ASIA LPG METHODOLOGY
SIZE LOCATION SPECIFICATIONS PRODUCT SPECIFICATIONS
Methodology and Specifications Guide
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CHINA LPG METHODOLOGY
LATEST UPDATE: August 2011
The McGraw Hill Companies
These premiums and discounts are applied to the prevailing Saudi Aramco Contract Price during dates of loading. These assessments are published in dollars per metric ton. These assessments are published in dollars per metric ton.000 mt and 3. (3) Thailand to the port of Shantou.000mt cargoes. For assessment purposes. In the pressurized markets. Basis: Platts assessments reflect standard terms and conditions for FOB spot transactions lifting from the Arab Gulf and CFR spot transactions into Japan. Platts’ headline cargo assessment is produced by averaging the first two half-month assessments. and confirmed deals take precedence when Platts assesses the value of LPG in Asia. “Persian Gulf” reflects the port of Ras Tanura. On March 16 (the first business day after the 15th). Products: Platts assesses the value of refrigerated propane and refrigerated butane as stand-alone. Daily assessments reflect the latest information available at 1630 Singapore standard time on the date of publication. 70% butane. assuming a typical mix of 30% propane. 45-60 days forward and 60-75 days forward on the first day of every roll. Korea. Platts surveys the market and reflect spot charter fixtures in the assessments. Platts also assesses the value of combination refrigrated cargoes where propane and butane are both committed for delivery. and the first business day after the 15th of every month. Platts assessments would be for H1 April. ships that are typically carrying 44. H2 April and H1 May — representing 30-45 days. from March 1 until March 15. (2) Thailand to the port of Guanxi. Timing: Platts tracks the Asia and Middle East LPG markets continuously throughout the day. Floating price transactions are most commonly based on a premium or discount to Saudi Aramco’s monthly export Contract Prices (CPs) for propane and butane. Cost and Freight are typically defined by Incoterms. Platts also publishes an assessment of the premium or discount for spot cargoes loading 20-30 days forward in the Middle East. “Japan” deliveries are normalized to Chiba for freight assessments. this information is also published in summary form in Platts’ daily newsletter for the LPG markets. For the purposes of normalization.000mt cargo sizes. Additionally. Platts considers outright prices and floating prices in its assessments. while “East China” and “South China” are normalized to Shanghai and Guangzhou/Shenzhen respectively. firm offers. H1 May and H2 May. Refrigerated loading periods: In the Middle East spot LPG market. Platts assesses cargoes for delivery in three half-month cycles. South China and Taiwan main ports (see locations). Platts assesses the outright value of spot cargoes for loading 20-40 days after the date of assessment. and reflect the cost of shipping refrigerated LPG in Very Large Gas Carriers (VLGCs). Platts Global Alert and Petrochemicals Alert. and “Japan” to the port of Chiba. Additionally. and spot
premiums for cargos loading one and two months forward. 11. 22. Pressurized delivery periods: Platts’ CFR South China and CFR East China pressurized cargo assessments reflect the value of parcels to be delivered 7-15 days out from the date of publication. based on the official CP for the current month and forward CP values derived from the swaps market. typically in evenly split. Platts publishes this information on two real-time news services. Firm bids.000mt of LPG in segregated propane and butane tanks. Refrigerated delivery periods: In Asia’s delivered markets. assessment cycles move forward by a half month to become H2 April. “Korea” loadings are normalized to Ulsan/Onsan.METHODOLOGY GUIDE
ASIA LPG METHODOLOGY
Platts assesses the value of large cargoes of propane and butane supplied on refrigerated tankers in both the Middle East and the Asia Pacific regions. LPGaswire. with spot fixtures for nearby loading locations including Qatar and Bahrain normalized where needed. The cycles generally fall 30-45 days forward. Platts surveys the market and reflects spot charter fixtures in the assessments. reflecting the value of mixed LPG cargos carried in pressurized ships. These values provide a marker for the value of CP relative to the CFR delivery dates for Japan/Korea and China/Taiwan. for cargoes loading 20 or more days after the date of assessment. The three routes assessed are Persian Gulf to Japan. Assessments roll forward on the first business day of a new month. and reflect the cost of shipping pressurized LPG in small tankers typically carrying between 1. Platts publishes assessments for the small-cargo LPG market in the Asia Pacific.
. Refrigerated freight rate assessments: Platts publishes three assessments for the cost of freight along major shipping routes in the refreigerated LPG markets. Platts assesses the values of mixed LPG cargos Asia. The routes assessed are (1) Thailand to the port of Guangzhou. “Thailand” loadings are normalized to Map Ta Phut. Asia Proxy: Platts publishes two proxy values for the Saudi CP. Persian Gulf to South China and Persian Gulf to East China. Pressurized freight rate assessments: Platts publishes five assessments for the cost of freight along significant shipping routes in the Asia Pacific region pressurized LPG markets. 45-60 days and 60-75 days forward on March 1 itself. for cargoes loading 7 or more days after the date of assessment. Terms: AG/JAPAN/KOREA/SOUTH CHINA/TAIWAN: Platts’ assessments reflect transactions based on letter of credit as needed with typically 30-day terms. Platts’ refrigerated and pressurized LPG market assessments reflect the tradable value at the close of trading in Asia. As an example. Additionally.000 mt of mixed LPG. (4) Japan to the port of Shanghai and (5) Korea to the port of Shanghai.
