You are on page 1of 85

Po

AUGUST 2015
DOE Okays American LNG
Marketing to Export to
Non-FTA Countries

Argus Launches
Emissions-Adjusted Spark
and Dark Spreads for UK

EPAs Clean Power Plan to


Cut Carbon Pollution 32%
by 2030

First US Commercial Scale


Offshore Wind Farm Celebrates
Construction Milestone

Weighing the Options:


Build an Internal EDM
System or Get ZEMA
By the ZE Business Analysts Team

GUEST FEATURE

Olefin Prices Volatile Ride May Threaten


US Petrochem Renaissance
By Kathy Hall and Samantha Hartke, PetroChem Wire
Powered by
New products and
data sources

Delisting of products
and data sources

Potential impact
on data

Changes to data attributes,


replacement of products

Power

Power 7
IESO to Host Training Course for Ontarios First Demand Response Auction
7
PJM Holds Capacity Auction with New Capacity Performance Requirement
7
NYMEX Amends 22 Electricity Products
8

Petroleum

Petroleum 10
Platts to Launch New Americas Dirty Tanker Assessments
10
Platts to Publish Dated Brent to Brent Frontline Swap Values for 36 Months Ahead
11
Platts to Launch New Baltic-UK Medium Range Clean Tanker Assessment
11
Platts to Assess Singapore Front Month Swaps and European East-West Fuel Oil
11
Platts to Launch Weekly DINP and DOTP Assessments
12
Platts to Launch New Asia Clean Tanker Assessments
13
Platts Publishes Outright Price Values for Eight US Coastal Vacuum Gasoil Assessments
14
Platts Launches Six US and Canadian Daily Medium Range Clean Tanker Assessments
14
Platts Launches US Scrap Lead-Acid Battery Price Assessments
15
Platts Launches Asian Metallocene C6 LLDPE Assessments
15
Platts Publishes New West African Crude Oil Assessments
16
Argus Launches Daily European Fuel Oil and Gasoil Diesel Assessments
16
Argus Introduces Daily Middle East Butane and Propane Assessments
17
Argus Adds North American Styrene Assessments
18
Argus Introduces Asia-Pacific Forwards for Crude, Refined Products, and Crack Spreads
18
NYMEX Introduces New Light Louisiana Sweet Average Price Options
19
DCE Lists New Petroleum Product Contracts
21
Platts to End Northwest Europe, Italy, and Singapore Visbreaking Yields, Netbacks, and Margins 21
Platts to Discontinue FOB La Skhirra Zarzaitine Crude Oil Outright and Differential Assessments
22
Platts to Discontinue Stybarrow, AHS Crude Index
22
Platts to End CIF Augusta Kumkol Outright and Differential Assessments
23
Platts Discontinues Daily US Styrene Balance of the Month Assessment
23
Platts Ends All US Methyl Ethyl Ketone and Methyl Isobutyl Ketone Assessments
24
Platts Discontinues Weekly US Mixed Xylenes Contract
24
Argus Discontinues Multiple Eugene Island Crude Assessments
25
Argus Stops Druzhba Czech Crude Export Assessment
26
Argus Ends Russian Gasoil Cargo Assessments
26
NYMEX Delists Three RIN Futures
28
NYMEX Discontinues Singapore Fuel Oil Spread Futures
28

Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature

In Depth

August 2015

Editorial

Editorial 5
August, the Month of Energy Sector Discontent
5

Summary

Summary

Contents

Power
Petroleum
Nat Gas

Softs and Metals


35
SOFTS 35
Platts to Launch New Thai Hi-Pol Sugar Forward Physical Assessment Curve
35
Platts to Introduce Daily US Dried Distillers Grains with Solubles Assessments
36
Platts to Launch CIF European Feed Wheat and Corn Assessments
36
Platts Launches US BOHO Assessment
37
DCE Lists New Softs Contracts
37
Platts to Discontinue Ethanol FOB Singapore Assessments
37
Argus Changes Description for New Orleans Urea Assessment
38
METALS 38
Platts to Launch China Blast Furnace Iron Ore Pellet Premium
38
NCDEX Launches Silver Hedge 30 KG Futures
39
LME Clear Launches New Renminbi Initiative
39

Coal
Softs and
Metals
Finance
Weather and
Emissions

Finance 39
CME Delists Approved Copper Warehouse
39
Argus Changes Timing Descriptions for Black Sea Steel Publication
40
CME Lists Additional Expiration Months in Serial Options and Serial Mid-Curve Options
on Eurodollar Futures
42
CBOE to List Weeklys Options on VIX
43
CBOE Launches Hedge Fund Benchmarks with Eurekahedge
43
CBOE Introduces 10 Options-Based Strategy Performance Benchmark Indexes
44
CBOT Launches User-Defined Spreads for CBOT Treasury Bond and Note Futures Calendar Spreads 45
Deka Equity Index ETF Launched on Xetra Tracks Sustainable Euro-Zone Companies
45
Ossiam Smart Beta ETF Launched on Xetra to Track Undervalued US Sectors
46
Thomson Reuters Releases StarMine Combined Alpha Model
46
Thomson Reuters Introduces Intraday Evaluated Pricing Capabilities
47
Eurex Launches GMEX IRS Constant Maturity Futures
47
SGX Introduces Evaluated Bond Prices
48
TMX Lists Composite Index Banks and Capped Utilities Index Futures and Options
48

Data
Vendors
Market
Analysis
Guest
Feature

In Depth

August 2015

Editorial

Coal 33
Platts Launches New US Illinois Basin Coal Assessment
33
DCE Launches New Coal-Based Contracts
34
Platts to Discontinue Two US Coal Assessments
34

Summary

29
29
29
30
31

Summary

Natural Gas
Energy Department Authorizes American LNG Marketings Application to Export LNG
Platts to Launch Brazil LNG Netforward
Platts Publishes New Transco and Tennessee Natural Gas Assessments
ICE to List Three US Natural Gas Contracts

Petroleum
Nat Gas

57
57
57
58
58

Power

Monthly Market Analysis


Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX)
Crude Oil Brent vs. WTI: Forward Curve (NYMEX)
North American Natural Gas Spot Prices (NYMEX)
Henry Hub Natural Gas Forward Curve (NYMEX)
Actual Weather (AccuWeather)
Electricity: Day-Ahead Prices (ICE)
Gold and Silver Daily Prices (CME)

Coal

60
60

Softs and
Metals

Guest Feature
61
Olefin Prices Volatile Ride May Threaten US Petrochem Renaissance
61
Ethylene 61
Plants at 100%, Impact of Ad-valorem Inventory Taxes
63
Widespread Sentiment, August Contract Price Impact
64
Forward Curve
65
Narrower cash cost margins
66
Propylene 67
Summary 68

Finance
Weather and
Emissions
Data
Vendors

In Depth
70
Weighing the Options:Build an Internal EDM System or Get ZEMA
70
The Role of Enterprise Data Management in Energy and Commodities Industries
70
What is an Enterprise Data Management System?
71
Development of Commercial Off-The-Shelf Software
72
The Case for Building a Modern EDM System In House Costs and Requirements
73
The Case for Buying a Commercial EDM Software ZEMA
78
Case Study 1: A Power Firm That Initially Decided to Build an EDM System
81
Case Study 2: Global Integrated Oil/Gas Firm Licenses ZEMA
82
Conclusion 84
Bibliography
85

Market
Analysis
Guest
Feature

In Depth

August 2015

Editorial

54
54
54
55
56

Summary

News from Data Vendors


ZEMA Adds Electricity, Fuel, Natural Gas, Metal, and Currency Data in August
MDA Introduces Zip-Code Level Weather Data and Other Product Offerings
PetroChem Wire Introduces 70+ NGL Prices in NGLs Week Newsletter
Mideast Gulf LPG Spot Trade Flourishes Led by Qatari Supplies

Summary

Weather and Emissions


50
Obama Administration Announces New EPA Clean Power Plan to Cut Carbon Pollution 32% by 2030 50
United States First Commercial Scale Offshore Wind Farm Celebrates Construction Milestone
51
Argus Introduces Emissions-Adjusted Spark and Dark Spreads for UK Market
52
Platts to Change European CO2 Emissions Assessments
53

Summary
Editorial

Editorial
Editorial

Power

August,
the Month of Energy
Sector Discontent

Petroleum

By Olga Gorstenko,
Editor-In-Chief Datawatch
olga@ze.com

Nat Gas
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature

In Depth

August 2015

Finance

On August 7, 2015, Midwest Reliability Organization (MRO), one of the NERCs subsidiaries, released a
Happy Birthday wish to EPAct. A classy congratulatory press release contained a reminder about the
mandate of the industry to provide a critical public service . . . one that needs to be protected in ensuring
a highly reliable regional bulk power system. I dare to speculate that probably this so unconventionally
delivered message about where the MROs heart is has something to do with the EPAs progressive
march towards cleaner power generation. Several days prior to this message, on August 3, 2015, EPA
introduced a revised version of the Clean Power Plan, which, according to EPA, offers more flexibility to
the states in meeting compliance with reducing CO2 emissions. Maybe there was some flexibility added;
however, the target compliance year has been moved up by two years, making this plan more ambitious.
This historic document mandates the electric sector to reduce CO2 emissions by 32% below the 2005
level by 2030. Each state was given an individual target by EPA calculated on the basis of weighted

Softs and
Metals

In August of 2003, a massive blackout left 50 million electricity users in Northeast Canada and the United
States in darkness for several days. Even though that disturbance was nowhere near the expanse of the
2012 blackout in India with 620 million left without electricity, the US regulatory impact from this event
was disproportionately enormous. The reaction from the government authorities to the Indian blackout
was a three-person committee investigation that issued a report with series of recommendations. North
Americans had a bit more thorough take. A joint US-Canadian government federal taskforce investigation
concluded that the cause of such disaster was absence of mandatory reliability standards. Two years
later, in August 2005, the Energy Policy Act (EPAct) was signed into law by US President George W. Bush.
This legislature set up the framework for mandatory requirements for reliability of services provided by
operators of bulk electric systems. By the way, it was the second time lawmakers got very serious about
reliability. An earlier joint US-Canadian blackout in 1965 set the foundation for creation of NERC itself;
forty years later, EPAct made these reliability standards developed by NERC mandatory, and NERC was
given the authority to enforce compliance with these standards.

Coal

The eighth month of the year has historically been very special for the US energy sector. The Northeast
Blackout of 2003, the Energy Policy Act (EPAct) of 2005, and the Clean Power Plan and Methane
Emission Reduction Policy proposal of 2015 each had immense impacts on the industry and originated in
August. Whether their birthdays are coincidental or not, logically they are connected with one another in a
very curious manner.

ZEMA Inquiries
Bruce Colquhoun. P: 604-790-3299. E: bruce.c@ze.com
Advertising & Vendor Relationships
Bruce Colquhoun. P: 604-790-3299. E: bruce.c@ze.com
Contact DataWatch
E: datawatch@ze.com
Front Desk: 1-866-944-1469
Editorial Department: 778-296-4183
M: ZE PowerGroup Inc. 130-5920 No. 2 Road,
Richmond, BC V7C 4R9
To search our archives: www.datawatch.ze.com

Petroleum

Get real-time data updates @zedatawatch

Nat Gas

Subscribe on your iPad today

Will FERC have to develop regulations for energy


dispatch to meet EPAs requirements? Does
that mean that FERC will have to follow the EPAs
directives? Will the market-based economic
energy dispatch become obsolete?

