Platts to launch FOB NWE LPG large cargo assessments, monthly indexes from Nov

Platts, part of S&P Global Commodity Insights, will launch new daily FOB Northwest Europe large cargo assessments and NWE large cargo monthly indexes for propane and butane, effective Nov. 1, 2024.

The Platts Propane and Butane FOB NWE Large Cargo assessments will be calculated as a freight netback to the Platts Propane CIF NWE Large Cargo assessment (PMABA00) and Platts Butane CIF NWE Large Cargo assessment (PMAAK00), respectively, based on the following medium gas carrier (MGC) routes: Karsto, Houndpoint (Braefoot Bay), Mongstad and Teesside to Flushing and Amsterdam-Rotterdam-Antwerp.

The freight differential will be calculated based on prevailing MGC rates for the specified routes and announced on Nov. 1, 2024, and applied through Sept. 30, 2025. However, this may be reviewed for change, subject to market conditions. Such modifications will be made in line with the Platts Methodology Change Standards, including the announcement of changes via subscriber notes.

From 2025, the annual freight differential will be calculated on a yearly basis and announced on Oct. 1 and applied through Sept. 30 of the following calendar year, in line with standard market practices.

In addition, Platts will also begin publishing the Platts Propane NWE Large Cargo Index (PNCI) and Butane NWE Large Cargo Index (BNCI) from Nov. 29. These indexes will reflect the average value of the last five published daily prices of the month for Platts Propane FOB NWE Large Cargoes and Butane FOB NWE Large Cargoes, respectively, and will be published on the last working day of each month.

Platts' existing propane and butane CIF NWE large cargo assessments reflect the value of refrigerated cargoes meeting Braefoot Bay commercial specifications for delivery 10-25 days from the date of publication, with values normalized to reflect the mean of the delivery period. More details of the methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Europe-africa-refined-products-methodology.pdf.

Platts will publish the new assessments and indexes on an outright basis in $/mt, with a timestamp of 4:30 pm London time.

Details of the new Platts FOB Northwest Europe Large Cargo assessments and monthly indexes are as follows:

Please send any comments or feedback to europe_products@spglobal.com and pricegroup@spglobal.com.

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