Platts amends CIF Morocco butane assessment net-forward methodology

Platts, part of S&P Global Commodity Insights, has changed the way it assesses CIF Morocco butane cargoes (ABTMA00) to reflect a net-forward from the waterborne FOB USGC Butane assessment, effective April 24.

Platts has changed the calculation for its net-forward CIF Morocco butane cargoes assessment by applying the Platts daily freight assessment reflecting the cost of transporting a 44,000 mt LPG cargo from Houston to Mohammedia (LPHMA00) to the waterborne FOB USGC Butane assessment in $/mt (ABTNB00), plus a price normalization between the Houston and London Market on Close assessment process timestamps reflected by the change in front-month ICE Brent.

The assessment was previously calculated as a freight net-forward from the second month butane assessment at the Enterprise Mont Belvieu facility (AAWUF00).

The change to using the waterborne USGC butane assessment aims to better reflect a substantial increase in observed FOB US Gulf Coast butane trading activity and export terminal capacity since 2016, according to US Energy Information Administration data.

The Houston-Mohammedia freight component continues to be derived from the Houston-Flushing 44,000 mt freight assessment (AAXIQ00), adjusted to account for the difference in delivery location.

The Butane CIF Morocco assessment continues to reflect a specification in line with the Platts Mont Belvieu butane assessments. It reflects refrigerated cargoes with a minimum size of 44,000 mt for delivery 45-60 days from the date of publication, with value reflecting the mean of the delivery period, into Mohammedia, Morocco.

The launch follows a decision published March 30 available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/033023-platts-to-amend-cif-morocco-butane-assessment-net-forward-methodology Please send any comments or feedback to europe_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