Platts updates proposal for WTI pipeline, cargo assessment specifications

S&P Global Platts is updating its proposal to amend its WTI pipeline and cargo assessments' methodologies to include "Platts WTI Midland" specifications described below, and postponing implementation until August 5, with feedback accepted through July 31.

In addition, Platts is also proposing to reflect the specifications outlined below in its American GulfCoast Select assessment, which was launched June 26.

Any crude delivered as a result of published bids or offers in the Platts AGS Market on Close assessment process would have to meet these specifications.

The specifications would apply to the methodology for these assessments: Platts AGS (Platts symbol: AGSAA00), WTI Midland (PCACJ00), WTI Midland Month 2 (AAYZA00), WTI MEH (AAYRG00), WTI MEH Month 2 (AAXXE00), WTI FOB USGC (AAYBA00), WTI Midland DAP Rotterdam (AWTIC00), WTI Midland DAP Augusta (AWTIA00), WTI Midland FOB Scapa Flow (AWTIE00), WTI Midland DES Singapore (WTMSA00), and WTI Midland DES Yeosu (WTMYA00).

Platts understands the Platts WTI Midland specifications proposed here provide the framework for a globally accepted WTI crude stream that is representative of a significant proportion of direct-from-Permian supply while meeting the needs of most refineries in typical US light, sweet crude export destinations.

For the global cargo assessments, including Platts AGS, these specifications would be in addition to the existing pipeline provenance requirement, which stipulates that the assessment reflects unblended, uncracked crude transported from the Permian to the Gulf Coast on BridgeTex, Longhorn, Midland-to-ECHO I/II, Cactus I/II, EPIC, Gray Oak, or Permian Express.

With this change, crude would have to originate from one of these pipelines in addition to meeting the new specifications.

Platts WTI Midland specifications would be:

Sulfur: 0.2% or less by weight as determined by ASTM Standard D-4294;

Gravity: Not less than 40 degrees American Petroleum Institute (API), nor more than 44 degrees API as determined by ASTM Standard D5002;

Mercaptans: 75 parts per million (ppm) or less as determined by ASTM Standard UOP-163;

Iron: 10 ppm or less as determined by ASTM Standard D5708 Method B;

Vanadium: 2 ppm or less as determined by ASTM Standard D5708 Method B;

Nickel: 2 ppm or less as determined by ASTM Standard D5708 Method B;

Reid vapor pressure: Less than 9.5 pounds per square inch at 100 degrees Fahrenheit as determined by ASTM Standard D6377;

Basic Sediment, water and other impurities: Less than 1% as determined by ASTM Standard D4007;

High-Temperature Simulated Distillation (HTSD) as determined by ASTM Standard D7168:

20% Point by HTSD: 225 deg F - 275 deg F

50% Point by HTSD: 485 deg F - 535 deg F

Vacuum Residuum 1020 deg F by HTSD: not more than 12% by mass

Platts recognizes that the WTI crude stream continues to evolve as existing reservoirs are depleted and as producers move to new acreage.

Platts will monitor reported quality data in addition to gathering market feedback to ensure these specifications continue to reflect a globally relevant, fungible WTI stream that balances supply availability with buyer requirements.

Future specification changes are possible following a proposal and feedback period.

Please send any comments or feedback on this proposal by July 31 to americas_crude@spglobal.com and pricegroup@spglobal.com.

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.