price data for ICE locations that do not match Platts locations when there are reported transactions.

1. New Preliminary Daily Indices For Platts And ICE Locations: Platts is proposing to publish new preliminary daily price indices for Platts and ICE locations shortly after the market close. Only reportable trades executed on ICE or matched in eConfirm would be included in the preliminary indices. Platts would not screen the trade data for outliers. The indices would reflect a volume weighted average of transactions executed between 6:00 am and 1:00 pm CPT. Platts would publish the index price, high price, low price, common range, volume, and deal count for each location with trading activity. Price data would not be published for Platts or ICE locations with zero transactions. Prices would be published to 3 decimal places and be rounded to the nearest half cent.

2. New Preliminary Monthly Indices For Platts And ICE Locations: Platts is proposing to publish preliminary monthly indices for Platts and ICE locations each day during bidweek. Only reportable trades executed on ICE or matched in eConfirm would be included in the preliminary indices. Platts would not screen the trade data for outliers. The daily and bidweek to date indices would reflect a volume weighted average of fixed price and basis transactions executed during bidweek. Platts would publish the index price, high price, low price, volume, and deal count for each location with trading activity. Price data would not be published for Platts or ICE locations with zero transactions. Monthly prices and fixed price trade data would be published to 2 decimal places. Basis trade data would be published to 3 decimal places.

3. New Final Daily Indices For ICE Locations: Platts is proposing to publish final daily indices for ICE locations at the same time final daily indices for Platts locations are currently published. Only reportable trades executed on ICE or matched in eConfirm would be included in the final indices for ICE locations. Platts would not screen the trade data for outliers. The indices would reflect a volume weighted average of transactions executed between 6:00 am and 1:00 pm CPT. Platts would publish the index price, high price, low price, common range, volume, and deal count for each location with trading activity. Price data would not be published for ICE locations with zero transactions. Similar to Platts locations, final daily prices for ICE locations would be published to 3 decimal places and would be rounded to the nearest half cent.

4. New Final Monthly Indices For ICE Locations: Platts is proposing to publish final monthly indices for ICE locations at the same time final monthly indices for Platts locations are currently published. Only reportable trades executed on ICE or matched in eConfirm would be included in the final indices for ICE locations. Platts would not screen the trade data for outliers. The indices would reflect a volume weighted average of transactions executed during bidweek. Platts would publish the index price, high price, low price, volume, and deal count for each location with trading activity. Price data would not be published for ICE locations with zero transactions. Similar to Platts locations, final monthly prices and fixed price trade data for ICE locations would be published to 2 decimal places. Basis trade data would be published to 3 decimal places.

Please send any comments to the proposals above to gas_survey_comments@platts.com and pricemethodology@spglobal.com by January 13, 2017. 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.