Platts to launch CIF Mediterranean large cargo LPG assessments Nov 1

Platts, part of S&P Global Commodity Insights, will launch CIF large cargo LPG assessments in the Mediterranean, effective Nov. 1, 2024, amid market feedback seeking greater transparency for the value of LPG cargoes delivered on medium gas carriers and Very Large Gas Carriers (VLGCs) in the Mediterranean.

Platts first proposed the new assessments on Sept. 17, details can be found here: Platts proposes to launch Mediterranean CIF Large Cargo LPG assessments from Nov. 1 | S&P Global Commodity Insights (spglobal.com).

The Platts Propane CIF Med Large Cargo assessment will reflect the value of refrigerated cargoes for delivery 10-25 days from the date of publication, with values normalized to reflect the mean of the delivery period.

The delivery window of 10-25 days forward was adjusted from the 3-15 day window originally proposed, based on feedback that the market has evolved to trading further forward, following increased arbitrage inflows following in recent years.

The assessment will reflect full or part-cargoes of 8,500-23,100 mt, meeting field-grade (95%) propane specifications. The assessment will be CIF basis Lavera, but deliveries into other ports in the Mediterranean will be reflected. Trades basis other locations will be normalized to a Lavera basis by analyzing freight costs.

In addition, the Platts Butane CIF Med Large Cargo assessment will reflect the value of refrigerated cargoes for delivery 10-25 days from the date of publication, with values normalized to reflect the mean of the delivery period.

The assessment will reflect full or part-cargoes of 8,500-23,100 mt, meeting field-grade mixed butane specifications, with a minimum 20% isobutane content. The assessment will be CIF basis Lavera, but deliveries into other ports in the Mediterranean may be reflected. Trades basis other locations will be normalized to a Lavera basis by analyzing freight costs.

Platts will publish the new LPG assessments on an outright basis in $/mt, time-stamped at 1630 London time. In the absence of any bids, offers or trades in the Platts Market on Close assessment process, information heard in over-the-counter markets may be taken into consideration.

More details of the Platts European LPG methodology can be found here: europe-africa-refined-products-methodology.pdf (spglobal.com).

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers during the MOC in order to ensure an orderly and transparent price assessment process. Details can be found in this guide: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/oil-timing-increment-guidelines.pdf.

Please send any comments or feedback to europe_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.