SUBSCRIBER NOTE: ICE Bids and Offers

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 a methodology change to its monthly assessment process when there are no reported trades or when the volume weighted average is not an adequate indicator of trading activity during bidweek.

Firstly, when there are no reported transactions, Platts may perform assessments, rather than relying on a pure indexation model. Secondly, 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 January 2017 bidweek, which comprises trading on Dec 23, 27, 28, 29, and 30.

Please send any comments to the proposals above to gas_survey_comments@platts.com and pricemethodology@spglobal.com by December 16. 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.