Coal
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth

Finance

Questions go on and on. Strange thing: despite the


grievance given to fossil-fueled generators, many
environmentalists are not happy either. Too little,
too late and only negative emissions can save
us is their common rhetoric even though EPA did
not concentrate their efforts on power sector only.
On August 18, 2015, EPA released a
proposal on reducing methane emissions from oil
and natural gas production the first-time ever
federal attempt to establish standards for new and
modified sources. The industries did not take the
announced proposal warmheartedly stating that
the methane emissions have been falling
consistently in the last years and the new
standards will be just an additional bureaucratic
burden on the system. And hear what the
environmentalists are saying: not enough, they
should put standards on abandoned and
existing sources as well.In August 2015, the
energy industry did see many happy campers. Oh,
wait, litigators might not be too sad it is highly
doubtful that entities subject to those strict
restrictions will jump to developing compliance
plans without trying to bring EPA to court. h

Softs and
Metals

August 2015

Email: olga@ze.com

Power

Even higher emission reduction rates are set for


the state of Minnesota (40%) and North Dakota
(45%), the MRO subjects. With such high targets
in sight, it is no surprise MRO released that happy
anniversary to our reliability mandate message.
EPA, FERC, and DOE announced that these three
agencies will coordinate their efforts in ensuring
reliable power supply during the Clean Power Plan
implementation. EPA emphasizes that targets can
be met through various measures, and states are
not limited only to renewables; they can also do so
by increasing efficiency and/or introducing
carbon trading systems. Besides, multiple states
can combine efforts in order to meet goals as part
of the grid. However, being part of the grid as a
solution raises few question: How the jurisdictional
authority will be decided on since the Clean Power
Plan is developed for specific states while a grid is
usually managed by independent entities, such as
ISOs and RTOs, which spread over multiple
regions but do not necessarily cover complete
states geographically? Will states have the
authority over system operators to dictate
dispatch rules?

Olga Gorstenko

Editorial

According to Forbes, the states above are some


of the poorest states, with the lowest income.
The poorest states will have to cut emissions at
very high rate, up to 37%. Switching to
intermittent renewables requiring more
investments in system upgrades, storage, and
ancillary services is unlikely to be that magic wand
that will transform economies of those states from
ashes to riches. The opposite outcome is
more likely.

Editor-In-Chief

Summary

Mississippi 1185 => 945; 20%


Louisiana 1618 => 1121; 31%
Alabama 1518 => 1018; 33%
New Mexico 1798 => 1146; 36%
Arkansas 1779 => 1130; 37%
West Virginia 2064 => 1305; 37%

Editorial
Editorial

average of 2012 fossil fueled-fired electrical


generation introduced to reflect each states
unique power supply mix. The selected algorithm
created very interesting outcomes. Just look at
how some of the 2012 emissions versus
reduction targets for 2030, both in lbs/Net
MWh, and percentage of such reduction targets
are distributed:

Summary

Power

Editorial
Power
Coal

This full-day course will provide information on the mechanics of how successful participants
will offer their demand response capacity into Ontarios electricity market. It will be most
relevant to organizations that have registered to participate in the first auction, but is open to
all stakeholders.

Nat Gas

In December 2015, Ontarios first Demand Response Auction will be held. In order to prepare
participants for the auction, the IESO is hosting a training course on September 24.

Petroleum

IESO to Host Training Course for Ontarios


First Demand Response Auction

See the original announcement.

Softs and
Metals

ZEMA collects thousands of regular data reports on power, more than 1,500 of which are based in North America. To
learn more about ZEMAs huge data library, visit www.ze.com/the-zema-solutions/data.

Finance

PJM Holds Capacity Auction with New Capacity


Performance Requirement

Weather and
Emissions

On August 21, 2015, PJM announced that the first PJM Interconnection
capacity auction to include the new Capacity Performance requirement attracted
a strong response from capacity resources prepared to meet the new pay-for-performance
standards. The resources that qualified as Capacity Performance units ensure that a reliable
electric supply will be available during extreme weather or other system emergencies.

In Depth

Guest
Feature

August 2015

Market
Analysis

As part of the phase-in of the new standard, at least 80% of the cleared capacity in
2018-2019 auction was required to meet Capacity Performance requirements. The remainder
is base capacity, which may be unable to commit to Capacity Performance standards and
therefore is subject to penalties only during the summer peak period. Capacity Performance
is targeted to be the only capacity product in PJM for the 2020-2021 delivery year. The base
capacity clearing price for the RTO is $149.98/MW-day, about $15 less than the Capacity
Performance price.

Data
Vendors

The 2018-2019 delivery year clearing price for Capacity Performance resources, which
include generation, demand response, and energy efficiency, is $164.77/megawatt-day for
all of PJM except the ComEd and Eastern MAAC delivery areas. For the two constrained areas,
the ComEd Capacity Performance clearing price is $215/MW-day; the Eastern MAAC price is
$225.42/MW-day.

Editorial
Nat Gas

NYMEX Amends 22 Electricity Products


Effective August 24, 2015, New York Mercantile Exchange, Inc. (NYMEX) amended the
termination of trading rules for 22 electricity products, as shown below in tables 1 and 2.
Clearing
Code

Chapter Daily Product Name

JD

637

I5

280

ERCOT North 345 kV Hub 5


MW Peak Futures

I7

282

I6

281

ERCOT North 345 kV Hub 5


MW Off-Peak Futures

I8

283

N1

288

ERCOT West 345 kV Hub 5


MW Peak Futures

R1

290

O1

289

ERCOT West 345 kV Hub 5


MW Off-Peak Futures

R4

291

In Depth

August 2015

Guest
Feature

176

Market
Analysis

L1

PJM Western Hub Peak


Calendar-Month Real-Time
LMP Futures

Data
Vendors

950

J4

Weather and
Emissions

174

PJM Western Hub Day-Ahead


Peak Calendar-Month 5 MW PWP
Futures

Finance

956

PJM Northern Illinois Hub


Day-Ahead Peak
Calendar-Day 5 MW
Futures
PJM Western Hub
Day-Ahead Peak
Calendar-Day 5 MW
Futures
PJM Western Hub
Real-Time Peak
Calendar-Day 5 MW
Futures
ERCOT North 345 kV Hub
5 MW Peak Calendar-Day
Futures
ERCOT North 345 kV Hub
5 MW Off-Peak
Calendar-Day Futures
ERCOT West 345 kV Hub
5 MW Peak Calendar-Day
Futures
ERCOT West 345 kV Hub
5 MW Off-Peak
Calendar-Day Futures

Softs and
Metals

152

PJM Northern Illinois Hub


Day-Ahead LMP Peak Calen- PNP
dar- Month 5 MW Futures

N3

Coal

Table 1 Monthly and daily futures electricity contracts


Chapter Monthly Product Name

Petroleum

See the original announcement.

Power

The auction attracted over 3,500 megawatts of new generation, including more than
2,900 MW of new generating units and over 500 MW of uprates to existing generating units.
A total of 11,084 MW of demand response was procured for 2018-2019, 1,484 MW of which
is Capacity Performance. Energy efficiency totaled 1,247 MW, with 887 MW being Capacity
Performance. Renewables resources wind, solar, and hydroelectric clearing in the auction
totaled 14,347 MW.

Clearing
Code

Summary

Power

The RTO clearing price in last years auction was $120/MW-day. The base capacity price in
ComEd is $200.21/MW-day; in Eastern MAAC, $210.63/MW-day; and in the PPL delivery
area in Pennsylvania, $75. Overall, the auction procured 166,837 megawatts of capacity,
which represents a 19.8% reserve margin. One megawatt is enough to power about
1,000 homes.

756B

801

ISO New England Mass Hub


Day-Ahead Off-Peak
Calendar-Month 5 MW Futures

IDO

959

894

PJM Northern Illinois Hub 5


MW Peak Calendar-Month
Real-Time LMP Futures

UD

763

Petroleum

CE

Power

B3

800

ISO New England Mass Hub


5 MW Peak Calendar-Month
Day-Ahead LMP Futures

Editorial

H2

688

NYISO Zone J Day-Ahead


Off-Peak Calendar-Day
5 MW Futures
ISO New England Mass
Hub Day-Ahead Peak
Calendar-Day 5 MW
Futures
ISO New England Mass
Hub Day-Ahead Off-Peak
Calendar-Day 5 MW
Futures
PJM Northern Illinois Hub
Real-Time Peak
Calendar-Day 5 MW
Futures

Rulebook Chapter Option Contract Title

9T

902A

9V

906A

INE

1272

Nat Gas

Table 2 Electricity options contracts


Clearing Code

Summary

U6

553

Power

D4

NYISO Zone J Day-Ahead OffPeak Calendar-Month 5 MW ZJO


Futures

Coal

NYISO Zone A 5 MW Peak Calendar-Month Day-Ahead


LBMP Option
NYISO Zone J 5 MW Peak Calendar-Month Day-Ahead
LBMP Option

Softs and
Metals

ISO New England Day-Ahead Peak Calendar-Month 5 MW Option

See the original announcement.

Finance

The ZEMA graph below shows PJM LMPs for Western Hub in comparison to settle prices of PJM Western Hub peak
futures on CME NYMEX this summer. Data: PJM Real Time Hub report and CME NYMEX Futures Settlement report.
Analysis like this can easily be generated within ZEMAs Market Analyzer tool. To learn more, book a complimentary
ZEMA demonstration.

Weather and
Emissions

Graph created with ZEMA

Data
Vendors
Market
Analysis
Guest
Feature

In Depth

August 2015

Summary
Editorial

Petroleum

Power
Petroleum
Finance

130,000 MT Caribbean to China


150,000 MT Caribbean to China
130,000 MT US Gulf Coast to Singapore
150,000 MT US Gulf Coast to Singapore
140,000 MT Caribbean to Caribbean
70,000 MT Caribbean to UK Continent
70,000 MT Caribbean to Mediterranean
90,000 MT Caribbean to UK Continent
90,000 MT Caribbean to Mediterranean
70,000 MT East Coast Mexico to UK Continent
70,000 MT East Coast Mexico to Mediterranean
70,000 MT East Coast Mexico to US Gulf Coast
50,000 MT East Coast Mexico to US Gulf Coast

Softs and
Metals

Four assessments would be published on a lump-sum basis and nine assessments would be
published on a Worldscale basis to reflect how these routes are traded. Platts would also
publish a dollar per metric ton value for these routes. The following new assessments are
under consideration:

Coal

Effective November 1, 2015, Platts proposes to launch five Suezmax,


seven Aframax, and one Panamax dirty tanker assessment from the Caribbean,
US Gulf Coast and East Coast Mexico, reflecting established trade routes of dirty products out
of the region. The new assessments reflect strong market interest in these routes and will be
based on modern Suezmax, Aframax, and Panamax tonnage.

Nat Gas

Platts to Launch New Americas Dirty Tanker Assessments

Weather and
Emissions
Data
Vendors
Market
Analysis

See the original announcement.

10

In Depth

August 2015

Guest
Feature

ZEMA is used by the front-, mid-, and back-office professionals in the petroleum market. To learn how ZEMA can
be tailored to your specific needs and give you access to the right information, book a complimentary ZEMA demo at
www.ze.com/book-a-demo.

Power
Coal

Platts to Launch New Baltic-UK Medium Range


Clean Tanker Assessment

Nat Gas

See the original announcement.

Petroleum

In addition, Platts intends to publish assessments for all quarterly DFL and Forward Dated
Brent values falling within the period of 36 months from the date of publication. Platts
currently publishes six quarterly and three annual DFL and Forward Dated Brent assessments
DFL. There would be no change to the number of annual DFL and Forward Dated
Brent assessments.

The new daily assessment would aim to capture newly established supply trends of refined
products out of the region following a significant increase in Russian exports of ultra-low-sulfur
diesel from the Baltic region.

Market
Analysis

ZEMA, ZEs data management solution, collects over 300 Platts records on petroleum and other liquids. To learn more
about ZEMAs vast data library, visit www.ze.com/the-zema-solutions/data-coverage.

Data
Vendors

See the original announcement.

Weather and
Emissions

This assessment would reflect the Baltic to UK Continent route for a clean MR tanker carrying
a cargo of 40,000 mt. The assessment would reflect loadings from Primorsk and discharge at
ports including Amsterdam, Hamburg and Dunkirk. This new assessment would be published
in Platts Clean Tankerwire and PlattsTanker Alert page PGT 1910.

