SUBSCRIBER NOTE: Platts proposes change to USGC blendstock laycans, delivery basis, and specifications

S&P Global Platts is proposing to change its assessment specifications for US Gulf Coast blendstock barge assessments, relating to laycans, delivery basis for all blendstocks, as well as specifications for alkylate and reformate, with effect from July 1, 2019.

Platts understands that the blendstocks market has evolved in recent years to reflect more prompt laycans as well as a shift in trading basis from loading to delivering. Alongside this, Platts has observed an increase in transparency around blendstocks specifications. Platts proposes to update its assessments to reflect these points.

ASSESSMENT DELIVERY BASIS: Platts is proposing to change the assessed delivery basis for USGC alkylate, reformate and raffinate barges to a CIF basis based on feedback from market sources. The current methodology reflects an FOB basis.

ASSESSMENT LAYCAN: In addition, Platts is proposing to change the assessed laycan of its USGC alkylate, reformate and raffinate barge assessments to 3-15 days forward, compared with 5-15 days days forward currently. Any bids, offers or trades outside of the assessed specifications or laycans may be normalized for assessment purposes.

ALKYLATE SPECIFICATIONS: Platts is proposing to change the specification for its USGC alkylate barges to reflect product with an RVP of 4-6 psi, compared with a maximum RVP of 5.5 psi currently. The octane level will remain unchanged at 92-93 (R+M)/2. Product specifications will be normalized to reflect value for a 92 (R+M)/2 and 5 RVP barge for the assessment.

REFORMATE SPECIFICATIONS: Platts is proposing to change the specification of its USGC reformate barge assessment to reflect product with an octane of 98-102 (R+M)/2 and an RVP of 1-3 psi, compared with current specifications of 95-110 (R+M)/2 octane and 0.5-2.5 psi. Product specifications will be normalized to reflect value for a 100 (R+M)/2 and 1 RVP barge for the assessment.

Separately, Platts is also reviewing its raffinate specifications and may propose changes at a later date.

Please send all comments, feedback and questions by June 3, 2019, to oilgroup@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.