Platts to launch Canadian NGLs assessments in Edmonton, Sarnia from Nov. 1

Platts, part of S&P Global Commodity Insights, will launch assessments for propane and field grade butane in Edmonton, as well as for propane, butane and isobutane in Sarnia to provide transparency for the Canadian NGLs market, effective Nov. 1, 2024.

Platts understands that the Canadian NGLs market has grown over the last several years and this is expected to continue in the foreseeable future.

Preliminary research suggests the Canadian NGLs spot market is divided into two large hubs: one in the Edmonton/Fort Saskatchewan, Alberta area, and the second one in Sarnia/Corunna, Ontario area.

Edmonton

Fractionators in the Edmonton area produce the greatest volume of NGLs in the country, with field grade butane for use mostly in crude blending, in addition to propane which is either consumed locally or exported mainly to the US or Asia.

Platts understands that multiple streams of Canadian NGLs trade in the Edmonton area. Platts may normalize bids, offers, and trades from any streams of NGLs traded in the area back to an Edmonton/Fort Saskatchewan basis.

Platts understands spot trade for Edmonton NGLs reflects barrels for any day in the specified delivery month -- also known as "any" barrels -- through the end of the month. Second-month trade reflects delivery one month forward from the current month.

Reflecting common trading practices, Platts will publish daily assessments and their corresponding monthly averages for:

• Outright prices for Edmonton inventory-transfer propane and field grade butane for both the prompt and second-month delivery.
• Differentials for Edmonton propane for both the prompt and second-month delivery against the corresponding month propane assessment in Conway, Kansas.
• The ratio for field grade butane against the NYMEX WTI Calendar Month Average (CMA), as well as the underlying CMA for both months of butane assessments.
• An assessment for second-month propane at Conway.

CURRENCY/UNIT OF MEASURE: Prices and differentials will be published in both US cents/gallon and in Canadian dollars/cubic meter. Field grade butane will also be published as a ratio to the WTI crude CMA.

QUALITY: The quality of propane and field grade butane will reflect the typical quality of the product available at Edmonton/Fort Saskatchewan.

VOLUME: Minimum size will be 1,000 cu m for propane and 500 cu m for field grade butane.

Sarnia

Platts understands that there are multiple streams of propane, butane, and isobutane trading in the Sarnia area, which can arrive via Enbridge Line 5 pipeline from Edmonton, as well as by rail or truck.

Platts understands spot physical trading for Sarnia NGLs reflects trading in barrels for any day in the specified delivery month -- also known as "any barrels" -- through the end of the month.

Reflecting common trading practices, Platts will publish daily assessments and their corresponding monthly averages for:

• Outright prices for Sarnia inventory-transfer propane, butane, and isobutane for the prompt-month delivery.
• Differentials for Sarnia propane, butane and isobutane against the corresponding delivery month Enterprise products at Mont Belvieu.

CURRENCY/UNIT OF MEASURE : Prices and differentials will be published in both US cents/gallon and in Canadian dollars/cubic meter.

QUALITY: The quality of propane, butane, and isobutane reflects the product originating from the Plains-operated Sarnia fractionator and Pembina storage facility in the Corunna, Ontario area.

VOLUME: Platts understands products traded in this market do not require a minimum batch size, though typical volumes trade in the range of 6,000 barrels.

The assessments will be published daily, except on US or Canadian holidays.

The new Canada NGLs assessments were proposed by Platts in a subscriber note published here .

Please send any questions, comments or feedback 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.