S&P Global Platts and Intercontinental Exchange jointly announced the launching of a unexampled entourage of North American natural gas index number to better capture dramatically modify supplying and need flows , regional price differentials and increased spot grocery store excitableness in the US and Canada .
The physical innate natural gas market has modify significantly in recent years due to spectacular increase in northeasterly gas output , reversal of flow of exist pipelines , newfangled pipeline undertaking , and increase source of demand such as power coevals , liquefied natural gas ( LNG ) exportation , and exports to Mexico . In response to these ontogeny and through extended grocery store betrothal with the industry , S&P Global Platts and ICE have educate Platts - ICE GIA to ply more foil into North American spot market volatility and regional terms differential .
The young suite of physical rude petrol price index finger incorporate prior - season provision and demand catamenia and physical next - day natural gas prices at 20 emplacement across four regions in North America . The index will be published day by day after the finis of trading ; will be based on Platts born Gas indices as write in Gas Daily ; and , are the result of next - day , forcible fixed - monetary value trades report to S&P Global Platts by Price Reporters and innate throttle trades concluded on the trash screen .
The Platts - ICE GIA suite include :
The index are designed to capture comprehensive market fundamentals for North America as a whole , as well as each region , thereby making them more antiphonal to supplying , demand , atmospheric condition , infrastructure and other changes that can cause market and Mary Leontyne Price volatility .
J.C. Kneale , Vice President , North American Natural Gas , Power and NGL Markets , trash : " By leveraging the military capability of ICE and Platts ' strong-arm market experience , GIA ply an meliorate , substitute index for North American and regional hedging for client both domestically and globally . There is a grow market opinion that significant regional volatility and grocery fundamentals are not being adequately captured in the Henry Hub born gas pedal futures contract , making it tough to hedge monetary value risk . That ’s why we ’re proud of to take this next step in our partnership with S&P Global Platts to king these novel index , which should be of interest to a blanket bent of market participant , include financial institution and other investor type . "
upshot last winter supply evidence of the value of regional - specific indices . From Dec 26 , 2017 to Jan 5 , 2018 , the US Northeast and Midwest experienced well below normal temperature and regional prices swung dramatically , which resulted in a cargo of natural gasolene at ocean ( in the form of LNG ) to convert destinations to meet market need in the US Northeast . This weather - driven gas demand was clearly demonstrated by the Platts - ICE GIA Northeast and Midwest indices , but market fundamentals at Henry Hub during the full point conk out to reflect the regional moral force and , instead , the straightaway - month values held to a tight range .
Leveraging S&P Global Platts ' extensive database of more than 35,000 pipeline meter point across the res publica and bench mark pricing for more than 200 locations , the unexampled Platts - ICE GIA suite provides a view of natural accelerator pedal prices regionally and pan - North America , with a focusing on expanse with the highest supply and demand flows . That activate the indices to be more reflective of each several regional market .
S&P Global Platts Analytics habituate the prior winter or summer season line flows to determine location , localization weight , and regional weightings in the Platts - ICE GIA . This results in a dynamic methodological analysis that incorporates market changes such as new pipelines , change in flows , and novel source of need , foreground localization in each realm which are the most relevant . The methodological analysis is designed to ensure no single placement or region can dominate the indices .
The methodological analysis for the new Platts - ICE GIA indices may be happen at : https://www.spglobal.com / platts / en / our - methodology / methodology - specification / natural - gas
S&P Global Platts and ICE on November 21 , 2016 , entered a data point - sharing partnership to beef up the North America ’s lifelike gun benchmarks , streamline the coverage summons , and further improve transparency in over - the - counter ( OTC ) pricing . Platts and ICE have been energy technology and data point partners since 2007 .
S&P Global Platts price references in instinctive gasolene have been greet by the marketplace and industry as the North American bench mark for nearly 30 old age .
For more information : www.platts.com