Finance

The new assessment would reflect modern MR tonnage, and it would be published on a
Worldscale basis to reflect how this route is most commonly traded. Platts would also publish
a dollars-per-metric ton value for this route.

Softs and
Metals

On October 1, 2015, Platts proposes to launch a new clean Medium Range (MR) tanker
freight rate assessment reflecting flows from the Baltic to UK Continent.

Platts to Assess Singapore Front Month Swaps


and European East-West Fuel Oil

In Depth

11

Guest
Feature

Effective October 1, 2015, Platts intends to launch assessments for the value
of the 180 CST Singapore Fuel Oil cargo swaps, 380 CST Singapore Fuel Oil cargo swaps, and
380 CST and East-West fuel oil swap spreads, which represents the difference between the
August 2015

Editorial

Effective October 1, 2015, In line with increasing transparency in the


Dated Brent to Brent Frontline Swap (DFL) market, Platts intends to publish assessments
for DFLs and the corresponding forward Dated Brent values for 36 months ahead of the date
of publication. Platts currently publishes DFLs and the corresponding Forward Dated
Brent values for seven months ahead of the date of publication, including the balance
month contract.

Summary

Petroleum

Platts to Publish Dated Brent to Brent Frontline Swap Values


for 36 Months Ahead

Editorial
Power

Platts will publish assessments for three full calendar months ahead of the date of
publication. Platts will publish bids, offers, and interest to trade these swaps in the
Platts Market on Close assessment process.

Summary

Platts will add these assessments to its existing fuel oil derivative suite in order to enhance its
coverage of the fuel oil market and better represent the key high sulfur fuel oil arbitrage route
between Europe and Asia.

Petroleum

comparable months 380 CST Singapore Fuel Oil cargoes and FOB Rotterdam 3.5% Fuel Oil
Barge swaps, at 16:30 London time.

See the original announcement.

Petroleum
Nat Gas

The ZEMA graph below highlights the spread between on 180cst and 380cst Index Futures
for Singapore Fuel Oil on the SGX. Data: SGX Derivatives-Delayed Prices report. To learn more
about how ZEMA can help with your data and analysis needs, book a complimentary ZEMA
demonstration.

Coal
Softs and
Metals

Graph created with ZEMA


Finance
Weather and
Emissions

Platts to Launch Weekly DINP and DOTP Assessments

Data
Vendors

As of October 1, 2015, Platts proposes to launch US diisononyl phthalate


(DINP) and dioctyl terephthalate (DOTP) assessments on a weekly basis in order to
capture market liquidity. Specifications for standard DINP are: Density between
0.97-0.98 g/cm3. The proposed weekly domestic delivered East of the Rockies (DER) price
assessment to medium-sized customers by tank car or truck would reflect a cargo size of
44,000-45,000 lb. Larger cargo sizes may be assessed, but will be normalized to standard
volumes. Minimum purity level would be at 99.6% with a maximum water content of 0.05%.

Market
Analysis

12

In Depth

August 2015

Guest
Feature

Specifications for DOTP are: Density between 0.98-0.99 g/cm3. The proposed weekly
domestic delivered East of the Rockies (DER) price assessment to medium-sized customers
by tank car or truck would reflect a cargo size of 44,000-45,000 lb. Larger cargo sizes may be

Editorial

To learn more about the price of petroleum products in the United States, you can use ZEMA to view records
from and the US Energy Information Administration (EIA). To book a complimentary ZEMA demonstration, visit
www.ze.com/book-a-demo/.

Summary

See the original announcement.

Petroleum

assessed, but will be normalized to standard volumes. Minimum purity level would be at 99%
with a maximum water content of 0.1%.

Power

Platts to Launch New Asia Clean Tanker Assessments

Petroleum

Effective October 1, 2015, Platts proposes to add two new clean


Medium Range (MR) tanker freight rate assessments reflecting flows from
Arab Gulf and West Coast India to South Africa. The new assessments would aim to capture
newly established supply trends of refined products out of these regions to meet
South Africas rapidly growing import requirements.

Softs and
Metals
Finance

ARAB GULF TO SOUTH AFRICA: This assessment would reflect the Arab Gulf to South Africa
route for a clean MR tanker carrying a cargo of 35,000 mt. The assessment would reflect
loadings from Jubail and discharge into Durban followed by Mossel Bay as the discharge
basis port. Fixtures to Cape Town would be considered in the assessment and normalized to
Durban followed by Mossel Bay.

Coal

WEST COAST INDIA TO SOUTH AFRICA: This assessment would reflect the West Coast India to
South Africa route for a clean MR tanker carrying a cargo of 35,000 mt. The assessment would
reflect loadings from Sikka and Vadinar and discharge into Durban followed by Mossel Bay as
the discharge basis port. Fixtures to Cape Town would be considered in the assessment and
normalized to Durban followed by Mossel Bay.

Nat Gas

The new assessments would reflect modern MR tonnage. Both assessments would be
published on a Worldscale basis to reflect how these routes are most commonly traded. Platts
would also publish a dollars-per-metric ton value for these routes.

Weather and
Emissions

These new assessments would be published in Platts Clean Tankerwire and Platts Tanker
Alert page PGT 2920.
See the original announcement.

Data
Vendors
Market
Analysis
Guest
Feature

13

In Depth

August 2015

Editorial
Power

As of September 1, 2015, Platts has published outright price values for its eight
US Gulf Coast, Atlantic Coast and West Coast vacuum gasoil (VGO) assessments. Platts is
also considering discontinuing VGO assessments expressed as differentials to gasoline and
diesel benchmarks.

Summary

Petroleum

Platts Publishes Outright Price Values for


Eight US Coastal Vacuum Gasoil Assessments

Petroleum

These outright price assessments are published in US dollars per barrel, and
complement existing assessments of VGO, which are published as differentials for 0.5%,
1%, and 2% sulfur VGO.
See the original announcement.

Platts Launches Six US and Canadian Daily


Medium Range Clean Tanker Assessments

Nat Gas

To learn more about petroleum prices in the United States, use ZEMA to view records from Platts. For more information,
visit www.ze.com/the-zema-solutions/.

Effective September 1, 2015, Platts launched six new daily Medium Range clean tanker
assessments from the US and Canada. The new assessments reflect established trade routes
for clean products out of these regions, and are based on modern MR tonnage.

Coal

Each assessment was published on a lump-sum basis and expressed as US dollars per
voyage, to reflect how these routes are traded. Platts will also publish the equivalent US dollar
per metric ton value for these routes.

Softs and
Metals

14

In Depth

August 2015

Guest
Feature

US Gulf Coast to Ecuador: This assessment reflects the US Gulf Coast to Ecuador route for a
clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US
Gulf Coast ports such as Texas City, Houston, and Corpus Christi, and discharge at the ports of
La Libertad and Esmeraldas (Balao).

Market
Analysis

US Gulf Coast to Peru: This assessment reflects the US Gulf Coast to Peru route for a clean MR
tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US Gulf Coast
ports such as Houston, Pascagoula, and Corpus Christi, and discharge at ports including
Callao and La Pampilla.

Data
Vendors

US Gulf Coast to Chile: This assessment reflects the US Gulf Coast to Chile route for a clean
MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from US Gulf
Coast ports such as Port Arthur, Port of South Louisiana, and Houston, and discharge at ports
including Quintero, Mejillones, and Iquique.

Weather and
Emissions

US Gulf Coast to East Coast Mexico: This assessment reflects the US Gulf Coast to East Coast
Mexico route for a clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects
loadings from the US Gulf Coast, such as Port Arthur, Houston, and the Galveston Lightering
and Anchorage area, and discharge at ports including Coatzacoalcos (Pajaritos) and Tuxpan.

Finance

The following are the new assessments that were launched:

Editorial
Power
Petroleum

The new Americas clean tanker assessments will appear in Platts Clean Tankerwire, on
Platts Global Alert page 1912, and in the price database.

Summary

East Coast Canada to US Atlantic Coast: This assessment reflects the East Coast Canada to
US Atlantic Coast route for a clean MR tanker carrying a cargo of 38,000 mt. The assessment
reflects loadings from ports such as Saint John and Whiffen Head (Come By Chance)
and discharge at ports including Boston, Portland, and New York.

Petroleum

US Gulf Coast to Caribbean: This assessment reflects the US Gulf Coast to Caribbean route
for a clean MR tanker carrying a cargo of 38,000 mt. The assessment reflects loadings from
US Gulf Coast ports such as Houston, Port Arthur, Port of South Louisiana, and Corpus Christi,
and discharge at ports including Puerto Prodeco, Cartagena, and Barranquilla in Colombia;
Jose in Venezuela; St. Eustatius; Rio Haina in Dominican Republic; Kingston in Jamaica; and
St. Lucia.

See the original announcement.

Nat Gas

Platts Launches US Scrap Lead-Acid Battery Price Assessments

Coal

Effective August 4, 2015, Platts has added a new weekly price assessment
for scrap used lead-acid batteries reflecting market activity in the US Northeast.
The new assessment is for used 50% lead-acid, starter lighter ignition automotive batteries,
picked up US Northeast. The Northeast region for price normalization will include New York,
New Jersey, Pennsylvania, Delaware, Maryland, Connecticut, Massachusetts, Vermont,
New Hampshire, Rhode Island, and Maine.

Data
Vendors

Platts Launches Asian Metallocene C6 LLDPE Assessments

Market
Analysis

On August 3, 2015, Platts announced its intention to assess CFR China,


CFR Southeast Asia, and CFR South Asia metallocene C6 linear low density
polyethylene prices on a weekly basis. The assessment methodology for
metallocene C6 LLDPE is as follows:

Guest
Feature

Assessment window: Weekly assessments of metallocene C6 LLDPE based on latest


information sourced from the market up to the close of the assessment window at 4:30 p.m.
Singapore time (0830 GMT) on Wednesday.

15

In Depth

Timing: Cargoes for delivery 15-30 days forward from date of publication.
August 2015

Weather and
Emissions

ZEMA collects more than 600 petroleum data reports from North America alone. To find out how ZEMA integrates this
data with downstream systems, visit www.ze.com/the-zema-solutions/integration.

Finance

See the original announcement.

Softs and
Metals

The specification is for a minimum quantity of one truckload (42,000-44,000 lb), normalized
to a typical order size one to five truckloads, packaged in shrink-wrapped pallets or skids,
pallet size 40 or 44 by 48, maximum 3,600 lb per skid, no more than three battery layers
separated by cardboard sheets; assessed in a cents/lb range reflecting the majority of
business, normalized to a picked-up US Northeast basis, delivery within 30 days, net-30-day
payment terms.

Summary
Editorial

Petroleum

Basis and locations: CFR China: Shanghai, Ningbo, Xiamen, Shenzhen, Huangpu, Guangzhou,
Xingang and Qingdao, Shantou, Tianjin; CFR South East Asia: Indonesia (Jakarta, Surabaya),
Singapore, Philippines (Manila Bay), Malaysia (Port Klang),Thailand (Map Tap Phut, Laem
Chabang), Vietnam (Ho Chi Minh); CFR South Asia: India (Kolkata, Chennai, Mumbai, Nhava
Sheva), Pakistan (Karachi).
Cargo size: 100-500 mt

Power

Terms and conditions: LC 30-90 days credit terms

Petroleum

Quality specification: 1-Hexene comonomer with a density of 918-940 kg/m3 with a melt
flow index between 1.0-4.5
See the original announcement.

Platts Publishes New West African Crude Oil Assessments

Nat Gas

As of August 3, 2015, Platts commenced daily assessments for four new


West African crudes. The new assessments are for two Nigerian grades, one
Chadian grade, and one Ghanaian grade.

Finance

Finally, Platts publishes assessments for Jubilee crude, produced offshore Ghana. Jubilee
currently has production of around 100,000 b/d and is produced and loaded from the
Kwame Nkrumah FPSO.

Weather and
Emissions

See the original announcement.

