Platts to allow buyers to nominate segregated/fungible batch for USGC pipeline unl 87 regular, premium gasoline MOC deals

Platts, part of S&P Global Commodity Insights, has changed 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 on deals reported in the Platts Market on Close assessment process, with effect from May 6, 2025.

The proposal was first published in a subscriber note April 28, available here(opens in a new tab).

The change would allow buyers of regular unleaded (M grade) or premium (V grade) gasoline in the MOC until 5 pm CT one business day after the A 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.

According to feedback received on the initial proposal, the most common market practice is to consider the CBOB (A grade) schedule as a reference for any other grade nominations.

The 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 requirements.

Platts has not proposed 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 while sellers have the right to nominate origins, 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.

Buyers nominating a segregated batch should ensure they meet Colonial's new minimum batch size requirements for loading at the same location.

The new change applies 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 Platts methodology and Colonial's shipping rules.

Please send any comments or questions to americas_products@spglobal.com, pricegroup@spglobal.com and market_integrity_review@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.