Platts launches CIF Mediterranean large cargo LPG assessments

Platts, part of S&P Global Commodity Insights, has launched 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.

This follows a subscriber note announcing the launch on Oct. 7, which can be found here: Platts to launch CIF Mediterranean large cargo LPG assessments Nov 1 | S&P Global Commodity Insights. Platts first proposed the new assessments on Sept. 17 here:

The assessments can be found in LPGaswire and on Platts Global Alert and Platts Refined Products Alert fixed pages 1775 and 1777.

The Platts Propane CIF Med Large Cargo assessment reflects 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 in recent years.

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

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

Platts is publishing 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 process, information heard in over-the-counter markets may be taken into consideration.

Details of the new Platts CIF large cargo LPG assessments are as follows:

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 process 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.