S&P Global Platts has launched on January 2, 2020 an analytical feedgas cost model for US LNG export terminals.
The indicative feedgas cost model is calculated using data from Platts US natural gas indexes as well as S&P Global Platts Analytics gas flow data.
Platts has created a model of indicative procurement prices for feedgas into US LNG export facilities, weighting different gas trading locations' prices and delivery costs according to their likely influence on cumulative gas procurement costs at different facilities.
Proportional flow data and transport costs from S&P Global Platts Analytics have been used to create a volume-weighted average using the following Platts gas indices, listed by facility:
Cameron LNG - Columbia Gulf (IGBBG00), Florida Gas (IGBBK00), Tennessee, La., 800 leg (IGBBR00), Texas Eastern, (IGBBR00), Transco, Zone 2, (IGBBU00)
Corpus Christi LNG - Transco Zone 01 (IGBBC00), Texas Eastern, STX (IGBBB03), Tennessee Zone 0 (IGBBA00)
Cove Point LNG - Transco Zone 5 (IGBEN00), Columbia Gas, Appalachia (IGBDE00), Dominion South (IGBDC00)
Elba LNG - Sonat Louisana (IGBBO00), Transco, Zone 5 (IGBEN00)
Freeport LNG - Katy (IGBAQ00)
Sabine Pass LNG - NGPL Texok zone (IGBAL00), Trunk Line West LA (IGBBW00), Transco Zone 2 (IGBBU00), Tetco West LA (IGBBR00)
A daily computation of Average USGC LNG feedgas cost (ALNFH00) is calculated using the following capacity-based proportional weightings: Cameron LNG (0.10), Corpus Christi LNG (0.225), Freeport LNG (0.115) and Sabine Pass LNG (0.56).
A daily computation of Average US LNG feedgas cost (ALNFG00), is calculated using the following capacity-based proportional weightings: Cameron LNG (0.09), Corpus Christi LNG (0.195), Cove Point LNG (0.11), Elba Island (0.015) Freeport LNG (0.10) and Sabine Pass LNG (0.49).
A 30-day rolling average of these two costs is also published for USGC LNG feedgas cost (ALNUG00) and US LNG feedgas cost (ALNUS00).
The model will be periodically reviewed to ensure the weightings of the procurement locations, the delivery costs to the facilities as well as the weightings of each export facility in the average USGC and US feedgas cost price series correspond to market dynamics.
Platts welcomes feedback on the gas trading locations used, the proportional weightings considered and all other aspects of the methodology proposed for constructing the feedgas cost model.
These cost models will appear in Platts LNG Daily and Platts Gas Daily, and on fixed pages PGN1100 and LNG1100.
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.