Platts proposes CIF NWE naphtha 12,500 mt operational tolerance pricing change

S&P Global Platts is proposing to change the operational tolerance pricing of 12,500 mt cargoes in its CIF NWE naphtha cargo Market on Close assessment process from a fixed to floating price basis, effective February 22.

The proposed change will bring operational tolerance pricing for 12,500 mt cargoes in line with the larger cargo sizes published in the CIF NWE naphtha cargo MOC process. The physical CIF NWE naphtha cargo assessment (PAAAL00) reflects four cargo sizes: 12,500 mt, 24,000 to 28,000 mt, 28,000 to 32,000 mt and 32,000 to 36,000 mt, full or part-cargo, with the final assessment reflecting the most competitive (i.e. lowest value) of the four cargo sizes.

Under the proposed change, Platts would reflect 12,500 mt CIF NWE naphtha bids, offers and trades where the volume operational tolerance is plus/minus 10%, with the latter valued after discharge on a floating price basis, on the mean of the Platts naphtha CIF NWE cargo assessment over five working days after completion of discharge (COD), plus or minus a differential.

Currently, for 12,500 mt cargoes in the CIF NWE naphtha MOC process, Platts reflects bids, offers and trades, where the volume operational tolerance is plus/minus 10%, but where pricing is equal to the main volume pricing.

Additionally, Platts wishes to remind subscribers that main volume pricing and operational tolerance pricing are expected to be within a reasonable range, while accounting for market structure, in order to be reflected in the Platts Market on Close assessment processes. Platts may review for publication instances where the two pricing elements are deemed to significantly diverge.

Please send any comments or feedback by January 11, 2021 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.