Platts proposes to launch delivered Asia Pacific Cold Lake, Pacific Dilbit crude assessments Dec 2

Platts, part of S&P Global Commodity Insights, is proposing to launch daily assessments of Canada's Pacific Cold Lake and Pacific Dilbit crude oil on a delivered basis into North Asia, effective Dec. 2.

This follows Canada's 590,000 b/d Trans Mountain Expansion (TMX) crude oil project in Western Canada entering into service in May 2024, and observed subsequent flows of crude from this region into Asia.

TMX is an expansion of the 300,000 b/d Trans Mountain Pipeline, which moves crude and refined products from Edmonton, Alberta, to the Westridge marine export facility at Burnaby, British Columbia.

The Pacific Cold Lake and Pacific Dilbit crude assessments would reflect 550,000-barrel cargoes delivered on Aframax-size vessels, for delivery over the full calendar month three months forward from the month of publication.

Platts would assess prices of Pacific Cold Lake on CFR Korea basis, reflecting deliveries into Daesan, Ulsan and Yeosu; and Pacific Dilbit on DES East China basis, reflecting deliveries into Ningbo and Zhoushan. This follows Platts' observation of dominant trade flow and typical market practices of these grades. Trades and price indications into other discharge ports within Asia would be normalized to the standard.

Platts would publish assessments on an outright basis. Platts is also proposing to publish cash differentials to the whole month average of Platts Dated Brent and Platts Dubai assessments for the month of loading, which would typically be one month prior to the month of delivery.

For example, in September, Platts would assess outright prices and cash differentials against November Dubai futures and November Asia Dated Brent (ADB) Strip for Pacific Cold Lake and Pacific Dilbit for delivery in December.

Trades and price indications against other pricing basis would be normalized to the standards these proposed assessments reflect.

The assessments and their underlying pricing month basis would roll over on the first working day of the month.

Specifications for the proposed Pacific Cold Lake and Pacific Dilbit DES Asia assessments would reflect the accepted pool specifications as outlined by Canada's Trans Mountain Pipeline system. The current service standard was updated in June 2024, and brought into effect Sept. 1.

The proposed Pacific Cold Lake DES Asia would reflect a TAN (Total Acid Number) below 1.1 mgKOH/g and the proposed Pacific Dilbit DES Asia would reflect minimum TAN of 1.1 mgKOH/g.

Please send all feedback, comments or questions to Asia_Crude@spglobal.com and pricegroup@spglobal.com by Oct. 25,2024.

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