S&P Global Platts has launched three new daily LNG price assessments relating to carbon neutral LNG (CNL), namely the cost to offset the combustion leg of a CNL trade in North Asia, a CNL well-to-wheel assessment and a CNL well-to-flange DES assessment, effective Aug. 16, 2021.
The first assessment reflects the cost to offset the combustion leg of a CNL trade in North Asia. This is an estimate of the cost to offset carbon dioxide equivalent (CO2e) emissions associated with internal pipeline transport and combustion of re-gasified LNG in the world’s largest LNG demand region of Japan, Korea, Taiwan, and China, (JKTC).
The CNL full lifecycle assessment reflects the cost to offset CO2e emissions for the full life cycle of an LNG cargo delivered to JKTC from Australia. The terms well-to-wheel or well-to-wire are also used to describe the full lifecycle trade.
The CNL well-to-flange DES assessment reflects the cost to offset CO2e emissions of an LNG shipment from Australia delivered ex-ship to JKTC at the flanges of the discharge port. These assessments use the Platts CNC carbon price assessment as the basis of the cost of carbon credits purchased and retired to offset the carbon emissions from an LNG cargo.
Platts first proposed launching these assessments in a subscriber note published June 29, 2021 (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/062921-platts-proposes-to-launch-three-new-carbon-neutral-lng-assessments). Additionally, the assessments follow a Singapore publishing schedule; however, they are published after 1200 GMT London time in line with the Platts CNC assessment, which reflects this time stamp from Aug. 9, 2021. (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/070621-platts-to-change-assessment-time-for-carbon-credit-assessments-to-1200-gmt).
On UK public holidays — when there is no CNC assessment — the CNL assessments will be calculated using the most recent available CNC assessment. The existing CNL well-to-tank (WTT) price assessment (ACNLB00) is also published after 1200 GMT London time from Aug. 9.
Platts had earlier launched the CNL WTT price assessment on June 16, 2021, which reflects the costs associated with offsetting CO2e stemming from production, liquefaction, shipping and regasification of LNG from Australia-JKTC (https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/061621-platts-launches-carbon-neutral-lng-price-assessment-june-16).
Platts will periodically review the CO2e emissions associated with the CNL assessments to ensure the inputs reflect prevailing standards.
These assessments, published in $/MMBtu, appear in Platts LNG Daily and Platts LNG Alert page 3000 under the price database codes below:
Assessments Code MAvg:
CNL DES JKTC (ex-Australia) Differential ACNLG00 ACNLG03
CNL DES JKTC (ex-Australia) Differential Cumulative MAvg ACNLI03
CNL WTW JKTC (ex-Australia) Differential ACNLF00 ACNLF03
CNL WTW JKTC (ex-Australia) Differential Cumulative MAvg ACNLH03
CNL Combustion JKTC ACNLJ00
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