Platts reviews Kern River natural gas index methodologies

Platts, part of S&P Global Commodity Insights, is reviewing natural gas index methodologies for the Kern River, Wyoming (monthly market only) IGBCL03 and the Kern River/Opal plant (daily market only) IGBCL00 locations. Platts invites market feedback on potential changes for these locations.

Transactions done on ICE for "KRGT-Rec Pool" are not included in the Platts Kern River/Opal daily index, because KRGT-Rec Pool includes certain locations that are outside of the area covered by the Kern River/Opal plant methodology. This results in KRGT-Rec Pool trades being excluded from the Kern River/Opal plant price index. Additionally, there are slight differences in the methodologies for the Kern River, Wyoming monthly location and the Kern River/Opal plant daily location.

In order to enhance price transparency and market reflectiveness, Platts is considering creating a new price location that would align the daily and monthly markets and ensure that KRGT-Rec Pool trades be better reflected in the index. This could be defined as follows:

Kern River, receipts (daily and monthly market)

Deliveries into Kern River Gas Transmission in Fuel Zones 1-6. Transactions done at the Opal, WY processing plant, the Pioneer plant, and the Muddy Creek compressor station are also included.

Please send any feedback or questions to AmericasGasPricing@spglobal.com and pricegroup@spglobal.com by June 28, 2024.

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.