SUBSCRIBER NOTE: Platts launches USGC Export ULSD cargo assessment

Platts is introducing an assessment for Ultra Low Sulfur Diesel export cargoes loading at US Gulf Coast terminals on an FOB basis, effective December 1, 2014, following a period of industry feedback.

The Platts FOB USGC Export ULSD assessment will reflect EN590 quality diesel with a typical standard clip size of 300,000 barrels and a typical operational tolerance of plus/minus 10%. The assessment will reflect cargoes loading seven to 21 days forward from the date of publication, subject to industry standard terminal and vessel nomination procedures. Export ULSD should be free of any biofuels.

Loading locations include terminals along the US Gulf Coast from Corpus Christi, Texas, to Pascagoula, Mississippi, normalized to a Houston basis.

The Platts FOB USGC Export ULSD assessment will not include the value of Renewable Volume Obligations (RVOs), which reflect the cost of supplying RINs with fuel when mandated by the US Environmental Protection Agency as part of the Renewable Fuel Standard (RFS). RVOs are the amount of renewable fuels to be blended into transportation fuels for US domestic consumption.

The new assessment will be published as an outright value in both cents/gallon and $/mt. The value of any cargoes trading as a differential to prompt pipeline ULSD will be assessed by calculating a forward value for pipeline diesel to align with the 7-21 day Export ULSD assessment window.

Platts first proposed the new assessment in a subscriber note June 18, 2014, and subsequently extended the feedback period on July 11, 2014, and again on September 2, 2014. The feedback period ended September 15.

Please email comments and questions to americas_products@platts.com with a cc to pricegroup@platts.com.

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.