SUBSCRIBER NOTE: Use of ICE bids, offers in monthly natural gas assessments

S&P Global Platts is extending is consultation period with regards to a proposed methodology change to its monthly natural gas assessment process when there are no reported trades or when the volume weighted average is not an adequate indicator of trading activity during bidweek.

Due to a limited number of responses received to date, Platts is extending the consultation period to January 13, 2017.

First, when there are no reported transactions, Platts may perform assessments, rather than relying on a pure indexation model.

Second, when the volume-weighted average is not deemed to be an adequate indicator of trading activity during bidweek, Platts may look at other means in determining an index price.

Platts is proposing to use ICE physical bid and offer data during bidweek in the assessment process should either of these situations occur.

Platts will continue to use other market information such as an analysis of historical bidweek prices, basis relationships to values at related liquid locations, implied physical values from financial swaps, and daily market trading at that point during bidweek in the assessment process.

Platts will continue to publish assessment rationales for assessed locations that describe the methodology used to derive the assessed price.

Platts is proposing to implement this methodology change starting with February 2017 bidweek, which comprises trading on January 25, 26, 27, 30 and 31.

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