SUBSCRIBER NOTE: Platts proposes to reflect larger cargo sizes in NWE naphtha

Following an extensive in-depth review of evolving market conditions in Europe's naphtha markets, Platts now seeks formal feedback on a proposal to amend the cargo size reflected in its CIF Northwest European naphtha cargo assessment. This benchmark assessment is published in a wide variety of Platts information products, and is databased in Platts market assessment databases under symbol PAAAL00. Platts currently reflects cargoes of 12,500 mt, plus or minus 10%, in its CIF Northwest European naphtha cargo assessment. Under its proposed change, Platts would evolve this assessment to reflect the value of larger cargoes. Platts proposes to publish bids and offers for cargo sizes of 24,000-28,000 mt, 28,000-32,000 mt and 32,000-36,000 mt, with the most competitive of the three cargo sizes forming the basis of the final published assessment. This proposed change reflects the evolution of the naphtha market as the CIF Northwest Europe market is increasingly supplied by larger cargoes. As trade in these cargoes has become more commonplace across the market as a whole, so trading in smaller cargoes, generally produced by local Western European refineries, has become relatively less common. Platts is proposing to make this change with effect from January 2, 2015. The change in cargo sizes assessed should better reflect changing flows across Europe, where larger cargo sizes are increasingly seen in the market as regional refining run rates decline. In addition, Platts would only publish European naphtha cargo bids and offers that limit a counterparty's price exposure to operational tolerance. Platts would accept CIF cargo bids and offers that value the operational tolerance volume after the discharge dates -- with the operational tolerance to price on a floating price basis on the Platts naphtha CIF NWE cargo assessment following completion of discharge (COD), plus or minus a differential. For example, in a bid for 24,000-28,000 mt, Platts would publish a bid of 26,000 mt, as a fixed price with the operational tolerance of plus or minus 2,000 mt pricing as a floating price. Platts welcomes all feedback and questions to europe_products@platts.com, with a cc to pricegroup@platts.com. Please send all comments by September 19, 2014. 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.