SUBSCRIBER NOTE: Platts proposes updates to Europe LPG large cargo assessments

Following an extensive review with market participants, Platts proposes a number of changes to its large refrigerated propane and butane cargo assessments in Europe.

These changes would be effective from January 3, 2017.

Under these changes Platts would standardize the names of these assessments across all publications, formalize basis locations and update reflected volumes.

NAMES OF ASSESSMENTS: Platts currently describes its large refrigerated cargo assessments as 7000+ MT (for propane) and 3kt+ (for butane) in most publications and also as Large Cargo in others. Platts proposes to standardize these to Large Cargo. A full table of affected assessments follows.

VOLUME ASSESSED: Platts also proposes changes to the volume under assessment, from a maximum delivered volume (inclusive of operational tolerance) of 20,000 mt to 23,100 mt for propane, and to reflect full or part cargoes. The current standard reflects only full cargoes. Platts will continue to reflect a minimum delivered volume of 8,500 mt. For butane, Platts proposes to change the volume under assessment, from a minimum of 4,000 mt plus or minus 5% tolerance to a volume range of between 8,000-12,000 mt plus or minus 5%, and to reflect full or part cargoes. The current standard reflects only full cargoes.

DELIVERY BASIS: Under this proposal, Platts would also reflect a basis port of Flushing, Netherlands for CIF propane large cargoes and Rotterdam, Netherlands, for CIF butane large cargoes. Platts would continue to reflect deliveries to relevant ports in Northwest Europe with values normalized to Flushing for propane and Rotterdam for butane. The current standard for both propane and butane reflects an area represented by a triangle with Wilhelmshaven, Germany, Teesside, UK, and Le Havre, France, as its three corners.

Platts welcomes feedback and questions to europe_products@platts.com, with a cc to pricegroup@platts.com. The consultation period will run until July 29, 2016. For written comments, please provide a clear indication if the 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.

Table of affected assessments: CODE CURRENT NAME NEW NAME PMABA00 Propane CIF NWE 7000+ MT Propane CIF NWE Large Cargo PMUEE03 Propane CIF NWE 7000+ MT Mavg Propane CIF NWE Large Cargo Mavg AABEY00 Propane CIF NWE 7000+ MT Wavg Propane CIF NWE Large Cargo Wavg PMAAK00 Butane CIF NWE 3kt+ Butane CIF NWE Large Cargo PMUDY03 Butane CIF NWE 3kt+ Mavg Butane CIF NWE Large Cargo Mavg AABES00 Butane CIF NWE 3kt+ Wavg Butane CIF NWE Large Cargo Wavg