Platts aligns FOB USGC Naphtha cargo specifications with CFR Japan

**Platts has aligned FOB USGC Naphtha cargo specifications with CFR Japan from Oct. 1

**Platts has changed parcel size from current 250,000 barrels to 30,000-40,000 mt.

**Platts is publishing a new assessment for the $/mt differential between FOB USGC cargo and benchmark MOPJ

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

Platts has changed the parcel size reflected in the FOB USGC Naphtha cargo assessments (assessment codes: AAXJU00, AAXJP00) from 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 is publishing new assessments for the 45-75 day MOPJ strip at the Houston close, as well as a differential in $/mt to this strip. Platts is also 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 reflects 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 has aligned its FOB USGC cargo assessment with CFR Japan naphtha specifications, to better connect the US Gulf Coast and Asia markets.

SPECIFICATIONS

The new specifications are as follows:

PLATTS CFR JAPAN NAPHTHA SPECS

Paraffins Min 65%

Specific Gravity at 60F 0.65-0.74 g/m

RVP Max 13 psi

Sulfur Max 650 ppm

IBP Min +25degreesC (77degreesF)

FBP Max 204degreesC (399.2degreesF)

Chlorine Content Max 1 ppm

Mercury Max 1 ppb

Arsenic Max 20 ppb

Olefins Max 1%

N-Paraffins Min 30%

Color Min +20 Saybolt

Lead Max 150 ppb

Oxygenates Max 50 ppm TAME, MTBE and/or ETBE

Carbon Disulfide Max 3 ppm

Previously, the FOB USGC Naphtha cargo assessment reflected the following specifications:

NAPHTHA FOB USGC

IBP 110degrees F min (43.33degrees C)

10% Distillation 155degrees F min (68.33degrees C)

FBP 395degrees F max (201.67degrees C)

Color 20 min

API 63 max

RVP 6 psi max

N+A 38% volume min

Nitrogen 3 ppm max

Sulfur 350 ppm max

Lead 50 ppb max

Oxygenates 50 ppm max

Chloride 1 ppm max

Olefin 1% max

H2S 1 ppm liquids

LAYCAN

The assessed laycan for naphtha cargoes remains unchanged at seven to 21 days forward.

The changes follow a proposal published by Platts on June 23: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/062320-platts-proposes-aligning-fob-usgc-naphtha-cargo-specifications-with-cfr-japan

Platts had previously proposed a launch date of Sept. 1.

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