SUBSCRIBER NOTE: Updated schedule change for Platts USGC 93 octane gasoline assessment

Following an announcement by Colonial Pipeline May 30 that it was rolling back plans to reduce the number of shipping cycles for US Gulf Coast 93-octane conventional gasoline (V grade), S&P Global Platts confirms it will continue to assess the most prompt available cycle.

Through cycles 37 to 49, Colonial Pipeline will only be shipping V grade on alternate cycles. From the 50th cycle, expected in early September, it will ship the grade on consecutive cycles.

This means that Platts V grade assessments will reflect alternate cycles over the first period. After the 37th cycle passes its scheduling date, expected to be in late June, the Platts V grade assessment will move to the 39th cycle, while all other Platts assessments for Colonial Pipeline gasoline grades will reflect product shipping on the 38th cycle. Once the 39th cycle schedules, the V grade assessment will move to the 41st cycle, and so on.

Once the 49th cycle passes its scheduling date, the Platts V grade assessment will move to the 50th cycle, and then the 51st cycle and consecutive cycles thereafter, in line with all other Platts assessments for Colonial Pipeline gasoline grades.

Colonial announced May 11 that it would ship V grade gasoline on alternate cycles with effect from the 37th shipping cycle, due to falling volumes of the grade being shipped on the pipeline, with some deliveries being constrained by physical limitations due to the low volumes. Colonial had said then that if the move to alternate cycles did not alleviate this problem, it would be required to eliminate all V grade shipments.

However, following feedback from shippers, Colonial announced May 30 that it would resume shipment of V grade gasoline from cycle 50 onwards, expected to be sometime in early September. Shipments of V grade gasoline would remain on alternate cycles from the 37th cycle to 49th cycle, it added. Colonial ships in 72 cycles a year.

The change to V grade cycles on the pipeline also impacts the Platts assessment for USGC unleaded 89 octane gasoline, as this is typically assessed from the M and V grade assessments. As a result, the 89 unleaded assessment will reflect the value of product on the same pipeline cycle as the V grade assessment.

The assessments affected by this change, which are published on Platts Global Alert page 330, in US Marketscan and in the Platts price database, are the following:

USGC Unleaded 89 PGAAY00 USGC Unleaded 93 PGAJB00

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