Argus Launches Daily European Fuel Oil


and Gasoil Diesel Assessments

PA5001548

PA5001549

Ice Gasoil
Settlement

Category
>Products>Fuel oil>Northwest
Europe
>Products>Fuel oil>Northwest
Europe
>Products>Gasoil/Diesel/
Heating oil>Northwest Europe
16

In Depth

August 2015

Fuel oil 3.5% NWE cif


Tue snapshot
Fuel oil 3.5% NWE cif
Tue snapshot
Gasoil diesel French
10ppm NWE cif Tue
snapshot

Differential
basis

Guest
Feature

PA5001548

Description

Market
Analysis

Price type

Data
Vendors

On August 4, 2015, Argus introduced the following weekly series to Argus Caspian Market.
These daily assessments have time stamps of 6, continuous forwards of 0, and are in USD/t.
PA-code

Softs and
Metals

Platts also publishes assessments for Chads Doba grade. Doba is a heavy sweet acidic crude
oil grade produced primarily in the south of the country. Its production is currently around
100,000 b/d, loaded from the Kome-Kribi terminal offshore Cameroon.

Coal

Platts now publishes assessments for Nigerias Erha and Usan. Erha is a light sweet crude oil
grade produced offshore Nigeria. Production is currently around 100,000 b/d from the Erha
FPSO. Usan is a medium sweet grade with a current production rate of around 110,000 b/d.
It is produced offshore Nigeria from the Usan FPSO, which has a capacity of 180,000 b/d.

PA5001549

PA5001549

Category

Ice Gasoil
Settlement

>Products>Gasoil/Diesel/
Heating oil>Northwest Europe

Ice Gasoil
Settlement

>Products>Gasoil/Diesel/
Heating oil>Northwest Europe

Ice Gasoil
Settlement

>Products>Gasoil/Diesel/
Heating oil>Northwest Europe

Power

Gasoil diesel French


10ppm NWE cif Tue
snapshot
Gasoil diesel French
10ppm NWE cif Tue
snapshot
Gasoil diesel French
10ppm NWE cif Tue
snapshot

Differential
basis

Petroleum

Snapshots will appear in the DARK file of the DARK folder, on ftp.argusmedia.com.
See the original announcement.

Nat Gas

ZEMA collects over 100 Argus reports regularly, more than 40 of which pertain to petroleum products. To find out how
ZEMA can convert this data into sophisticated analyses, visit www.ze.com/the-zema-solutions/analytics.

Argus Introduces Daily Middle East


Butane and Propane Assessments

Continuous
Description
forward

PA0016945 4

PA0016944 17

PA0016943 17

Butane Argus Middle East Index >LPG>Mideast Gulf>Butane


Propane Argus Middle East
>LPG>Mideast Gulf>Propane
Index
Butane Argus Middle East Index
>LPG>Mideast Gulf>Butane
average month
Propane Argus Middle East
>LPG>Mideast Gulf>Propane
Index average month

Weather and
Emissions

Category

Finance

PA0016946 4

Softs and
Metals

Price type

Coal

Effective August 3, 2015, Argus introduced the following daily codes, which
have time stamps of 8 and are in USD/t. These series can be found in the dpgasia and dpg
data file in the \DLPG folder of ftp.argusmedia.com.
PA-code

Editorial

PA5001549

Description

Summary

Price type

Petroleum

PA-code

See the original announcement.

Data
Vendors
Market
Analysis
Guest
Feature

17

In Depth

August 2015

PA-code

Description

Power

The weekly codes below have time stamps of 0, price types of 8, continuous forwards of
1, and are in USC/lb:
Category

Petroleum

PA0016916 Styrene fob USGC VWA month >Petrochemicals>Styrene>North America


Styrene USGC large buyer
index month

PA0016917

>Petrochemicals>Styrene>North America

ZEMA collects more than 90 Argus reports from North America alone, more than 40 of which pertain to
petroleum products. To find out how ZEMA can analyze this data and share this analysis with downstream systems, visit
www.ze.com/the-zema-solutions.

Coal

Argus Introduces Asia-Pacific Forwards for Crude,


Refined Products, and Crack Spreads

Crude

FWDCrudeAsia

yyyymmddfwdcrudeasia.csv

Refined Products

FWDRefProdAsia

yyyymmddfwdrefprodasia.csv

Crack Spreads

FWDCrackSpreadsAsia

yyyymmddfwdcrackasia.csv

Weather and
Emissions

Filename

Finance

Folder

Softs and
Metals

Effective July 22, 2015, Argus has introduced new Asia-Pacific Forwards for Crude, Refined
Products, and Crack Spreads. Each data set will be available through the Argus FC API and
also via ftp.argusmedia.com at 8:00 a.m. CST.
Product

The following new products have been added to support this data:
Crude oil Asia fixed price

175

Crude oil Asia differential

176

Refined products Asia fixed price

177

Refined products Asia differential

178

Refined products Asia crack spread

179

ICE Brent futures (Singapore close)

180

ICE Gasoil futures (Singapore close)

181

Crude oil Dubai swap

Guest
Feature

174

Market
Analysis

Description

Data
Vendors

Product ID

Nat Gas

See the original announcement.

18

In Depth

August 2015

Editorial

As of July 23, 2015, Argus added series to the Argus DeWitt Benzene and
Dervatives data feed. For FTP subscribers, these changes apply to the
dbenzeneweekly filein the DATA/DBenzeneWeekly folder of ftp.argusmedia.com.

Summary

Petroleum

Argus Adds North American Styrene Assessments

256

Fuel oil HS 180 cst Singapore swap

257

Fuel oil HS 380 cst Singapore swap

258

Gasoil 0.001% Singapore

259

Gasoil 0.005% Singapore

260

Gasoil 0.25% Singapore

261

Gasoil 0.50% Singapore

262

Gasoil Singapore swap

263

Gasoline 92r Singapore

264

Gasoline 95r Singapore

265

Gasoline 97r Singapore

266

ICE Brent futures (Singapore Close)

267

ICE Brent swap

268

ICE Gasoil ARA (Singapore close)

269

Jet fuel Singapore swap

270

Murban

271

Naphtha Japan swap

272

Naphtha Singapore swap

273

Oman

274

Propane AFEI

275

Upper Zakum

Data
Vendors

ESPO Blend

Weather and
Emissions

255

Finance

Dubai swap

Softs and
Metals

254

Coal

Butane AFEI

Nat Gas

253

Petroleum

Basrah Light

Power

252

The latest metadata is available via the FCDOC folder of ftp.argusmedia.com.


See the original announcement.

Market
Analysis

NYMEX Introduces New Light Louisiana


Sweet Average Price Options

Guest
Feature

Effective September 14, 2015, New York Mercantile Exchange, Inc. (NYMEX)
will list three new European-style Light Louisiana Sweet (LLS) average price option contracts
for trading on NYMEX trading floor and CME Globex, and for submission for clearing through
CME ClearPort. Also concurrent with the launch of these contracts CME will permit block
trading pursuant to Rule 526 (Block Trades) in these contracts.
19

In Depth

August 2015

Editorial

Description

Summary

MarketID

Petroleum

The following new markets have been added to support this data:

Settlement Method

Financial

Financial

Financial

Option Type

European

European

European

Contract Size

1000 Barrels

1000 Barrels

1000 Barrels

Listing Schedule

Current year+5
consecutive years

Current year+5 consec- Current year+5 consecutive


utive years
years

Minimum Price
Fluctuation

$0.01/barrel

$0.01/barrel

$0.01/barrel

Value per Tick

$10.00

$10.00

$10.00

First Listed Contract

October 2015

October 2015

October 2015

Block Trade Minimum


Threshold

10

10

10

Termination of Trading

Last business day


of the underlying
contract month

Last business day of


Last business day of the
the underlying contract
underlying contract month
month

Market
Analysis

CME Globex, CME ClearPort &


NYMEX Trading Floor

Data
Vendors

Venue

CME Globex, CME CME Globex, CME


ClearPort & NYMEX ClearPort & NYMEX
Trading Floor
Trading Floor

Weather and
Emissions

1130

Finance

1129

Softs and
Metals

1128

Coal

Rule Chapter

Nat Gas

XAO

Petroleum

LRO

Power

WJO

See the original announcement.

In Depth

20

Guest
Feature

ZEMA collects more than 100 regular reports from CME, including more than 20 on petroleum and other liquids. To learn
more about ZEMAs extensive data coverage, visit www.ze.com/the-zema-solutions/data.

August 2015

Editorial

Commodity Code

Summary

Contract Title

LLS (Argus) vs. WTI LLS (Argus) vs. Brent


LLS (Argus) Crude Oil Average
Crude Oil Average Crude Oil Average Price
Price Option
Price Option
Option

Petroleum

The specifications for these contracts are as follows:

Posted benchmark price

LLDPE 1608

RMB 8,465 / ton

PVC 1608

RMB 5,125 / ton

Power

Contract

Petroleum

See the original announcement.

Platts to End Northwest Europe, Italy, and Singapore


Visbreaking Yields, Netbacks, and Margins

Nat Gas

Effective January 15, 2016, Platts is proposing to discontinue all daily, weekly and monthly
Northwest European, Italy and Singapore visbreaking yields, netbacks and margins. Platts
intends to discontinue these visbreaking prices because they do not reflect current refining
configurations in the respective regions.

Market
Analysis
Guest
Feature

21

In Depth

Arab Heavy
Arab Light
Arab Medium
Azeri Light
Basrah Light
Es Sider
Iran Heavy
Iran Light
Kirkuk
Saharan Blend
Suez Blend
Urals
Zuetina

Data
Vendors

Arab Heavy
Arab Light
Arab Medium
Azeri Light
Basrah Light
Brent
Ekofisk
Flotta Gold
Forties
Gullfaks
Iran Heavy
Iran Light
Kuwait
Statfjord
Urals

Weather and
Emissions

Italy Crude:

Finance

Northwest Europe Crude:

Softs and
Metals

These prices are published on Platts Global Alert pages 1812, 1822, 2812, 1814,
1824, and 2814. The daily prices are also published in the Crude Oil Marketwire, and the
weekly and monthly prices in Oilgram Price Report. The prices are also published in Platts
Market Data.

Coal

The current visbreaking yield models reflect a topping configuration, primarily crude units,
and reformers. Refiners in these regions have increasingly added catalytic crackers, which are
already reflected in the cracking yields, netbacks, and margins. Platts will continue to publish
these cracking prices.

August 2015

Editorial

Starting August 17, 2015, the Dalian Commodity Exchange (DCE) has
listed the following contracts for trading:

Summary

Petroleum

DCE Lists New Petroleum Product Contracts

Editorial
Power

Kuwait
Minas
Murban
Oman
Qatar Land
Qatar Marine
Tapis

Summary

Arab Heavy
Arab Light
Arab Medium
Attaka
Das Blend
Dubai
Duri

Petroleum

Singapore Crude:

See the original announcement.

Petroleum

Platts to Discontinue FOB La Skhirra Zarzaitine


Crude Oil Outright and Differential Assessments

Nat Gas

As of December 1, 2015, Platts will discontinue its FOB La Skhirra Zarzaitine


outright and differential assessments. Platts is discontinuing these assessments due to low
export volumes and low spot market liquidity for the grade.

Weather and
Emissions

Platts to Discontinue Stybarrow, AHS Crude Index

Data
Vendors

Effective November 2, 2015, Platts will discontinue its assessments


for Australias Stybarrow crude, following the shut in and disconnection of the oil field.

Market
Analysis

BHP Billiton has shipped its final Stybarrow crude cargo from the oil field off Western
Australia. The field, owned 50:50 by a joint venture between BHP Billiton and Woodside
Petroleum, have produced a total of nearly 60 million barrels. The field started up producing
at close to 80,000 b/d, but output had fallen to 3,476 b/d by the first quarter of 2015,
according to data from Woodside.

In Depth

22

Guest
Feature

In the interim period, Stybarrow crudes spot price will be assessed based on its gross product
worth using the last known crude assay and yields, and values relative to other similar crudes
in the region. For a complete list of all affected assessments and their PGA codes, please see
the table below.
August 2015

Finance

See the original announcement.

