Platts proposes to amend WTI Midland pipeline provenance standard

S&P Global Platts is proposing to amend its pipeline provenance standard for WTI Midland crude cargoes and all related assessments to allow for crude supplied by one or more designated pipelines, effective July 15.

Currently, Platts WTI Midland assessments reflect oil loading from only one of the following crude pipelines: BridgeTex, Longhorn, Midland-to-Echo I/II, EPIC, Gray Oak, Cactus I/II and Permian Express. Additionally, all WTI Midland cargo assessments also reflect crude that meets Platts WTI Midland quality specifications, available here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/080620-platts-implements-comprehensive-platts-wti-midland-specifications

However, since the implementation of pipeline provenance as a way to ensure the origin and quality of WTI Midland crude, several US Gulf Coast terminals have established multiple connections to pipelines directly from the Permian Basin to the Gulf Coast, and it has become increasingly common for oil originating from more than one pipeline to be co-mingled in tank at some marine terminals. Platts has received feedback that this crude continues to be widely recognized as WTI Midland by both buyers and sellers in the broader market, and continues to otherwise meet Platts WTI Midland specification guidelines.

Under this proposal, Platts WTI Midland cargo assessments would reflect WTI Midland loading from one or more of the designated pipelines from the same terminal, provided it continues to meet Platts WTI Midland quality specifications. Platts believes that this proposal will better reflect changing transportation and storage logistics in the Gulf Coast and standard market practices. This proposal does not include WTI crude loading from multiple terminals and then co-mingled in storage.

This methodology change would apply to Platts AGS (AGSAA00), WTI Midland DAP Rotterdam (AWTIC00), WTI Midland DAP Augusta (AWTIA00), WTI Midland FOB Scapa Flow (AWTIE00), WTI Midland DES Singapore (WTMSA00), WTI Midland DES Yeosu (WTMYA00), and all associated differentials and averages.

Please send all feedback, comments or questions to americas_crude@spglobal.com and pricegroup@spglobal.com by June 4. 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.