SUBSCRIBER NOTE: Platts CIF NWE naphtha to reflect cargoes from 12,500mt to 36,000mt

Platts will update its CIF NWE naphtha cargo assessment to include larger sizes alongside its existing 12,500mt delivery volume with effect from January 2, 2015. Following a comprehensive review of feedback, Platts reconsidered its initial proposal where the assessment was going to reflect the value of naphtha delivered in three larger cargo sizes. From January 2, 2015, the four cargo sizes reflected in the assessment will be 12,500mt, 24,000-28,000mt, 28,000-32,000mt and 32,000-36,000mt. The most competitive of the four cargo sizes will be reflected in the final published CIF NWE naphtha cargo assessment. By reflecting four commonly traded cargo sizes, Platts seeks to ensure that its assessment reflects a broader cross-section of Europe's evolving spot market. This change reflects the evolution of the market, as demand is increasingly supplied by larger cargoes. As trade in these cargoes has become more commonplace across the market as a whole, so trading in smaller cargoes, generally produced by local Western European refineries, has become relatively less common. Platts reviewed extensive feedback shared during its formal review process, which began when Platts published its proposal to reflect larger cargoes on August 18, 2014. Further feedback was shared during an open technical workshop held in London on October 10. Respondents expressed a range of views including support for the principle to include larger cargo sizes in the Platts assessment methodology. Broad support for the continued inclusion of the current, 12,500mt cargo size was also received. CARGO SIZES: Platts will continue to consider bids, offers and trades for the cargo size currently reflected in its CIF Northwest European naphtha cargo assessment: cargoes of 12,500 mt, plus or minus 10%. In addition, Platts will publish bids, offers and expressions of interest to trade in cargo sizes of 24,000-28,000 mt, 28,000-32,000 mt and 32,000-36,000 mt. The most competitive of the four cargo sizes will form the basis of the final published assessment. OPERATIONAL TOLERANCE (LARGER CARGOES): For 24,000-28,000 mt, 28,000-32,000 mt and 32,000-36,000 mt cargoes, Platts will reflect European naphtha cargo bids, offers and trades that limit a counterparty's price exposure to operational tolerance. Platts will reflect CIF cargo bids, offers and trades that value the operational tolerance volume after discharge on a floating price basis, on the mean of the Platts naphtha CIF NWE cargo assessment over five working days after completion of discharge (COD), plus or minus a differential. For example, in a bid for 24,000-28,000 mt, Platts would typically publish a bid of 24,000 mt on a fixed price basis, with an operational tolerance of 0-4,000 mt pricing as a floating price on the mean of the Platts naphtha CIF NWE cargo assessment five working days after completion of discharge (COD), plus or minus a differential. OPERATIONAL TOLERANCE (12,500 MT CARGOES): Platts will continue to review pricing terms reflected in the 12,500 mt transactional activity considered in the assessment process, but proposes no immediate change to these standards. Platts welcomes all further feedback and questions to europe_products@platts.com, with a cc to pricegroup@platts.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.