Softs and
Metals

Zarzaitine, which is produced in Algeria, is delivered via pipeline to the Tunisian port of La
Skhirra in the Mediterranean where it is then loaded for export. Loadings of the grade currently
stand at around 30,000 b/d, equivalent to around a single cargo per month. The grade is
currently traded via tender approximately a full month in advance of loading and is not
regularly traded on a spot basis.

Coal

Platts currently assesses FOB La Skhirra Zarzaitine on a daily basis, reflecting cargoes of
between 60,000-140,000 mt loading out of the Mediterranean port of La Skhirra, in Tunisia.
Currently, Platts publishes both a FOB La Skhirra Zarzaitine differential assessment (AALOY00)
and an outright assessment (AAHMO00). These assessments currently appear on
Platts Global Alert page MH1234, in the Platts Crude Oil Marketwire, and Platts Oilgram
Price Report.

Stybarrow FOB Australia Spore vs ADB

AAXQC00

Asian Heavy Sweet Index Spore Close

AAPDP00

Asian Heavy Sweet Index Spore vs ADB

AAPDO00

Asian Heavy Sweet Index London Close

AARAH03

Stybarrow FOB Australia Spore Close MAvg

AARAG03

Stybarrow FOB Australia London Close MAvg

AAXCQ03

Asian Heavy Sweet Index Spore Close MAvg

AAPDP03

Asian Heavy Sweet Index Spore vs ADB MAvg

AAPDO03

Asian Heavy Sweet Index London Close MAvg

Petroleum

AARAI00

Power

Stybarrow FOB Australia Spore Close

Nat Gas

See the original announcement.

Platts to End CIF Augusta Kumkol


Outright and Differential Assessments

Coal

As of October 1, 2015, Platts confirms that it will discontinue its CIF Augusta Kumkol
outright and differential assessments. Platts is discontinuing these assessments due to the
conclusion of Kumkol exports out of the Black Sea.

Softs and
Metals
Finance

Platts currently assesses CIF Augusta Kumkol on a daily basis, reflecting cargoes of between
30,000-100,000 mt loading out of the Black Sea and delivered into the Mediterranean.
Currently, Platts publishes both a CIF Augusta Kumkol differential assessment (AALOW00)
and an outright assessment (AAHMP00). These assessments currently appear on
Platts Global Alert page MH1220 and in the Platts Crude Oil Marketwire.

Weather and
Emissions

Kumkol, which is produced in Kazakhstan, was previously delivered via rail to the Black Sea
port of Batumi in the Black Sea where it was then loaded for export. Loadings of the grade
once averaged some 170,000 mt a month, but volumes have been gradually declining over
the last several years and have been averaging below 30,000 mt per month for more than a
year. Exports of the grade are expected to halt completely in 2015.

Data
Vendors

See the original announcement.

Market
Analysis

Platts Discontinues Daily US Styrene Balance


of the Month Assessment

Guest
Feature

Effective September 1, Platts discontinued its daily US styrene balance of the


month assessment due to changes in market dynamics. The balance of the
month assessment was not reflective of trade in the market and has been replaced by
an M1 and M2 assessment.

23

In Depth

August 2015

Editorial

AARAH00

Summary

Assessment

Petroleum

Code

These assessments were also published in the Platts Petrochemical Alert on page 339 and
page 234.

Editorial

AAPDZ00 Styrene bal mo


AAPDZ03 Styrene FOB USG BalMo cts/lb MAvg
AAPDZ04 Styrene FOB USG BalMo cts/lb WAvg

Summary

Petroleum

This assessment was listed under the following codes in the Platts price database:

Power

See the original announcement.

Petroleum

Platts Ends All US Methyl Ethyl Ketone and


Methyl Isobutyl Ketone Assessments
As of September 1, 2015, Platts discontinued all methyl ethyl ketone and methyl
isobutyl ketone assessments in the US due to a lack of liquidity in these markets.

Nat Gas

Affected assessments:
MEK FOB USG Weekly PHADQ00 PHAYT03
MEK DER US Domestic Weekly PHADT00 PHAYU03

Coal

MIBK FOB USG Weekly PHADW00 PHAYX03


MIBK DER US Domestic Weekly PHADZ00 PHAYY03

Softs and
Metals

These assessments could be found on Platts Petrochemical Alert and in the


Global Solventswire.
See the original announcement.

Finance

Platts Discontinues Weekly US Mixed Xylenes Contract

This assessment was listed under the following codes in the Platts price database:

Data
Vendors

Platts last published a weekly US mixed xylene contract assessment in January 2015, when a
settlement was last disclosed by the parties involved and verified per Platts methodology.

Weather and
Emissions

Effective September 1, Platts has discontinued its weekly US mixed xylenes


contract assessment due to changes in market dynamics. A market-wide contract
settlement was no longer openly available and as such the market no longer references or
uses the published settlement.

Mixed Xylene USG CP PHBHT03.


Market
Analysis

The assessment was also published in the Platts Petrochemical Alert on page 329
and page 234.
See the original announcement.

Guest
Feature

24

In Depth

August 2015

Summary
Editorial

Petroleum

Power
Petroleum

Argus Discontinues Multiple Eugene Island Crude Assessments

PA-code

Continuous
Description
forward

Category

Frequency
Coal

Price
type

>Crude>North
America>US Gulf coast

Quarterly

PA5000281 1, 2, 8 0

Eugene Island month


1 snapshot

>Crude>North
America>US Gulf coast

Weekly

PA5000449 1, 2, 8 0

Eugene Island month


1 weekly avg

>Crude>North
America>US Gulf coast

Weekly

PA5001238 4, 49

Eugene Island weighted


>Crude>North
average month 1 snapshot America>US Gulf coast

Weekly

Eugene Island weighted


average month 1 monthly
avg

>Crude>North
America>US Gulf coast

Monthly

Eugene Island weighted


average month
1 quarterly avg

>Crude>North
America>US Gulf coast

Quarterly

Eugene Island weighted


average month
1 weekly avg

>Crude>North
America>US Gulf coast

Weekly

PA5001240 4, 49

PA5001241 4, 49

Guest
Feature

Eugene Island month


1 quarterly avg

Market
Analysis

PA5000143 1, 2, 8 0

Data
Vendors

Monthly

Weather and
Emissions

>Crude>North
America>US Gulf coast

Finance

Eugene Island month


1 monthly avg

Softs and
Metals

PA5000018 1, 2, 8 0

PA5001239 4, 49

Nat Gas

Effective August 21, 2015, Argus stopped the following codes in the DAGM data
modules in the DAGM folder of the ftp.argusmedia.com server. The following codes
have time stamps of 2, WTI as their differential basis, and are in USD/bl.

See the original announcement.


25

In Depth

August 2015

Category

Frequency

PA0000114

1, 2, 3, 6, 7, 8

Eugene Island
month

>Crude>North America>US Gulf


coast

Daily

>Crude>North America>US Gulf


coast

Daily

>Crude>North America>US Gulf


coast

Daily

PA0004058

49

Nat Gas

4, 49

Petroleum

PA0003355

Eugene Island
weighted average
month
Eugene Island MTD
weighted average
month

Power

Description

Editorial

Price type

Summary

PA-code

Petroleum

Furthermore, effective August 25, 2015, Argus discontinued the following codes in the DHC &
DHCA data modules in the DCRDEUS folder of the ftp.argusmedia.com server.
These codes have time stamps of 2, continuous forwards of 1, WTI as their differential basis,
and are in USD/bl.

See the original announcement.

Argus Stops Druzhba Czech Crude Export Assessment


Coal

Price type Description

PA0003396

1, 2, 3

Druzhba Czech
monthly price

Differential basis Category

Frequency

North Sea Dtd


mth avg

Monthly

>Crude>RussiaCaspian>Druzhba

Finance

PA-code

Softs and
Metals

Effective August 5, 2015, Argus stopped publishing the following code to


the Argus CIS Crude export data module. The following PA code details have
been removed from the DCISCR module in the DCISCR folder on ftp.argusmedia.com.

See the original announcement.

Weather and
Emissions

Argus Ends Russian Gasoil Cargo Assessments

PA Code

Price
Type

Continuous
Description
forward

Category

Frequency

Gasoil Russian cargo


NWE cif monthly avg

PA5000077 8

Gasoil Russian cargo >Products>Gasoil/


Monthly
W Med cif monthly avg Diesel/Heating oil>Russia

PA5000201 8

Gasoil Russian cargo


NWE cif quarterly avg

>Products>Gasoil/
Quarterly
Diesel/Heating oil>Russia

26

In Depth

August 2015

>Products>Gasoil/
Monthly
Diesel/Heating oil>Russia

Guest
Feature

Market
Analysis

PA5000076 8

Data
Vendors

As of July 31, 2015, Argus stopped the following series, which have time
stamps of 6. These series are in the DAGM data module in the DAGM folder
of the ftp.argusmedia.com.

Gasoil Russian cargo >Products>Gasoil/


Quarterly
W Med cif quarterly avg Diesel/Heating oil>Russia

1, 2, 3, 6,
0
7, 8

Gasoil Russian cargo


NWE cif snapshot

>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia

PA5000361

1, 2, 3, 6,
0
7, 8

Gasoil Russian cargo


W Med cif snapshot

>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia

Gasoil Russian cargo


NWE cif weekly avg

>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia

PA5000508 8

Gasoil Russian cargo


W Med cif weekly avg

>Products>Gasoil/
Weekly
Diesel/Heating oil>Russia

Petroleum

Power

PA5000507 8

Editorial

PA5000360

Summary

Petroleum

PA5000202 8

See the original announcement.

Nat Gas

As well, the following series are in the the DAGM data module in the DAGM folder
of the ftp.argusmedia.com.
1, 2,
6, 7

Gasoil Russian cargo NWE cif >Products>Gasoil/Diesel/


Fri Snapshot
Heating oil>Russia

Weekly

PA5001266

1, 2,
6, 7

Gasoil Russian cargo W Med >Products>Gasoil/Diesel/


cif Fri Snapshot
Heating oil>Russia

Weekly

Coal

PA5001265

Softs and
Metals

See the original announcement.

Furthermore, the following series are in the DLP files in the DEURO folder
of ftp.argusmedia.com.

Finance

1, 2, 6, 7 0

Gasoil Russian cargo


NWE cif

>Products>Gasoil/Diesel/Heating
Daily
oil>Russia

PA0000886

1, 2, 6, 7 0

Gasoil Russian cargo W


Med cif

>Products>Gasoil/Diesel/Heating
Daily
oil>Russia

PA0002308

1, 2

Gasoil Russian fob W


Med

>Products>Gasoil/Diesel/Heating
Daily
oil>Russia

PA0008682

1, 2, 8

Gasoil Russian cargo


NWE cif average month

>Products>Gasoil/Diesel/Heating
Monthly
oil>Russia

PA0008683

1, 2, 8

Gasoil Russian cargo W


Med cif average month

>Products>Gasoil/Diesel/Heating
Monthly
oil>Russia

Weather and
Emissions

PA0000885

Data
Vendors
Market
Analysis

See the original announcement.

Guest
Feature

27

In Depth

August 2015

Weekly

PA5000863

1, 2,
0
6, 7

Gasoil Russian cargo NWE cif


wed snapshot

>Products>Gasoil/Diesel/
Heating oil>Russia

Weekly

PA5000864

1, 2,
0
6, 7

Gasoil Russian cargo W Med cif >Products>Gasoil/Diesel/


wed snapshot
Heating oil>Russia

Weekly

Petroleum

See the original announcement.

NYMEX Delists Three RIN Futures

1158

D43

D4 Biodiesel RINs (Argus) 2013 Futures

1161

D53

D5 Advanced Biofuel RINs (Argus) 2013 Futures

1164

D63

D6 Ethanol RINs (Argus) 2013 Futures

Softs and
Metals

Contract Name

Coal

Contract Code

Nat Gas

On July 27, 2015, the New York Mercantile Exchange, Inc. (NYMEX) delisted
three Renewable Identification Number (RIN) futures contracts as noted in the table below.
These contracts were listed for trading on CME Globex and for submission for clearing via CME
ClearPort. There was no open interest in the contracts.
Rule Chapter

Power

Gasoil Russian fob W Med wed >Products>Gasoil/Diesel/


snapshot
Heating oil>Russia

Editorial

1, 2 0

Summary

PA5000841

Petroleum

And finally, the following series are in the dfsue files in the DFSUE folder
of ftp.argusmedia.com.