000mt split refrigerated cargo CFR SOUTH CHINA/TAIWAN: 11. reflecting the typical size of one tank on a standard VLGC. Platts Asia assessments reflect the following typical volumes:
CFR JAPAN: Import terminals at main ports including Kashima.000-44. maximum 29% isobutane content.
Platts assessments apply to the following ports:
FOB AG: Export terminals including Ras Tanura. normalized to Shenzhen CFR SHANGHAI: Pressurized LPG storage terminals in East China including Ningbo and Nantong. Normal Butane (C4): Conforming to typical specifications issued by Saudi Aramco.000mt split refrigerated cargo
CFR SHENZHEN: Pressurized LPG storage terminals in South China including Zhuhai. and any safe port in Qatar
.000-44. normalized to Shanghai
CFR CHINA: 1. Saudi Arabia. minimum 68% normal butane content and maximum 0.000mt split refrigerated cargo CFR KOREA: 11. and floating storage vessels off China main ports including Shenzhen. maximum 4% butane content and maximum 0.800-2.METHODOLOGY GUIDE
CFR SOUTH CHINA:
CFR SINGAPORE-JAPAN: Platts’ 11:11 refrigerated LPG cargo assessments reflect the value of cargoes delivered to main ports from Singapore to Japan.1% olefin content.000 mt of propane and butane split across four tanks. Yokkaichi and Oita CFR KOREA: Import terminals at main ports including Yeosu and Ulsan CFR SOUTH CHINA/TAIWAN: Import terminals. including: minimum 95% propane content. Refrigerated LPG typically trades in multiples of 11. Zhuhai. Xiamen and Shantou.
Refrigerated LPG cargoes tend to trade on Very Large Gas Carriers (VLGCs) that typcally carry 44.000 mt. Shantou.500mt pressurized mixed LPG
Propane (C3): Conforming to typical specifications issued by Saudi Aramco.000mt split refrigerated cargo CFR JAPAN: 11.000-44. including: maximum 2% propane content.000-44. Saudi Arabia and Yanbu.1% olefin content. Mai Liao and Kaohsiung CFR North Asia: Average value of CFR Japan and CFR South China assessements
FOB AG: 11.
ppm (wt)² Guarantee Max 2.liquid volume % Propane Iso-butane N-butane Isopentane and heavier Olefins Corrosive Compunds. Passing test of hydrogen sulfide shall be reported as "Not more than 5 ppm".0 Min 95.0 Nil Max 0. ² Hydrogen sulfide test required only when volatile sulfur test exceeds 5 ppm.psig (KPa(g)) Water Content.1 Max No. 1b Max 5 To be reported Max 30 Max 70 (483) Max 10³ Method
ASTM D-1838 Exxon Laboratory Inspection Circular 200.psig (KPa(g)) Water Content. ³ Product shall contain no free water.Copper strip Hydrogen Sulfide. 2010.ppm (wt) (ug/g) Vapor Pressure @ 100°F.212 ASTM D-2598 ASTM D-2784/ D-40454 ASTM D-2598/ D-1267 ASTM E-700
Notes: ¹ Odorant not required in refrigerated propane LPG.1 Max No 1b Max 5 Method ASTM D-2163
Specific Gravity 60°F/60°F Sulfur (Total). 4 ASTM D-4045 as modified by Saudi Aramco can also be used as an alternative method of testing
CHINA LPG METHODOLOGY
Platts discontinued its China domestic LPG assessments effective December 6. Passing test of hydrogen sulfide shall be reported as "Not more than 5 ppm". ppm (wt)
To be reported Max 30 Max 200 (1380) Max 10³
ASTM D-1838 Lead acetate paper per Exxon Lab. ² Hydrogen sulfide test required only when volatile sulfur test exceeds 5 ppm.0 Min 68.Copper strip Hydrogen Sulfide.14 UOP-212 ASTM D-2598 ASTM D-2784/D-40454 ASTM D-2598/D-1267 ASTM E-700
Notes: ¹ Odorant not required in refrigerated propane LPG.liquid volume % Ethane Propane Butanes Pentanes and heavier Total Olefins Corrosive Compunds. 4 ASTM D-4045 as modified by Saudi Aramco can also be used as an alternative method of testing
Saudi Aramco product specification / refrigerated Butane LPG
Test Composition.0 Max 0.0 Max 1. ³ Product shall contain no free water.0 Max 4.ppm (wt) (ug/g) Vapor Pressure @ 100°F.0 Max 29. ppm (wt) Guarantee ASTM D-2163 Max 2.METHODOLOGY GUIDE
PRODUCT SPECIFICATIONS Saudi Aramco product specification / refrigerated Propane LPG
Test Composition. ppm (wt)² Specific Gravity 60°F/60°F Total Sulfur . Inspection Circular 200.14 or UOP .