Platts proposes to launch CIF Black Sea LPG coaster assessments Jan 2

Platts, part of S&P Global Commodity Insights, proposes to launch CIF Black Sea LPG coaster assessments, effective Jan. 2, 2025, amid market feedback seeking greater transparency for the value of LPG cargoes delivered in the Black Sea following the anticipated entering into force of EU's import ban on Russian LPG after an initial 12-month transition period, from January 2025.

The proposed propane CIF Black Sea propane, butane and propane-butane mix assessments would all reflect the value of pressurized or semi-pressurized vessels for delivery 5-15 days from the date of publication, with material sourced from refinery/storage on full or part-cargoes in the range of 1,000-5,000 mt.

All three assessments would be CIF basis Midia or Galati in Romania, or Burgas in Bulgaria, but deliveries into other ports in the Black Sea may be reflected. All deliveries to ports other than Midia, Galati or Burgas may be normalized to this basis.

The propane assessment would reflect a minimum content of 93% C3s and a maximum of 30% olefins including both field and refinery grades.

The butane assessment would reflect mixed butane with a maximum content of 85% normal butane, 49% isobutane and 30% olefins including both field and refinery grades.

The propane-butane mix assessment would reflect a typical mix of 80% propane and 20% butane meeting EN 589 specifications. Platts understands that in addition to 80-20 mixed propane/butane cargoes, some ports in the Black Sea also seasonally import mixed cargoes reflecting 70-30 and 50-50 splits. Platts may reflect these atypical mixed propane/butane cargoes for the assessment, normalized back to an 80-20 standard. Platts invites market feedback on the proposed standard of 80-20 propane/butane mix reflected as the underlying basis for this assessment.

Platts understands LPG delivered in the Black Sea typically trades as a differential to the corresponding Sonatrach propane or butane Contract Price for the month of loading. Platts will publish 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 assessment process, information heard in over-the-counter markets may be taken into consideration.

More details of the Platts European LPG methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Europe-africa-refined-products-methodology.pdf.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers during the MOC 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 by Dec. 6 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.