Platts to change basis for USGC naphtha, blendstocks

Platts is seeking comment on a proposal to change the basis for valuing its US Gulf Coast reformer-grade naphtha and gasoline blendstock assessments from waterborne gasoline to pipeline gasoline. Currently, USGC reformer-grade naphtha, alkylate, reformate, and raffinate are assessed as a differential to USGC low octane (87 M) waterborne gasoline.

Typical market practice in the USGC has shifted, and naphtha and gasoline blendstocks are now more commonly trades as a differential to USGC low octane (87 M) Colonial pipeline gasoline.

This change would affect barge and cargo assessments for naphtha, heavy naphtha, as well as alkylate, reformate, raffinate.

Platts publishes its USGC alkylate, reformate, and raffinate assessments as a differential, but its naphtha and heavy naphtha assessments are published as an outright price.

Under this proposal, Platts would calculate the underlying value of USGC 87 pipeline gasoline to line up with the 5 to 15 days forward timing for its naphtha assessments, rather than using a prompt pipeline cycle alone as the basis.

These assessments appear in Platts Global Alert, Platts Oilgram Price Report, US Marketscan and on Platts Dispatch.

Platts is proposing to make these changes effective October 3, 2011.

Please provide feedback or submit questions by September 1, 2011, to americas_products@platts.com and pricegroup@platts.com.