Jan 09 2023
Platts, part of S&P Global Commodity Insights, is now publishing daily LNG-based natural gas assessments reflecting the value of natural gas delivered inland to end-users in the northeast and southeast of Brazil, effective Jan. 9.
This follows market feedback on a need for additional transparency around Brazil delivered natural gas prices as the market continues to liberalize, especially considering new infrastructure that is being built in Brazil and to service gas shipments to the country.
Platts first proposed these new assessments in a subscriber note published Sept. 20: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/092022-platts-proposes-to-launch-lng-based-brazil-inland-natural-gas-assessments-jan-9-2023.
Platts has launched three assessments: one for gas delivered to end-users in the northeast, one in the southeast and one that is the average of both regions. For the northeast netforward assessment, Platts is using the daily Platts DES Brazil LNG assessment (LEBMH01) as the basis for LNG delivered to Salvador, Bahia. For the southeast netforward assessment, Platts is using the daily Platts DES Brazil LNG assessment, but accounting for the additional shipping days needed for arrival to Rio de Janeiro from common LNG supply ports. Inputs once onshore include regasification, port fees, storage, pipeline transportation and average estimated distribution costs based on market intelligence. Inland shipping-related costs are included, while non-shipping related taxes are excluded. The assessments are being published on a fixed price basis in $/MMBtu and reflect market value at 4:30 pm London time. Platts is also publishing these assessments as a differential to Platts JKM. These assessments follow the UK publishing schedule.
The calculations will be reviewed periodically to ensure the inputs reflect prevailing market dynamics. The calculations will be reviewed at least once annually, and more frequently based on market intelligence.
The assessments will appear in Platts LNG Alert page 1100, Platts Natural Gas Alert page 1100, and Platts LNG Daily under the following price database codes:
Brazil Inland Gas Derived from LNG Cost Northeast $/MMBtu ABINA00
Brazil Inland Gas Derived from LNG Cost Southeast $/MMBtu ABINB00
Brazil Inland Gas Derived from LNG Cost Average $/MMBtu ABINC00
Brazil Inland Gas Derived from LNG Cost Northeast vs JKM $/MMBtu ABIND00
Brazil Inland Gas Derived from LNG Cost Southeast vs JKM $/MMBtu ABINE00
Brazil Inland Gas Derived from LNG Cost Average vs JKM $/MMBtu ABINF00
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