Platts to start assessing US Gulf Coast RVP value

S&P Global Platts will publish two daily assessments reflecting the value of 1 psi RVP for US Gulf Coast gasoline low-octane and high-octane blendstocks with effect from March 30, 2020.

Platts published a proposal note on January 21, which can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/012120-platts-proposes-to-start-assessing-us-gulf-coast-rvp-value.

The new assessments will reflect the value in cents/gal of a 1-psi difference from a given RVP specification. This specification will change through the year on the following schedule (all after blending with 10% ethanol):

1 psi below 14.5 RVP starting the first business day of February until the USGC CBOB assessment moves to 12.5 RVP

1 psi below 12.5 RVP until the USGC CBOB assessment moves to 10 RVP

1 psi below 10 RVP until the last business day of August

1 psi above 10 RVP starting the first business day of September, until the USGC CBOB assessment moves to 12.5 RVP

1 psi above 12.5 RVP until the USGC CBOB assessment moves to 14.5 RVP

1 psi above 14.5 RVP until the last business day of January

For each RVP level, Platts will publish an assessment for low octane and high octane CBOB.

The assessments will be based on market indications regarding octane and RVP values, as well as the observed prices of related gasoline blendstocks.

These new assessments come ahead of the discontinuation of Platts summer US Gulf Coast gasoline supplemental assessments: 7.8 RVP pipeline CBOB (A1), pipeline premium CBOB (D1) and waterborne conventional gasoline (M1), with effect August 31.

This follows the announcement from Colonial Pipeline that it will no longer ship 7.8 RVP CBOB (A1), since Georgia received a US Environmental Protection Agency waiver in October 2019 allowing use of higher RVP fuel in the Atlanta area.

This leaves East Texas, which is not supplied by Colonial Pipeline, as the last remaining 7.8 RVP CBOB region in the southern US.

The main assessments for these and other gasoline grades will not be affected by the discontinuation of the summer supplementals, and will reflect 10 RVP product for CBOB and 9 RVP conventional gasoline during the summer months as usual.

Please send comments or feedback to americas_products@spglobal.com and pricegroup@spglobal.com. 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.