OPIS Introduces the Carbon Offset NGL/LPG Index
Rockville, MD – September 11, 2023 – OPIS, a Dow Jones company, is pleased to announce the launch of its Carbon Offset NGL/LPG Index. This index is designed to incorporate OPIS’s globally recognized exchange-listed NGL benchmarks into a Net Zero Emissions (NZE) framework. By integrating our benchmark NGL prices with OPIS Core Carbon Credits (CCP), stakeholders will now have the ability to include carbon offset pricing in their daily NGL pricing calculations.
The renewable propane market currently faces a significant challenge due to the lack of liquidity. Limited availability and undisclosed formulas make it difficult for market participants to accurately assess the true costs of offsetting propane’s carbon footprint. In response to this industry need, OPIS has developed the Carbon Offset NGL/LPG Index, which empower stakeholders to evaluate and hedge the cost of offsetting propane’s carbon impact. This innovative solution enables informed decision-making regarding pricing risk and fosters a greener and more sustainable future.
Our pioneering indices provide precise pricing information for NGLs, including propane, butane, and ethane, while incorporating carbon credits. By focusing on propane, butane, and ethane pricing at Mont Belvieu and FOB Arab Gulf, OPIS offers a comprehensive framework for establishing the cost of offsetting carbon footprints. This empowers companies to calculate and evaluate investments in purchasing offsets and investing in projects that generate offsets, while promoting transparency in costs across the entire value chain.
Our solution serves as a valuable tool for various sectors within the industry, ranging from producers and processors to fractionators, storage operators, petrochemical manufacturers, traders, shippers, wholesalers, retailers, and the financial backers who support the industry. It offers an innovative approach to managing price risks and provides a fresh avenue for risk mitigation.
OPIS is committed to driving positive change within the energy industry and addressing the urgent global need to reduce carbon emissions. The launch of the Carbon Offset NGL/LPG Index represents a significant step towards a more sustainable future and provides a valuable tool for market participants to navigate the evolving landscape of carbon offset pricing.
OPIS, a Dow Jones company, provides accurate pricing, real-time news and expert analysis across the global fuel supply chain, including the Spot, Wholesale Rack and Retail markets. OPIS and its brands, McCloskey, PetroChem Wire, Axxis and Chemical Market Analytics, enable customers to buy and sell energy commodities with confidence across the globe via easy access to transparent data, expert-level customer support, educational events and energy data solutions.
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