SUBSCRIBER NOTE: Platts considers additional terminals for USGC Fuel Oil MOC

Platts is considering a proposal to reflect loadings from NuStar's Texas City terminal and World Point Terminals' Pelican Island in its benchmark USGC HSFO assessments.

The proposal comes in response to requests from market participants for inclusion.

Platts US Gulf Coast fuel oil assessments currently reflect fuel loading basis FOB Houston from terminals including Intercontinental Deer Park Terminal, Magellan Galena Park Terminal, Bayport Container Terminal, Houston Fuel Oil Terminal and Battleground Oil Specialty Terminal. These locations are detailed in the explanation of the USGC HSFO assessment as published on Platts website at http://www.platts.com/price-assessments/oil/usgc-fuel-oil.

Under this new proposal, sellers may nominate Galveston Bay terminals, including NuStar's Texas City terminal and World Point Terminals' Pelican Island, for performance on FOB Houston trades reported through the USGC HSFO Market on Close process.

Nominations for loading out of Galveston Bay terminals should not cause undue financial harm to a buyer, relative to receiving a nomination out of a Houston terminal. Any demonstrable incremental costs incurred by the buyer from a Galveston Bay terminal nomination should be costs borne by the seller in the MOC process.

Alongside FOB Houston bids, offers and transactions, Platts currently also publishes FOB New Orleans HSFO bids, offers and transactions. Such market information may be normalized to FOB Houston for reflection in the USGC HSFO assessment.

Platts invites feedback on these proposals, specifically as to terminals themselves, the manner of their inclusion in the MOC process, and the timing of implementation.

Please send any comments and queries by November 30, 2016 to americas_products@platts.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.