SUBSCRIBER NOTE: Platts to launch USGC FOB naphtha assessment January 2

Following a review of market feedback, Platts confirms that it will introduce an FOB naphtha assessment for cargoes loading at US Gulf Coast terminals on an FOB basis effective January 2, 2014.

This decision follows a consultation launched by Platts on May 1, and a proposal published September 24.

The assessment will be published as an outright price in both US dollars per metric ton, and cents per gallon, to allow for efficient comparison between US pipeline and export markets. The assessment will reflect the value of a 250,000-barrel, plus or minus 5%, cargo loading 7-21 days forward from the date of publication. Other trade sizes may be considered for the assessment, normalized for size.

The specifications would be as follows: N+A: min 38% vol; IBP: min 110F; 10% distillation: min 155F; FBP: max 395F; API: max 63; Sulfur: max 350 ppm; Color: min +20; RVP: max 6 psi; Nitrogen: max 3 ppm; Lead: max 50 ppb; Oxy: max 50 ppm; Chloride: 1 ppm max; Olefin: max 1%; H2S: 1 ppm liquids.

The assessment would be based on market activity in the ports of Corpus Christi, Houston, Port Arthur/Beaumont, Lake Charles and New Orleans. The final published assessment would be normalized to reflect a Houston basis. The additional naphtha assessment is proposed in light of the structural change in the US Gulf Coast naphtha market, which has made the region an exporter of naphtha, as well as an importer. Please send all further questions and comments to americas_products@platts.com and pricegroup@platts.com by December 15, 2013. 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.