SUBSCRIBER NOTE: Platts to change Butane FOB Seagoing assessment

Following an extensive review with market participants, Platts will make a number of changes in its Butane FOB Seagoing pressurized assessment with effect from January 3, 2017. Platts will standardize the name of the assessment across all publications, update the specification referenced in the methodology guide, volumes and locations assessed.

This follows a proposal subscriber note published on May 27, 2016.

NAME OF ASSESSMENT: In certain publications Platts describes this assessment as Butane FOB Seagoing. Platts will standardize this to "Butane FOB NWE Seagoing".

SPECIFICATION: Platts will remove reference in the methodology guide of a specification of 70% normal butane and 30% isobutane with a maximum olefin content of 10%. Platts will continue to reflect mixed butane with up to a maximum of 85% normal butane, 49% isobutane and 30% olefins, including both field and refinery grades.

VOLUME ASSESSED: Platts will change the volume under assessment, from a minimum of 1,000 mt plus or minus 5% tolerance to 1,800 mt plus or minus 5%, and from a maximum of 3,600 mt plus or minus 5% to 6,000 mt plus or minus 5%. Following market research and industry feedback, Platts will not go ahead with its proposal to normalize all bids and offers within the assessed range to 1,800 mt plus or minus 5%.

LOADING BASIS: Platts will reflect loadings from the Northwest European region. Platts will publish bids, offers and transactions for coasters loading in relevant ports in Norway, Denmark and Sweden but these will be normalized back to Northwest Europe. The current standard reflects an area represented by a triangle with Wilhelmshaven, Germany, Teesside, UK, and Le Havre, France, as its three corners.

Platts welcomes feedback and questions to europe_products@platts.com, with a cc to pricegroup@platts.com. For written comments, please provide a clear indication if the 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.