Platts proposes to change purity of ETBE FOB AR assessment

S&P Global Platts is proposing to change its European ETBE purity specification, introducing a lower minimum purity of 90% while reflecting pricing of a higher 100% purity in its ETBE FOB AR assessment and Market on Close assessment process, with value adjusted post-trade for purity on loading using a de-escalator formula.

The proposed changes would take effect on June 30, 2021.

Under this proposal, bids, offers and trades in the Platts MOC would reflect the value of 100% ETBE purity while the purity on loading would be minimum 90% ETBE and minimum 95% ethers. Percentage price adjustments for purity post trade would be based on the following formula: ETBE FOB AR flat price (AASLQ00) = MTBE FOB ARA (PHALA00) +(ETBE premium (AASLQ02) x % purity).

Due to the differing ETBE purity in tanks ahead of loading, price adjustments for purity would be based on the ETBE formula at the time of load, and not at the time of trade.

The Platts ETBE assessment currently reflects material with a minimum purity of 95%.

Platts opened a consultation on its European ETBE assessments on Sept. 9, 2020. The consultation was extended on Oct. 12, 2020 in a subscriber note available here: https://bit.ly/3n5cRQF

This proposal is the second to emerge from the ETBE consultation and follows a decision to specify maximum carbon intensity instead of minimum greenhouse gas savings. Details are available here: https://bit.ly/38X7FbP

Platts ETBE assessments appear on Platts Biofuels Alert pages 1420, 1010, 1011, and 1012, in the Biofuelscan and Fuel Ethanol Report publications, and in

Platts Market Data under the following codes: AASLQ00, AASLQ02, AASLQ01, AASLQ04, AASLQ03, AASLQ13.

Platts invites feedback on the proposal to petchems@spglobal.com and pricegroup@spglobal.com by Feb. 5, 2021.

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 to the public upon request.