SUBSCRIBER NOTE: Platts launches FOB USGC light straight run naphtha assessment

Please note that Platts has launched a light straight run naphtha assessment for parcels loading at US Gulf Coast terminals on an FOB basis effective July 1, 2014. Significant growth in condensate production, a result of liquids-rich gas drilling, has shifted the US from a net importer to a net exporter of naphtha, and light straight run naphtha exports are expected to increase substantially going forward as rising US supplies will continue to overwhelm demand. The assessment will be published as an outright price in cents/gallon and in dollars/metric ton. Platts will use a conversion factor of 4.01 gallons/mt to convert between dollars/metric ton and cents/gallon. Platts will also publish a differential to the Platts non-Targa Mont Belvieu natural gasoline pipeline Month 1 assessment (PMABY05) from the first business day of the month until the 15th of the month and roll it to the Month 2 assessment (AAWUG00) on the first business day after the 15th of the month until the end of the month. The specifications are as follows: maximum 83 API gravity, maximum 250 ppm sulfur, 13 RVP, minimum 65 paraffin content, minimum color of 20, maximum 50 ppm oxygenates, maximum 10 ppb mercury, maximum 50 ppm lead, and maximum 10 ppm H2S. The location of the assessment would be typical terminals on the US Gulf Coast. The assessment will reflect the value of 50,000 barrel parcels loading 10-30 days forward from the date of publication. Other trade sizes and quality may be considered for the assessment, and normalized for size and quality. In the assessment process, Platts will gather bids, offers, and transactional information for the FOB USGC light straight run naphtha market, and will normalize these inputs to 2:15 pm Houston time. 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. Please email additional comments and questions to americas_products@platts.com with a cc to pricegroup@platts.com.