Platts proposes segregated/fungible batch option for USGC pipeline unl 87 regular, premium gasoline

Platts, part of S&P Global Commodity Insights, is proposing to change the methodology for its US Gulf Coast unleaded 87 regular and premium gasoline pipeline assessments to allow buyers the option of nominating either a segregated or fungible batch of gasoline, effective May 6, 2025.

The proposed change would mean buyers of regular unleaded (M grade) or premium (V grade) gasoline in the Platts Market on Close assessment process would have until 5 pm CT one business day after the M grade scheduling date to inform the seller of their choice to move the barrels on either a segregated or fungible batch on the relevant Colonial Pipeline cycle.

The proposed change follows a new requirement from Colonial, in effect since April 1, that states shippers intending to take M or V grade off the pipeline upstream of Meridian, Mississippi, must move the product in a segregated batch meeting Colonial's new minimum batch size requirement.

Platts is not proposing to alter the minimum volume of 25,000 barrels of its unleaded 87 regular and premium gasoline pipeline assessments. Platts understands from market feedback that it is common practice for sellers to change origins and for buyers to shift from fungible/segregated batches, as mutually agreed by counterparties and in line with Colonial rules and capability.

The proposed change would apply to existing eWindow instruments used in the MOC. Therefore, for a trade reported under an "M2" eWindow instrument, the buyer may nominate M2 or 2M in line with the proposed editorial guidelines and Colonial's shipping rules.

Please send all comments, feedback, and questions to americas_products@spglobal.com, pricegroup@spglobal.com and market_integrity_review@spglobal.com by May 2, 2025.

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.