Refined Products, Gasoline

May 06, 2025

Platts adds buyer's option for segregated/fungible batch USGC pipeline unl 87 regular, premium gasoline

HIGHLIGHTS

Buyers have the choice of shipping M, V grade on either segregated or fungible batch

Buyers should ensure a minimum batch size for segregated batches of finished grade gasoline

Batch must be nominated by one business day after A grade scheduling day

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 include an option for buyers to nominate either a segregated or fungible batch of gasoline on Colonial Pipeline, effective May 6, 2025.

The change means buyers of regular unleaded (M grade) or premium (V grade) gasoline in the Platts Market on Close assessment process have until 5 pm CT one business day after the CBOB (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.

The change was first published in a subscriber note on April 28, available here(opens in a new tab), followed by a decision note published May 5, available here(opens in a new tab).

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.

The minimum volume reflected for Platts unleaded 87 regular and premium gasoline pipeline assessments will remain at 25,000 barrels and will not be impacted by this change.

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.