Platts proposes update to North American LNG feedgas cost assessments

Platts, part of S&P Global Commodity Insights, is proposing to update its daily North American LNG feedgas cost assessments to include Calcasieu Pass in Louisiana, effective Jan. 9, 2023.

The move will follow the startup of production at Venture Global LNG's Calcasieu Pass in January 2022, boosting US LNG feedgas demand.

The proposed addition of Calcasieu Pass, and the change in the weighting of each terminal in both the average US Gulf Coast and US LNG delivered feedgas, would better reflect the overall composition and feedgas costs in the North American LNG feedgas cost assessments.

Platts North American LNG feedgas cost assessments currently reflect estimated facility feedgas costs for six major liquefaction facilities: Sabine Pass LNG, Corpus Christi LNG, Cove Point LNG, Cameron LNG, Freeport LNG and Elba Island.

The assessments represent calculations derived from Platts North American gas spot price indexes at the hubs from which feedgas would be procured most economically for the export facility.

The average summary costs, in $/MMBtu, are an average of the relevant export facilities' feedgas costs weighted by S&P Global Commodity Insights daily estimated volume delivered to each facility.

The weightings of each export facility in the average USGC and US feedgas cost assessments would be reviewed at the start of every quarter, based on the calendar for financial quarters followed by US companies that are subject to Generally Accepted Accounting Principles.

The assessments reflect the feedgas cost calculations at 2:30 pm New York time and follow the US publishing schedule.

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

Assessments Codes

Daily average US LNG feedgas cost ALNFG00

30-day moving average US LNG feedgas cost ALNUS00

Daily average USGC LNG feedgas cost ALNFH00

30-day moving average USGC LNG feedgas cost ALNUG00

Sabine Pass feedgas cost ALNFA00

Corpus Christi feedgas cost ALNFB00

Cove Point feedgas cost ALNFC00

Cameron feedgas cost ALNFD00

Freeport feedgas cost ALNFE00

Elba Island feedgas cost ALNFF00

Further details on the North American feedgas model can be found here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_lng.pdf.

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Oct. 21, 2022.

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.