See the original announcement.

Finance

NYMEX Discontinues Singapore Fuel Oil Spread Futures


As of July 27, 2015, NYMEX delisted the futures contract identified below.
Contract Name

Rulebook Chapter

SFC

Singapore Fuel Oil 180CST (Platts) Brent Crack Spread Futures 213

Data
Vendors

This contract was listed for trading on CME Globex and for submission for clearing through
CME ClearPort.

Weather and
Emissions

Commodity Code

See the original announcement.

Market
Analysis
Guest
Feature

28

In Depth

August 2015

Summary
Editorial

Natural Gas

Power
Petroleum
Nat Gas

Energy Department Authorizes American LNG


Marketings Application to Export LNG

Coal

On August 7, 2015, the Energy Department announced that it has issued a final
authorization to American LNG Marketing LLC (American LNG) to export domestically
produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement
(FTA) with the United States.

Finance

The Energy Department conducted an extensive review of the American LNG application.
Among other factors, the Department considered the economic, energy security, and
environmental impacts and determined that exports at a rate of up to 0.008 Bcf/d for
a period of 20 years was not inconsistent with the public interest.

Weather and
Emissions

See the original announcement.


ZEMA collects over 700 data reports regarding natural gas. To learn more about ZEMAs vast data library,
visit www.ze.com/the-zema-solutions/data-coverage.

Market
Analysis

Effective October 1, 2015, Platts proposes launching a netforward value to


reflect the price of LNG imported into Brazil. Platts has observed over a period
of time that Brazil is a regular buyer of LNG cargoes used to augment its electricity
production during periods when hydropower is insufficient to meet its electricity demand. The
value achieved for these cargoes on a DES basis matches the prevailing value of LNG cargoes
in the East Atlantic plus a freight element.

Data
Vendors

Platts to Launch Brazil LNG Netforward

Guest
Feature

Platts is proposing to publish on a daily basis the value of LNG on a DES Salvador de Bahia
basis, based on the existing Platts East Atlantic Marker (EAM) plus the freight to Salvador de
Bahia, Brazil.
29

In Depth

August 2015

Softs and
Metals

American LNG is authorized to export LNG up to the equivalent of 0.008 billion cubic feet per
day (Bcf/d) of natural gas for a period of 20 years from the liquefaction facility located near
Medley, Florida in Miami-Dade County, Florida using approved ISO LNG containers.

Power
Petroleum

The ZEMA graph below shows forecasted gross imports and exports of LNG to the
United States up until December 2016. Data: EIA Forecast STEO NG Supply,
Consumption & Inventory. The storage volume data has been represented by the graph, which
can be easily applied as one of ZEMAs many visualization options, and graphs can be viewed
instantly as the analytics are built. To learn more about how ZEMA can help with your data and
analysis needs, book a complimentary ZEMA demonstration.

Editorial

See the original announcement.

Summary

Natural Gas

The netforward value will be published in US dollar per million British thermal units
($/MMBtu) each London business day, corresponding with the EAM, in the LNG Daily
publication and Platts Natural Gas Alert. In addition Platts will publish a number of
corresponding price comparisons for relevant markets and competing fuels.

Nat Gas

Graph created with ZEMA

Coal
Softs and
Metals
Finance
Weather and
Emissions

Platts Publishes New Transco and Tennessee


Natural Gas Assessments

Data
Vendors

Effective August 31, 2015, Platts added two new assessments to its daily and
monthly price surveys.
1. Transco, Zone 6 non-NY South:

Market
Analysis

Platts has seen consistent price disparities between gas delivered north of station 195 and
gas delivered south of station 195. To bring more price transparency to the region, Platts will
start assessing prices for gas delivered south of station 195.
The Transco, Zone 6, non-NY South specifications appears as follows:

30

In Depth

August 2015

Guest
Feature

Transco, Zone 6 non-NY South (daily and monthly survey) Deliveries from Transcontinental
Gas Pipeline from the start of zone 6 at the Virginia/Maryland border to Station
195 in York, Pennsylvania.

Power

The Tennessee, Zone 4-313 Pool specifications appears as follows:


Tennessee, Zone 4-313 Pool (daily and monthly survey) Transactions at Station 313
in Potter County, Pennsylvania, on Tennessee Gas Pipelines Zone 4 300 Leg.

Finance

ICE to List Three US Natural Gas Contracts

HHL

Minimum price
fluctuation

The price quotation convention shall be One tenth of a cent ($0.001) per MMBtu;
minimum price fluctuation may vary by trade type. Please see Table in Resolution 1
to this Chapter 18

31

In Depth

August 2015

Guest
Feature

Symbol

Market
Analysis

A monthly cash settled Exchange Futures Contract based upon the monthly price
published by NYMEX for the location specified in Reference Price A

Data
Vendors

Description

Weather and
Emissions

Effective September 28, 2015, ICE Futures US will list three new financial
natural gas futures and options contracts for trading. Each of the following is
for 25,000 MMBtus, cash settled in USD.
Henry LD1 Fixed Price Future 25K

Softs and
Metals

ZEMA collects more than 100 natural gas data reports from Platts alone. To learn more about ZEMAs vast data library,
visit www.ze.com/the-zema-solutions/data-coverage.

Coal

See the original announcement.

Nat Gas

The Tennessee Zone 4 Station 313 location appears in the Prices of Spot Gas Delivered to
Pipelines table in Inside FERCs Gas Market Report; Energy Trader and Gas Daily Price Guide;
in the Appalachia section of Gas Dailys Daily Price Survey table; and
Platts Natural Gas Alert pages 417, 490 and 511. Additionally, it appears in the Bidweek
Physical Basis Prices Delivered to Pipelines table in Inside FERCs Gas Market Report.

Petroleum

The Transco, Zone 6 non-NY South location appears in the Northeast section of the
Market Center Spot Gas Prices table in Inside FERCs Gas Market Report; Energy Trader and
Gas Daily Price Guide; in the Citygates section of Gas Dailys Daily Price Survey table; and
Platts Natural Gas Alert pages 433, 495 and 516. Additionally, it appears in the Northeast
section of the Market Center Bidweek Physical Basis Prices table in Inside FERCs Gas
Market Report.

Name

Editorial

Trading in the daily and monthly markets at Tennessee, Zone 4-313 Pool has
demonstrated a level that will support a robust pricing location.

Summary

2. Tennessee, Zone 4-313 Pool:

Natural Gas

There has been no change to the existing Platts listing for Transco, Zone 6 non-NY, which
is composed of all non-NY delivered transactions both north and south of Station 195.

Listing cycle

Up to 84 consecutive monthly Contract Periods

Last trading day

Four Business Days prior to the first calendar day of the Contract Period

Name

Option on Henry Penultimate Fixed Price Future 25K

Description

A monthly Option on the corresponding Contract Period of the Henry Penultimate


Fixed Price Future

Symbol

HHP

Minimum price
fluctuation

The price quotation convention shall be One hundredth of a cent ($0.0001) per
MMBtu; minimum price fluctuation may vary by trade type. Please see Table
in Resolution 1 to this Chapter 18

Listing cycle

Up to 84 consecutive monthly Contract Periods

Last trading day

At 2:30pm EPT on the fourth Business Day prior to the first calendar day
of the Contract Period

Market
Analysis

The price quotation convention shall be One hundredth of a cent ($0.0001) per
MMBtu; minimum price fluctuation may vary by trade type. Please see Table in
Resolution 1 to this Chapter 18

Data
Vendors

Minimum price
fluctuation

Weather and
Emissions

HHP

Finance

Symbol

Softs and
Metals

A monthly cash settled Exchange Futures Contract based upon the monthly price
published by NYMEX for the location specified in Reference Price A

Coal

Description

Nat Gas

Henry Penultimate Fixed Price Future 25K

Petroleum

Name

Power

Three Business Days prior to the first calendar day of the Contract Period

Guest
Feature

See the original announcement.

32

In Depth

August 2015

Editorial

Last trading day

Summary

Up to 156 consecutive monthly Contract Periods

Natural Gas

Listing cycle

Summary

Coal

Editorial
Power

Platts Launches New US Illinois Basin Coal Assessment

Softs and
Metals

See the original announcement.

Coal

Platts weekly coal assessments for the US physical market are published in the Weekly Price
Survey, Traditional Physical Market table in Coal Trader on the final business day of the week.

Nat Gas

The specifications for the coal are an average heat content of 11,800 Btu/lb with typical
sulfur content of 5 lbs SO2/MMBtu FOB barge. The price is reported in $/st. The weekly
assessment reflects the price of such coal in the US physical market for three forward quarters
and one forward calendar year. The respective codes are CIGQ001; CIGQ002; CIGQ003;
and CIGY001.

Petroleum

Coal

Effective August 7, 2015, Platts launched a weekly price assessment for


Illinois Basin 11,800 Btu/lb, 5 lbs SO2/MMBtu FOB barge coal.

ZEMA collects more than 20 different coal records from Platts alone. For a complimentary demo on how ZEMAs data
coverage can be specialized for your companys needs, visit www.ze.com/book-a-demo.

Finance

The ZEMA graph below shows weekly coal prices for different US locations in comparison
to total US coal production. Data: EIA Weekly Coal Prices and EIA Coal Production Weekly
reports. Leverage ZEMAs sophisticated analytical functionalities to make more informed
decisions about coal. To learn more, book a complimentary ZEMA demonstration.

Weather and
Emissions

Graph created with ZEMA

Data
Vendors
Market
Analysis
Guest
Feature

33

In Depth

August 2015

Summary

Coal

Editorial
Power
Petroleum
Nat Gas

DCE Launches New Coal-Based Contracts


Coal

Starting August 17, 2015, the Dalian Commodity Exchange (DCE) has
listed the following contracts for trading:

Metallurgical Coke 1608

RMB 837.5 / ton

Coking Coal 1608

RMB 629 / ton

Finance

Posted benchmark price

Softs and
Metals

Contract

See the original announcement.

Weather and
Emissions

Platts to Discontinue Two US Coal Assessments


Effective September 26, 2015, Platts will discontinue two weekly
Illinois Basin thermal coal assessments currently listed in the Weekly Price Survey,
Traditional Physical Market table, which typically publishes on Fridays.

Data
Vendors

Due to evolving market conditions, Platts believes there is no longer sufficient interest or an
appreciable market to accurately assess the following products:

Market
Analysis

Illinois Basin 10,500 Btu/lb, 6+ lbs SO2/MMBtu, FOB Rail coal; affected codes are
CIDQ001, CIDQ002, CIDQ003 and CIDY001.
Illinois Basin 11,500 Btu/lb, 2.5 lbs SO2/MMBtu, FOB Rail coal; affected codes are
CAJQ001, CAJQ002, CAJQ003 and CAJY001.
See the original announcement.

Guest
Feature

34

In Depth

August 2015

Summary
Editorial
Power

Softs and Metals

Petroleum
Nat Gas

SOFTS

Coal

Platts to Launch New Thai Hi-Pol Sugar Forward


Physical Assessment Curve

35

In Depth

August 2015

Guest
Feature

The assessments will roll forward in line with expiry of the ICE Sugar No. 11 Futures monthly
contract. For example, February 29, 2016 expiry day for the March Sugar No. 11 Futures
contract would be the final assessment day for the March-May 2016 shipment window. On
March 1, 2016, the curve would roll forward with May-Jul 2016 the new front window,
Jul-Sep 2016 the second window, and Oct-Dec 2016 added as the third window.

