Platts proposes launch of daily conventional and low-carbon FOB US Gulf ammonia assessments Nov. 1

Platts, part of S&P Global Commodity Insights, is proposing the launch of daily FOB US Gulf ammonia and FOB US Gulf low-carbon ammonia assessments, effective Nov. 1, 2024.

In view of increased export availability, Platts is proposing the launch of a daily (Monday-Friday) single number spot assessment of FOB market for conventional ammonia in the US Gulf.

Platts is also proposing the launch of a daily (Monday-Friday) single number spot assessment of the FOB market for low-carbon ammonia in the US Gulf, where low-carbon ammonia capacities are due to come online as early as 2025.

In each case, the proposed assessments will consider price information relating to ammonia from producers along the US Gulf Coast, with relevant price information normalized where necessary to a basis location of Donaldsonville, Louisiana. The assessments may also rely on netbacks from relevant destination markets.

The proposed cargo size for both the assessments is 25,000 metric tons, with relevant price information normalized where necessary to this point.

In the case of the daily low-carbon US Gulf Ammonia Price (UGAP), a maximum carbon intensity of 40 CO2eq/MJ (roughly equivalent to 720 kg CO2eq/mt ammonia) gate to gate is proposed -- mirroring the maximum carbon intensity specification of our existing daily Japan Korea Ammonia Price (JKAP).

The proposed assessments will be assessed daily on a 16:30 Sao Paulo timestamp and will follow the Sao Paulo publishing calendar. The assessments will appear in Platts Fertecon Daily and Platts Connect. The daily single price assessment for conventional ammonia on Thursday will also be published in the weekly Ammonia Market Report.

The following specifications are proposed for the daily assessments:

Assessment Name: Ammonia FOB US Gulf

Quality: Anhydrous ammonia, which is around 82% Nitrogen and is stored and transported as a liquid under pressure at around -33°C, with no restrictions on carbon intensity

Quantity: Basis 25,000 metric tons, with relevant price information normalized to this point

Basis and location: Basis port Donaldsonville, Louisiana. Other loading ports in Texas and Louisiana will also be considered and normalized where necessary for assessment purposes

Timing: Loading 1-6 weeks forward

Frequency: Daily

Appears in: Platts Fertecon Daily, Ammonia Market Report

Unit of assessment: US dollars per metric ton

Timestamp: 16:30 Sao Paulo, following the Sao Paulo publishing calendar

Assessment Name: US Gulf Ammonia Price (UGAP)

Quality: Anhydrous ammonia, which is around 82% Nitrogen and is stored and transported as a liquid under pressure at around -33°C

Quantity: Basis 25,000 metric tons, with relevant price information normalized to this point

Basis and location: Basis port Donaldsonville, Louisiana. Other loading ports in Texas and Louisiana will also be considered and normalized where necessary for assessment purposes

Carbon Intensity: Maximum 40g CO2eq/MJ (roughly equivalent to 720 kgCO2eq/mt ammonia) gate to gate

Timing: Loading 1-6 weeks forward

Frequency: Daily

Appears in: Platts Fertecon Daily

Unit of assessment: US dollars per metric ton

Timestamp: 16:30 Sao Paulo, following the Sao Paulo publishing calendar

Please send any feedback, questions and comments to fertilizer@spglobal.com and pricegroup@spglobal.com by Oct. 1, 2024.

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.