SUBSCRIBER NOTE: Platts extends review of Colonial Pipeline jet, heating oil assessments

S&P Global Platts is extending a consultation period seeking feedback on its US refined product assessments that could be affected by the possible elimination of high sulfur jet fuel and heating oil shipments on Colonial Pipeline in January 2018.

Platts invites comments, suggestions, questions and other feedback on the future of these assessments by May 31, 2017. This timetable could be altered in the event of any significant development in the intervening period.

In the interim, Platts will continue all current assessments on Colonial Pipeline.

Platts opened the formal review of the assessments concerned on October 14, 2016, days after Colonial announced its intention to stop shipping any products with a sulfur content of more than 500 ppm in January 2018.

The initial review period closed in November 2016, and Platts is now extending this as a result of a subsequent announcement by Colonial Pipeline on December 16, 2016, that it may delay the planned phaseout of high sulfur jet fuel and heating oil shipments.

In its December announcement to shippers, Colonial said it was inviting formal proposals from companies interested in buying the high sulfur interface between product grades, commonly known as transmix. If shippers prove willing to buy the transmix, this could allow the pipeline company to revise its plans to stop transporting high sulfur jet fuel and heating oil.

Platts continues to seek further feedback as to how and if these products should be assessed in the event that there is no underlying physical trade. For example, Platts could employ price information from related markets to arrive at a calculated assessment.

If implemented, Colonial's planned phaseout of high sulfur products would include 54 grade (jet) and 70, 71, 77 and 88 grades (high-sulfur heating oil). In October, the pipeline said shipments of low sulfur products, such as low sulfur heating oil (75 grade and 85 grade) and low sulfur kerosene (55 grade), would continue.

The following Platts assessments reflect product currently moving on Colonial Pipeline that would be affected by the proposal:

US Gulf Coast Jet Kero 54 USGC prompt pipeline PJABO00 Jet Kero 54 USGC pipeline Cycle 01 AAELQ00 Jet Kero 54 USGC pipeline Cycle 02 AAELR00 Jet Kero 54 USGC pipeline Cycle 03 AAELS00 Jet Kero 54 USGC pipeline Cycle 04 AAELT00 Jet Kero 54 USGC pipeline Cycle 05 AAELU00 Jet Kero 54 USGC pipeline Cycle 06 AAELV00

Gasoil No. 2 USGC prompt pipeline POAED00 Gasoil No. 2 USGC pipeline Cycle 01 AAELW00 Gasoil No. 2 USGC pipeline Cycle 02 AAELX00 Gasoil No. 2 USGC pipeline Cycle 03 AAELZ00 Gasoil No. 2 USGC pipeline Cycle 04 AAEMA00 Gasoil No. 2 USGC pipeline Cycle 05 AAEMB00 Gasoil No. 2 USGC pipeline Cycle 06 AAEMC00

US Atlantic Coast Jet kero 54 USAC Linden pipeline prompt AAXPV00

Please send all comments, feedback and questions to americas_products@spglobal.com and pricegroup@spglobal.com.

Platts will study all feedback and provide an update on any possible changes to its methodology after the close of the review period. 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.