SUBSCRIBER NOTE: Platts proposes to reflect pipeline provenance in DAP Europe WTI Midland

In light of recent market feedback, S&P Global Platts proposes to reflect crude supplied via the BridgeTex, Cactus, Longhorn or Midland-ECHO US pipelines in its Delivered at Place (DAP) WTI Midland basis Rotterdam and Augusta crude oil assessments effective July 1, 2019.

Currently, Platts assessments of DAP WTI Midland in Europe reflect crude of standard WTI Midland quality exported from the US Gulf Coast, which reflects a consistent grade sourced from the Permian Basin.

Under this proposal, Platts DAP Europe WTI Midland assessments would specifically reflect crude supplied via the BridgeTex, Cactus, Longhorn or Midland-ECHO pipelines.

Platts understands that the BridgeTex, Cactus, Longhorn and Midland-ECHO lines are all direct pipelines from the Permian Basin to US Gulf Coast export terminals. All four pipelines operate under specification limits that ensure consistent Midland-grade quality.

Platts would continue to accept bids and offers for WTI Midland supplied via other pipelines, but such provenance would need to be explicitly stated in the bid or offer. These may be normalized to reflect standard quality supplied via one of the four pipelines listed above.

Crude oil supplied for trades reported in the Platts Market on Close assessment process should not contain any previously cracked or refined material.

Platts would not publish bids that restrict supply to a specific terminal or pipeline. Platts publishes open origin bids in which buyers are willing to accept any material that meets their specification requirement.

Please send all questions and comments to europe_crude@spglobal.com and pricegroup@spglobal.com by May 31.

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.