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Price Assessment

Carbon Neutral LNG (CNL)

  • What is the Platts Carbon Neutral LNG (CNL)?
  • How does Platts assess the carbon neutral LNG?
  • Benefits of using carbon neutral LNG

What is the Platts Carbon Neutral LNG (CNL)?

Platts Carbon Neutral LNG (CNL) is a daily price assessment of Liquefied Natural Gas (LNG) cargoes whose carbon dioxide equivalent emissions have been offset up to and including the point of regasification (on a well-to-tank basis).

The assessment is an estimate of the costs associated with offsetting a standard, 3.4TBtu cargo of LNG, shipped from Australia to Japan, Korea, Taiwan, and China (JKTC) on a standard tri-fuel diesel-electric (TFDE) LNG carrier. The estimate uses a weighted average of the emissions from all Australia LNG liquefaction projects based on their 2020 annual production to arrive at a carbon dioxide equivalent value per metric tonne of LNG produced in Australia. Platts then adds the emissions associated with shipping LNG from Australia to JKTC (including the ballast leg), and then adds the emissions associated with regasification in North Asia to the figure. Finally, Platts uses its CNC carbon assessment to value the cost of purchasing nature-based voluntary carbon credits. This brings us to the $/MMBtu value for a WTT carbon-neutral LNG trade.

How does Platts assess the carbon neutral LNG?

Carbon neutral LNG trade until now has reflected various third-party calculations that commercial companies in the LNG use to benchmark the emissions lifecycle of an LNG cargo. Governmental agencies or ministries often issue these in LNG receiving nations. However, these can be reasonably generic, especially when considering that each liquefaction plant will have a different carbon emissions profile and LNG potentially has different end-users at its destination, too.

Platts brings greater visibility to the burgeoning Carbon neutral LNG market by providing an independent and transparent estimate for cargoes on the largest single trade route of LNG (Australia-JKTC).

For more details, please refer to our LNG methodology and specifications guide.

Benefits of using carbon neutral LNG

Platts carbon neutral LNG WTT JKTC price assessment provides greater visibility to users on the costs associated with offsetting a cargo of LNG on a well-to-tank basis. It is the first daily price assessment of its kind globally.

Methodology and Specifications

See all LNG methodologies
See all LNG methodologies

Products and Services

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See all LNG products and services