SUBSCRIBER NOTE: Platts to add Japan Onishi waterborne oil product assessments

S&P Global Platts will start publishing new assessments reflecting the value of waterborne cargoes on a FOB Onishi basis for gasoline, kerosene, gasoil, high sulfur A-fuel and low sulfur A-fuel, in addition to its current assessments for Tokyo Bay, Chukyo and Hanshin for the same products. Platts originally proposed these assessments in a subscriber note published on March 8.

Platts will launch these assessments with effect from May 11, 2017.

SPECIFICATIONS: Platts will reflect the same specifications for Onishi waterborne assessments as those that are currently in place for Tokyo Bay, Hanshin and Chukyo, reflecting oil products conforming to the latest Japanese Industrial Standard specifications, as published by the Japanese Industrial Standards Committee at www.jisc.go.jp/app/JPS/JPSO0020.html, except where otherwise noted.

Platts Japan low sulfur A-fuel oil 0.1% assessments would reflect standard Japanese Industrial Standard, JIS K 2205 (Class 1 No. 1) specifications, with the exception of the sulfur content, which would be maximum 0.1%.

Platts Japan high sulfur A-fuel oil 1.0% assessments would reflect standard Japanese Industrial Standard, JIS K 2205 (Class 1 No. 2) specifications, with the exception of the sulfur content, which would be maximum 1.0%.

These assessments would follow Platts Market on Close price assessment principles, reflecting a timestamp of 15:30 Tokyo time. Fully transparent published bids, offers and transactions would be given priority during the assessment process.

Platts assessments would be published in Yen/kiloliter, and would follow the Platts Tokyo publishing schedule, which reflects Japan's national holidays as well as global market holidays.

TIMINGS: Assessments will be published in two laycans, Laycan 1 (LC1) and Laycan 2 (LC2), the same as for the current assessments for the waterborne assessments for Tokyo Bay, Hanshin and Chukyo.

LC1: Day 1-10: H1 of current month LC1: Day 11-25: H2 of current month LC1: Day 26-end of month: H1 of next month

LC2: Day 1-10: H2 of current month LC2: Day 11-25: H1 of next month LC2: Day 26-end of month: H2 of next month

LOCATIONS: For Onishi, oil products on barges loading from the following refineries would be considered for inclusion in the assessment process: Taiyo Oil Shikoku Operations, JX Marifu Refinery, Seibu Oil Yamaguchi Refinery, and JX Oita Refinery.

VOLUME: Transactions, bids and offers of a minimum of 500 kiloliters are considered for assessment. The maximum parcel size for any one bid or offer is 2,000 kiloliters.

NOMINATION: Platts Japan domestic oil product assessments would reflect bids, offers and transactions where the buyer commits to load the contractual volumes as per the agreed volume at the time of the trade, where the quantity delivered to a buyer is measured in line with the typical practice established at the nominated loading point. The buyers must give reasonable notice of the intended loading date and provide necessary barge details in line with standard industry practice and the seller must respond in a timely manner with nomination of the load point.

Confirmed trades, bids and offers reported throughout the day would be included in the assessment process, with values normalized towards representative values for the close of the market as needed. Platts editorial standards for the Market On Close assessment process for Japan fuel oil, gasoil, gasoline and kerosene calls for best practices in all aspects of operational performance, including terminal and barge nominations.

If any comments and questions, please send an email to asia_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.