SUBSCRIBER NOTE: Platts to amend basis for delivered USGC naphtha to DAP

S&P Global Platts will amend the contract basis reflected in its delivered US Gulf Coast standard naphtha and heavy naphtha assessments to Delivered At Place, or DAP, from the current Cost, Insurance and Freight, or CIF, starting April 3, 2017.

This follows feedback to a proposal note published October 14, 2016, suggesting a change of terms from CIF to DES, or Delivered Ex-Ship, and an updated proposal note, published January 12, 2017, suggesting the change in terms from CIF to DAP.

The proposal was published following observations from participants in the Gulf Coast naphtha market as well as observed market indications that suggested most trade of these products is now conducted on a DAP basis rather than on a CIF or DES basis.

The updated proposal note can be found at http://www.platts.com/subscriber-notes-details/21587847. Feedback received has also indicated that trades on a DAP basis are generally at parity with trades on a CIF basis.

The proposed change will affect the USGC heavy naphtha and standard naphtha barge flat price assessments, as well as the associated differentials against the waterborne USGC conventional gasoline assessment.

The affected assessments are:

Assessment Code Monthly average Heavy naphtha barge AALPI00 AALPJ00 Heavy naphtha barge AASHD00 AASHD03 vs USGC waterborne Standard naphtha barge AALPG00 AALPG03 Standard naphtha barge AASGZ00 AASGZ03 vs USGC waterborne

Under DAP agreements, title for a given product passes to the buyer at the destination at the time at which the product is ready for unloading.

The seller pays all the costs of transportation up to and including the delivery of the goods to the final named destination.

For further questions or comments, please email americas_products@spglobal.com, with a cc to 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.