Market
Analysis

Cargo assessments will reflect parcels of 12,000 mt, though FOB cargoes of between
8,000 mt and 12,000 mt will be considered. Loading locations FOB Bangkok, Laem
Chabang, Koh Si Chang and Sri Racha will be considered.

Data
Vendors

The forward physical curve would adopt the same underlying terms and conditions reflected in
the existing spot assessments. It would reflect a minimum polarization on a wet basis of
98.5 degrees at the time of shipment.

Weather and
Emissions

Platts currently publishes bids, offers and trades heard in the market for these shipment
cycles. The proposed forward physical curve would create formal assessments for these
windows. Platts would continue to publish heards gathered from the market and the new
assessments would add to Platts existing spot Thai Hi-Pol assessments.

Finance

The new assessments would reflect existing trading patterns where Thai Hi-Pol sugar is traded
forward over four 75-day shipment windows. As the calendar year runs, these are March 1 to
May 15, May 1 to July 15, July 1 to September 15, and October 1 to December 15.

Softs and
Metals

Effective October 5, 2015, Platts intends to launch new forward physical


assessments for Thai Hi-Polarization sugar. The daily assessed curve would include the first
three 75-day shipment windows.

Softs and
Metals

See the original announcement.

Coal

For Chicago, prices would reflect 22.6 mt (25 short tons) truck delivered to the Channahon,
Illinois, rail head for next week delivery. For New Orleans, prices would reflect CIF deliveries of
1,360 mt (1,500 short tons) basis New Orleans for next month loading.

Nat Gas

Effective October 1, 2015, Platts intends to launch two new daily price assessments for dried
distillers grains with solubles (DDGS) in the US Midwest and Gulf Coast. The new assessments
would reflect export quality DDGS with a minimum protein content of 25%, a minimum color
of 50 (according to the Hunter L test), a minimum of 6% fat, and a moisture level in the range
of 10% to 12%, standardized to 11.5%.

Petroleum

Platts to Introduce Daily US Dried Distillers


Grains with Solubles Assessments

Power

ZEMA collects several sugar-based reports from Platts and IHS. To learn more about ZEMAs data coverage, visit www.
ze.com/the-zema-solutions/data-coverage.

Editorial

See the original announcement.

Summary

The assessments would be published in the Kingsman Daily Sugar Market Report, on
Platts Agriculture Alert and in Platts Market Data. Symbols will be announced at a later date.

Softs and Metals

The assessments would be published as a premium to the relevant ICE Sugar No. 11 Futures
contract and as an outright price at 1630 London time. The outright price would not include
an additional polarization premium.

Finance

Platts to Launch CIF European Feed Wheat


and Corn Assessments

Weather and
Emissions

On October 1, 2015, Platts intends to launch a new daily spot physical assessment for
European feed wheat and corn, on a CIF Netherlands basis. The daily assessments would
reflect the daily traded or tradable value of cargoes of CIF corn and CIF feed wheat, basis the
Netherlands at 16:30 London time.

Data
Vendors

It is proposed that quality specifications would be normalized to standard requirements for


corn and to meet prevailing requirements for feed grade wheat. Per Platts methodology, the
assessment would be made using transactional information collected and published daily,
including transactions, bids, and offers.
See the original announcement.

Market
Analysis

ZEMA regularly collects more than 100 data reports on softs. To learn more about ZEMAs extensive data coverage, visit
www.ze.com/the-zema-solutions/data-coverage.

Guest
Feature

36

In Depth

August 2015

Editorial
Power
Petroleum

See the original announcement.

Summary

Effective August 17, 2015, Platts launched an assessment of the


soybean oil/heating oil spread (known as BOHO) that will reflect the value of the front-month
contract for Chicago Board of Trade (CBOT) soybean oil futures multiplied by 7.37,
the industry standard for the yield for soy methyl ester biodiesel minus the value of the
front-month New York Mercantile Exchange (NYMEX) ultra-low sulfur diesel futures at market
close. This assessment is expressed in US cents per gallon and published in the Platts
database and the Biofuelscan.

Softs and Metals

Platts Launches US BOHO Assessment

DCE Lists New Softs Contracts

Soybean Meal 1608

RMB 2,653 / ton

Soybean Oil 1608

RMB 5,648 / ton

RBD Palm Olein 1608

RMB 4,764 / ton

Blockboard 1608

RMB 92.00 / piece

Fiberboard 1608

RMB 54.45 / piece

Softs and
Metals

Posted benchmark price

Coal

Contract

Nat Gas

Starting August 17, 2015, the Dalian Commodity Exchange (DCE) listed the
following contracts for trading:

Finance

See the original announcement.

Effective December 21, 2015, Platts will discontinue its FOB Singapore ethanol assessments
including the daily assessment (AAWAD00), and weekly and monthly averages (AAWAD04;
AAWAD03).

Data
Vendors

The discontinuation of these assessments is proposed due to changes in typical spot market
trade flows, as participants rarely break bulk ethanol cargoes in Singapore anymore.

Weather and
Emissions

Platts to Discontinue Ethanol FOB


Singapore Assessments

See the original announcement.

Market
Analysis
Guest
Feature

37

In Depth

August 2015

Summary
Editorial
Power

Softs and Metals

Petroleum

Argus Changes Description for New Orleans


Urea Assessment

Nat Gas

As of August 13, 2015, Argus made changes to the price series in the
Argus FMB North American Fertilizer publication and data module. These changes apply to
data in the DFNA module in the DFNA folder onftp.argusmedia.com
The description for the following code has changed:
Old description

New description

PA0010781

Urea granular bulk fob New Orleans


upriver/prompt

Urea granular bulk fob New Orleans prompt

Coal

Code

Softs and
Metals

See the original announcement.

Metals

Finance

Platts to Launch China Blast Furnace Iron Ore Pellet Premium

Weather and
Emissions

On October 7, 2015, Platts intends to publish a weekly spot CFR China blast
furnace (BF) iron ore pellet premium assessment. This assessment would be published on
Wednesdays, or the nearest prior working day, in case of a public holiday in Singapore.

Platts is proposing to publish this value in the daily iron ore assessment table in SBB Steel
Markets Daily on page 3 and on page MW1105 of PMA and to database the value, making it
available in data products under the category SI.

Market
Analysis

The proposed launch is in response to market request for greater informational transparency
of pellet pricing and premiums in the seaborne spot market and a notable increase in spot
liquidity for iron ore pellet imports into China, resulting from tighter environmental regulations.

Data
Vendors

The assessment would be published on a $/dry metric ton basis and is intended
to reflect the premium over the basis fines value plus VIU adjustment, expressed in the most
commonly traded blast furnace pellet grades and brands imported into China.

Guest
Feature

See the original announcement.


ZEMA collects more than 90 metals records from Platts alone. To gain a wider perspective on the metals market and find
out how the ZEMA solution can enhance your companys business processes, visit www.ze.com/the-zema-solutions.
38

In Depth

August 2015

August 10, 2015

February 2016

October 2015

April 2016

December 2015

June 2016

March 2016

August 2016

May 2016

November 2016

Nat Gas

Contract Expiry Month

Petroleum

Contract Launch Month

Power

Contracts for further expiries will be launched as per the contract launch calendar below.
Currently, Silver Hedge 30 KG futures contracts expiring in the months of August 2015 and
November 2015 are available for trading.

Editorial

Effective August 10, 2015, the National Commodity & Derivatives Exchange Ltd.
(NCDEX) has launched the Silver Hedge 30 KG (Symbol: SILVERHEDG), expiring
in February 2016.

Summary

Softs and Metals

NCDEX Launches Silver Hedge 30 KG Futures

Coal

See the original announcement.

Softs and
Metals

LME Clear Launches New Renminbi Initiative


On July 28, 2015, LME Clear, the clearing house for the London Metal Exchange
(LME) market, announced it can now accept offshore renminbi (CNH) as eligible cash
collateral. This follows regulatory approval for the initiative from the Bank of England.

Data
Vendors

ZEMA collects more than 200 metals records. To receive a complimentary ZEMA demonstration,
visit www.ze.com/book-a-demo.

Weather and
Emissions

See the original announcement.

Finance

The renminbi is seeing rapid adoption internationally. According to Swift data, the Chinese
currency is already one of the top-five global payment currencies. The initiative comes in
response to calls from LME Clear members to extend the list of accepted cash collateral to
include CNH. Chinese-owned BOCI Global Commodities will be the first LME Clear Member to
submit CNH collateral.

CME Delists Approved Copper Warehouse

39

In Depth

August 2015

Guest
Feature

See the original announcement.

Market
Analysis

Effective August 7, 2015, Southwest Commodity Warehouses, Inc., an


existing warehouse for the storage of copper, has notified the Chicago
Mercantile Exchange (CME) that its facility is withdrawing its status as an Approved
Warehouse and is no longer available for the storage of copper deliverable against CMEs
copper futures contract. This facility has the product code 5902 and is located on N. Highway
Drive in Tucson, AZ.

Summary
Editorial
Power

Softs and Metals

The ZEMA graph below shows a forecast of copper spot prices up to January 2019. Data: LME
Official Prices report and NYMEX Comex Futures report. To learn more about data available
through ZEMA, book a complimentary ZEMA demo.

Petroleum
Nat Gas

Graph created with ZEMA

Coal
Softs and
Metals

Argus Changes Timing Descriptions for


Black Sea Steel Publication

Description

Old timing New timing

PA0015184 Ferrous scrap A3 cfr Marmara within 30 days

prompt

spot

prompt

spot

PA0015186 Ferrous scrap HMS 1-2 80/20 cfr Turkey 4 -6 weeks

prompt

spot

PA0016036 Steel HRC fob Black Sea 2 - 6 weeks

prompt

spot

PA0016037 Steel CRC fob Black Sea 2 - 6 weeks

prompt

spot

PA0015185

40

In Depth

August 2015

Ferrous scrap A3 fob Russia/Ukraine Black Sea


within 30 days

Guest
Feature

spot

Market
Analysis

prompt

Data
Vendors

PA0015183 Ferrous scrap HMS 1-2 75/25 fob Rotterdam 4-6 weeks

Weather and
Emissions

PA-code

Finance

Effective July 22, 2015, Argus removed a possible ambiguity in the timing description
for the following price series in the Argus Black Sea Steel publication and data module.
The following PA code details now appear in the DBlackSeaSteel module in the
DATA/DBlackSeaSteel folder on ftp.argusmedia.com.

Old timing New timing

prompt

spot

PA0016042 Steel wire rod fob Black Sea 2 - 6 weeks

prompt

spot

PA0016043 Steel HRC cpt Moscow 2 - 5 weeks

prompt

spot

PA0016044 Steel HRC cpt Moscow 2 - 5 weeks RUB/t

prompt

spot

PA0016045 Steel rebar cpt Moscow 2 - 5 weeks

prompt

spot

PA0016046 Steel rebar cpt Moscow 2 - 5 weeks RUB/t

prompt

spot

PA0016047 Iron Ore pig iron fob Russia Black Sea 2 - 6 weeks

prompt

spot

PA0016048 Iron Ore pig iron fob Ukraine Black Sea 2 - 6 weeks

prompt

spot

PA0016049 Ferrous scrap A3 cpt European Russian mills within 30 days

prompt

spot

Ferrous scrap A3 cpt European Russian mills


within 30 days RUB/t

prompt

spot

PA0016051 Ferrous scrap A3 cpt European Urals mills within 30 days

prompt

spot

Ferrous scrap A3 cpt European Urals mills


within 30 days RUB/t

prompt

spot

PA0016233 Steel CRC cpt Moscow 2 - 5 weeks

prompt

spot

PA0016234 Steel CRC cpt Moscow RUB/t 2 - 5 weeks

prompt

spot

PA0016907 Steel rebar fob Turkey 2 - 6 weeks

prompt

spot

PA0016908 Steel rebar ex-works Turkey 2 - 5 weeks

prompt

spot

PA0016050

PA0016052

Market
Analysis

PA0016041 Steel rebar fob Black Sea 2 - 6 weeks

Data
Vendors

spot

Weather and
Emissions

prompt

Finance

PA0016040 Steel slab fob Black Sea 2 - 8 weeks

Softs and
Metals

spot

Coal

prompt

Nat Gas

PA0016039 Steel billet fob Black Sea 2 - 6 weeks

Petroleum

spot

Power

prompt

Editorial

PA0016038 Steel plate fob Black Sea 2 - 6 weeks

Summary

Description

Softs and Metals

PA-code

See the original announcement.

