Platts to align FOB USGC Naphtha cargo specifications with CFR Japan

• Platts will align FOB USGC Naphtha cargo specifications with CFR Japan from Oct. 1
• Platts to change parcel size from current 250,000 barrels to 30,000-40,000 mt.
• Platts to publish new assessment for $/mt differential between FOB USGC cargo and benchmark MOPJ

S&P Global Platts will change the specifications reflected in its FOB USGC naphtha cargo assessment to mirror CFR Japan naphtha, with effect from Oct. 1, 2020.

Platts will change the parcel size reflected in the FOB USGC Naphtha cargo assessments (assessment codes: AAXJU00, AAXJP00) from the current 250,000 barrels to 30,000-40,000 mt, with the typical size 35,000 mt. Bids, offers and trades for parcel sizes in this range may be normalized to the typical parcel size for inclusion in the assessment.

Additionally, Platts will publish new assessments for the 45-75 day MOPJ strip at the Houston close, as well as a differential in $/mt to this strip. Platts will also start publishing CFR Japan naphtha derivatives at the Houston close for the balance month, month 1, month 2 and month 3 contracts.

Platts recognizes that naphtha cargoes along the US Gulf Coast are typically blended, and the FOB USGC naphtha cargo assessment will reflect blended and non-blended cargoes. The USGC naphtha market has evolved into an export market, with a focus on product sailing to Asia. In light of evolved market dynamics, Platts is aligning its FOB USGC cargo assessment with CFR Japan naphtha specifications, to better connect the US Gulf Coast and Asia markets.

SPECIFICATIONS

The proposed specifications are as follows:

PLATTS CFR JAPAN NAPHTHA SPECS

The current FOB USGC Naphtha cargo assessment reflects the following specifications:

NAPHTHA FOB USGC

LAYCAN

Platts will keep the currently assessed laycan for naphtha cargoes of seven to 21 days forward.

This decision follows a proposal published by Platts on June 23 and the relevant subscriber note can be found here: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/062320-platts-proposes-aligning-fob-usgc-naphtha-cargo-specifications-with-cfr-japan Platts previously proposed a launch date of Sept. 1.

Please send all comments to americas_products@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.

To see this note and others, please go to https://www.spglobal.com/platts/en/our-methodology/subscriber-notes.