Platts to launch FOB assessments for Trans Mountain Pipeline expansion

Platts, part of S&P Global Commodity Insights, will launch daily assessments, effective April 22, for Pacific Dilbit and Low TAN Dilbit crude for loading FOB Westridge in anticipation of the Trans Mountain Pipeline expansion.

Platts is launching these assessments ahead of TMX's operation in order to bring transparency to this emerging market. Platts understands this market is still forming and invites feedback on the below methodology as these markets evolve.

Trans Mountain is targeting an in-service date in the second quarter of 2024 for its 590,000 b/d Trans Mountain Expansion crude oil project in Western Canada. It is an expansion of the existing 300,000 b/d Trans Mountain Pipeline, which moves crude and refined products from Edmonton, Alberta, to the Westridge marine export facility at Burnaby, British Columbia.

The Pacific Dilbit and Low TAN Dilbit assessments will reflect the value of High TAN and Low TAN crude respectively, loading on an FOB basis at the Westridge terminal.

The assessments will appear in Platts services as FOB Westridge Pacific Dilbit and FOB Westridge Low TAN Dilbit, respectively. They will be published as outright prices in US Dollars/barrel and Canadian dollars/cubic meter, as well as differentials to the ICE Brent settle and the WTI CMA during the month of loading.

QUALITY: The quality of the Pacific Dilbit and Low TAN Dilbit will meet the specifications of those pools as outlined by TMX. The quality of the Pacific Dilbit assessment will typically align with Access Western Blend quality fuel, and it will have a minimum TAN of 1.3 mgKOH/g. The Low TAN Dilbit assessment will typically align with Cold Lake quality fuel, and it will have a maximum TAN (Total Acid Number) of 1.3 mgKOH/g.

VOLUME: Typical cargo size will be 550,000 barrels.

PRICING BASIS: Platts understands spot physical trading for FOB cargoes will typically occur two months in advance of loading. Platts will begin publishing its Pacific Dilbit and Low TAN Dilbit assessments as a differential to the ICE Brent settle and the WTI CMA during the month of loading.

Platts' assessments will reflect loadings in the second calendar month forward from the first publishing day of each month. For example, on May 1, when Platts begins its assessment for July loadings, the assessments will be published as a differential to July ICE Brent calendar month average ( CMA). The July ICE Brent CMA would reflect September ICE futures.

The value will also be published against the WTI CMA for the same month. In the example above, the July WTI CMA would be calculated as a weighted average of the August and September futures.

In the absence of bids, offers, and trades, Platts may assess the crudes based on spreads to comparable grades. Platts may also use market information provided on a delivered basis to inform these FOB assessments.

The new assessments will be available on Platts Global Alert pages 210, 211, 230, 231, 232 and 233. They will be published in Crude Oil Marketwire, North America Crude and Product Scan and Oilgram Price Report.

Please send any comments or feedback to americas_crude@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.