Platts to launch FOB USGC butane cargo, derivatives assessments Sept 1

As part of its commitment to provide insight into growing markets, S&P Global Platts will launch new USGC butane cargo and derivatives assessments, as well as split butane/propane LPG cargo assessments, effective Sept. 1, 2021.

US Gulf Coast butane exports have tripled since 2016 as LPG export terminal capacity has increased, adding to already substantial propane exports. USGC butane exports averaged 352,000 b/d in 2020 compared with 110,000 b/d four years earlier, heading to key destinations such as Indonesia, Japan, South Korea and Morocco, according to US Energy Information Administration data. Additionally, recent terminal upgrades on the Gulf Coast have allowed higher butane loading rates, making split cargo loadings more efficient.

Platts will launch FOB US Gulf Coast butane cargo assessments as well as FOB USGC LPG cargo assessments based on an even split of propane and butane. The new prices will reflect 44,000 mt cargoes loading on Very Large Gas Carriers out of US Gulf Coast terminals 30-45 days forward. These assessments will complement existing FOB USGC propane cargo assessments. Platts will publish the daily cargo assessments as outright prices as well as waterborne premiums to Mont Belvieu cavern product in US dollars per metric ton and US cents per gallon.

Platts will also start publishing daily USGC butane derivatives assessments, reflecting Mont Belvieu, Texas, normal butane for the first three months forward, as well as inter-month time spreads. These will be published daily in cents/gal.

The new assessments are:

These new assessments will be published on PGA/PRF/PCA pages 780 and 781, and PPU page 630; in Oilgram Price Report and in the Platts price database under the codes above, with effect from Sept. 1, 2021. The assessments will also be published in US Marketscan, LPGasWire and Latin American Wire starting Oct. 1.

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