SUBSCRIBER NOTE: Platts changes USGC blendstock laycans, delivery basis, specifications

S&P Global Platts has changed its assessment specifications for US Gulf Coast blendstock barge assessments, relating to laycans, delivery basis for all blendstocks, as well as specifications for alkylate and reformate, with effect from July 1, 2019.

This change follows a proposal note published on May 1, 2019. The original proposal can be found online at https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/050119-pl atts-proposes-change-to-usgc-blendstock-laycans-delivery-basis-and-specificati ons.

Platts understands that the blendstocks market has evolved in recent years to reflect more prompt laycans as well as a shift in trading basis from loading to delivering. Alongside this, Platts has observed an increase in transparency around blendstocks specifications. Platts is updating its assessments to reflect these points.

ASSESSMENT DELIVERY BASIS: Platts has changed the assessed delivery basis for USGC alkylate, reformate and raffinate barges to a DAP basis, based on market feedback. The current methodology reflects an FOB basis.

ASSESSMENT LAYCAN: Platts has changed the assessed laycan of its USGC alkylate, reformate and raffinate barge assessments to 3-15 days forward, compared with 5-15 days days forward currently. Any bids, offers or trades outside of the assessed specifications, delivery basis, or laycans may be normalized for assessment purposes.

ALKYLATE SPECIFICATIONS: Platts has changed the specification for its USGC alkylate barge assessment to reflect product with an RVP of 4-6 psi, compared with a maximum RVP of 5.5 psi currently. The octane level remains unchanged at 92-93 (R+M)/2. Product specifications will be normalized to reflect value for a 92 (R+M)/2 and 5 RVP barge for the assessment.

REFORMATE SPECIFICATIONS: Platts has changed the specification of its USGC reformate barge assessment to reflect product with an octane of 98-102 (R+M)/2 and an RVP of 1-3 psi, compared with current specifications of 95-110 (R+M)/2 octane and 0.5-2.5 psi. Product specifications will be normalized to reflect value for a 100 (R+M)/2 and 1 RVP barge for the assessment.

Separately, Platts is also reviewing its raffinate specifications and may propose changes at a later date.

For further feedback, please send a message to oilgroup@spglobal.com and pricegroup@spglobal.com.

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