Platts seeks feedback on Russian material in Asian LPG assessments

Platts, part of S&P Global Commodity Insights, is seeking feedback on whether Russian material is part of the open spot market reflected in its Asia and Middle East Propane and Butane assessments.

This consultation by Platts is driven by observation that an increasing number of market participants in Asia are already restricting Russian-origin LPG in their spot trading activity in recent months.

In addition, market feedback to Platts' consultation which concluded Feb, 14 on the origin basis of its gasoline assessments in Asia and the Middle East highlighted that companies are increasingly stipulating that they will not trade Russian gasoline blending components used in making the end-user grade of gasoline traded, in the Asian market: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/021423-platts-no-longer-includes-russia-as-potential-origin-source-in-asia-middle-east-gasoline .

Platts has further observed that there has not been any significant flow of Russian-origin LPG into Asia and Middle East in 2023. However, there are concerns from market participants about potential new flows from Russia to Asia after the EU sanctions on Russian oil products came into force on Feb. 5, 2023.

Platts is therefore seeking immediate feedback on whether its CFR North Asia, CFR China, CFR Taiwan and FOB Arab Gulf Propane and Butane refrigerated cargo assessments, and the smaller regional pressurized LPG assessments should continue to include Russian-origin material. Unless otherwise stated, Platts assessments in these markets currently reflect an open origin basis, which includes potential supply from Russia. All Platts assessments reflect merchantable commodities.

Platts Propane and Butane refrigerated cargo assessments in Asia include CFR North Asia (AAVAK00, AAVAL00, AAVAM00, AAVAN00, AAVAO00, AAVAP00, AASGO00, AASGP00, AASGQ00), FOB Arab Gulf (PMUDM00, PMUDR00), CFR China (AABAK00, AABAU00), and CFR Taiwan (AABAN00, AABBH00).

Russian-origin product has already been excluded from Platts benchmark cargo price assessments for naphtha, gasoil, jet fuel and gasoline in Asia, as well as from all refined product assessments in Europe.

In a subscriber note published June 23, 2022, Platts clarified the origin standards reflected in assessments that exclude Russian-origin material. In the note, Platts stated that its assessments that exclude Russian-origin material reflect oil that is not wholly, or in part, produced, manufactured, or processed in Russia, or exported from Russia. These assessments also reflect transactions where the performing vessels are not Russian-flagged/registered or Russian-owned. The subscriber note can be reviewed at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material.

Please send all feedback, questions, or comments to asia_products@spglobal.com and PriceGroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available to the public upon request.