Guest
Feature

41

In Depth

August 2015

Summary
Editorial

Finance

Power
Petroleum
Nat Gas

CME Lists Additional Expiration Months in Serial


Options and Serial Mid-Curve Options on Eurodollar Futures

Coal

Effective August 30, 2015, the Chicago Mercantile Exchange Inc. (CME) listed
additional expiration months in Serial options and Serial Mid-Curve options on CME
Three-Month Eurodollar (ED) futures (CME Rulebook Chapter 452A), within the currently
established listing cycle.

Weekly

16

1-Year Mid-Curve (MC)

2-Year MC

3-Year MC

4-Year MC

5-Year MC

Data
Vendors

Standard

Weather and
Emissions

Current Serial Serial as of 30 August 2015

Market
Analysis
Guest
Feature

A Serial option on ED futures is specified so as to expire in a given month that is not in the
March Quarterly cycle, (i.e., January, February, April, May, July, August, October, or
November), for exercise into ED futures for delivery in the next following month in the March
Quarterly cycle (i.e., March, June, September, or December).
Similarly, a Serial Mid-Curve option on ED futures is specified to expire in a given month not
in the March Quarterly cycle, for exercise into ED futures for delivery in the month occurring a
42

In Depth

August 2015

Finance

March Quarterly

Softs and
Metals

CME enabled trading in such Serial options and all such Serial Mid-Curve options for expiry in
each of the nearest four months not in the March Quarterly cycle, as described in the
table below.

Petroleum

CBOE to List Weeklys Options on VIX


Beginning October 8, 2015, the Chicago Board Options Exchange (CBOE)
plans to list options with weekly expirations on the CBOE Volatility Index (VIX Index).

Coal

The VIX Index is based on real-time prices of options on the S&P 500 Index (SPX) and is
designed to reflect investors consensus expectations for 30-day stock market volatility.
Standard VIX futures and options expire monthly. Weekly VIX options expirations will offer
convergence to the VIX cash index four to five times per month, instead of once a month.

Nat Gas

The listing of VIX Weeklys options adds another tool to an array of long- and short-term
trading strategies that can be executed on the VIX Index, the worlds premier benchmark of
equity market volatility. The launch of VIX Weeklys options follows that of VIX Weeklys futures,
which were introduced at the CBOE Futures Exchange (CFE) on July 23.

Finance

See the original announcement.

Softs and
Metals

CBOE may list up to six consecutive weekly expirations for VIX options and futures. New weekly
expirations for VIX futures and options are listed on Thursdays (excluding holidays) and expire
on Wednesdays. Like VIX Weeklys futures, the VIX Weeklys options will be available during
regular and extended trading hours.

Weather and
Emissions

CBOE Launches Hedge Fund Benchmarks with Eurekahedge

Below are descriptions of the CBOE Eurekahedge Volatility Indexes. Note: the number of funds
within the indexes can vary throughout the month as funds disseminate returns.

In Depth

43

Guest
Feature

The CBOE Eurekahedge Volatility Indexes, which will be updated monthly, comprise a broad
array of US- and international-based funds in the volatility space.

Market
Analysis

The four new indexes, the first of their kind, were created to meet the demands of institutional
hedge fund investors seeking benchmarks that measure the performance of distinct
volatility-based strategies. CBOE Eurekahedge Volatility Indexes group specific funds into one
of the four indexes that best correspond with a particular strategy.

Data
Vendors

On August 18, 2015, CBOE announced it has launched four new benchmark
indexes in collaboration with Eurekahedge, a Singapore-based hedge fund research
and data collection company, that measure the performance of hedge funds that employ
volatility-based investment strategies.

August 2015

Power

ZEMAs sophisticated market data management tools collect hundreds of financial data reports, including reports from
CME. To learn how you can begin building your own library of financial data, book a complimentary ZEMA demonstration
at www.ze.com/book-a-demo.

Editorial

See the original announcement.

Summary

Finance

prescribed number of years after the next following month in the March quarterly cycle.
Serial Mid-Curve options comprise One-Year Mid-Curve Options, Two-Year Mid-Curve
Options, Three-Year Mid-Curve Options, Four-Year Mid-Curve Options, and Five-Year
Mid-Curve Options.

Editorial
Power
Nat Gas
Coal

CBOE Eurekahedge Tail Risk Index (Bloomberg Ticker: EHFI453) The tail risk index is an
equally weighted index of eight constituent funds designed to provide a broad measure of
the performance of underlying hedge fund managers who specifically seek to achieve
capital appreciation during periods of extreme market stress.

Petroleum

CBOE Eurekahedge Relative Value Volatility Index (Bloomberg Ticker: EHFI452) The
relative value volatility index is an equally weighted index of 39 constituent funds designed
to provide a broad measure of the performance of underlying hedge fund managers that
trade relative value or opportunistic volatility strategies. Managers utilizing the strategy can
pursue long, short, or neutral views on volatility with a goal of positive absolute return.

ZEMA collects many records from the Chicago Mercantile Exchange regarding Chicago Board of Trade financial
information, including the CBOT Futures daily price record. To learn more about how to transform this collected data into
useful market intelligence, visit www.ze.com/the-zema-suite/market-analyzer.

Softs and
Metals

See the original announcement.

Finance

See the original announcement.

In Depth

44

Guest
Feature

The values for each of the indexes are published every 15 seconds throughout the trading day
and can be accessed on the CBOE website and through all quote vendors.

Market
Analysis

The new benchmark indexes will use popular S&P 500 Index (SPX) Weeklys options to create
new versions of two of CBOEs flagship strategy benchmark indexes the CBOE S&P 500
BuyWrite Index (BXM) and the CBOE S&P 500 PutWrite (PUT) Index as well as completely
new risk-managed option selling strategies featuring S&P 500 Index (SPX) and CBOE Volatility
Index (VIX Index) options.

Data
Vendors

Effective July 29, 2015, CBOE announced that it has created 10 new options-based strategy
performance benchmark indexes that are designed to highlight the long-term utility of options
as risk management and yield enhancing investment tools. CBOE began disseminating
intra-day values for the new benchmarks beginning August 3, 2015.

Weather and
Emissions

CBOE Introduces 10 Options-Based Strategy


Performance Benchmark Indexes

August 2015

Summary

CBOE Eurekahedge Long Volatility Index (Bloomberg Ticker: EHFI451) The long volatility
index is an equally weighted index of 10 constituent funds designed to provide a broad
measure of the performance of underlying hedge fund managers who take a net long view
on implied volatility with a goal of positive absolute return.

Finance

CBOE Eurekahedge Short Volatility Index (Bloomberg Ticker: EHFI450) The short volatility
index is an equally weighted index of 15 constituent funds designed to provide a broad
measure of the performance of underlying hedge fund managers who take a net short view
on implied volatility with a goal of positive absolute return. The strategy often involves the
selling of options to take advantage of the discrepancies in current implied volatility versus
expectations of subsequent implied or realized volatility.

Editorial
Power
Petroleum

UDS enable market participants to customize and create the precise calendar spreads with
tail percentages they wish to trade in real time. UDS for futures will be supported alongside
exchange-defined futures spreads utilizing the following CME Globex codes:

Summary

Effective August 17, 2015, the Board of Trade of the City of Chicago, Inc. (CBOT) will enable
a new User-Defined Spreads (UDS) type for CBOT Treasury Futures Calendar Spreads with
Tails on the CME Globex electronic trading platform, which will be available for the September
2015 to December 2015 rollover.

Finance

CBOT Launches User-Defined Spreads for


CBOT Treasury Bond and Note Futures Calendar Spreads

Nat Gas

ZT Short-Term US Treasury Note Futures (2-Year)


Z3N 3-Year US Treasury Note Futures
ZF Medium-Term US Treasury Note Futures (5-Year)
ZN Long-Term US Treasury Note Futures (6 to 10-Year)
ZB U.S. Treasury Bond Futures
UB Long-Term US Treasury Bond Futures

Coal

See the original announcement.


ZEMA excels at displaying time-series data in charts, graphs, forward curves, and more. ZEMA also collects financial
derivatives data from a wide range of sources. For more information, visit www.ze.com/the-zema-suite.

Softs and
Metals

Deka Equity Index ETF Launched on


Xetra Tracks Sustainable Euro-Zone Companies

Asset class

equity index ETF

ISIN

DE000ETFL474

Total expense ratio

0.40%

Distribution policy

distributing

Benchmark

Solactive Eurozone Sustainability Index

Data
Vendors

Deka Oekom Euro Nachhaltigkeit UCITS ETF

Weather and
Emissions

ETF name

Finance

Since August 18, 2015, a new equity index ETF issued by Deka Investment GmbH has been
tradable on Xetra and Brse Frankfurt.

45

In Depth

August 2015

Guest
Feature

See the original announcement.

Market
Analysis

The Deka Oekom Euro Nachhaltigkeit UCITS ETF enables investors to participate in the
performance of companies from the Solactive Eurozone Sustainability Index. The index
comprises 30 blue chip companies from the euro zone with Prime Status awarded by oekom
research AG. These are companies with high corporate rankings for social and environmental
sustainability within their sectors.

Summary
Editorial

Finance

Power
Petroleum

Ossiam Smart Beta ETF Launched on Xetra


to Track Undervalued US Sectors

Asset class:

equity index ETF

ISIN:

LU1079841273

Total expense ratio:

0.65%

Distribution policy:

accumulating

Benchmark:

Shiller Barclays CAPE US Sector Value Net TR Index

Softs and
Metals

Ossiam Shiller Barclays CAPE US Sector Value TR UCITS ETF 1C (EUR)

Coal

ETF name:

Weather and
Emissions

See the original announcement.

Finance

The new Ossiam ETF enables investors to participate in the performance of the four most
undervalued US sectors. The sectors are selected monthly based on the relative CAPE ratio
and 12-month momentum. CAPE stands for cyclically adjusted price-earnings and calculates
the ratio of the share price to the average of the past ten years of earnings, adjusted
for inflation.

Data
Vendors

ZEMA presently collects information from Deutsche Brse about derivatives products. To learn more about how ZEMA
can leverage Deutsche Brse market data, visit www.ze.com/the-zema-suite.

Market
Analysis

Thomson Reuters Releases StarMine Combined Alpha Model

Guest
Feature

Effective July 21, 2015, Thomson Reuters announced the release of the
StarMine Combined Alpha Model (CAM), a model that combines all the available
StarMine equity alpha models into one comprehensive alpha-generating signal. The weights
assigned to each model vary by region. Thus, StarMine CAM recognizes the fact that some
regions, such as the US and Japan, are more value focused while in Developed Europe and
Asia ex-Japan momentum plays a larger role. The model intelligently handles missing data
and makes use of all available StarMine alpha models for a given security.
46

In Depth

August 2015

Nat Gas

Effective July 28, 2015, Xetra/Brse Frankfurt: A new equity index fund issued by Ossiam has
been tradable in Deutsche Brses XTF segment on Xetra and Brse Frankfurt since Tuesday.

Power

On July 21, 2015, Thomson Reuters announced the launch of intraday evaluated pricing
capabilities, derived by Thomson Reuters Pricing Service (TRPS). All Government and
Corporate bonds will be updated throughout the day, Monday through Friday, by the global
team of over 150 TRPS evaluators.

Nat Gas
Coal

See the original announcement.

Petroleum

Increased regulatory requirements are escalating the demand for greater insight into the value
of investment and trading portfolios. These valuations typically have been calculated by using
end-of-day pricing from the day prior; however, the ability to use intraday pricing makes net
asset value (NAV) and profit and loss (P&L) computations more accurate throughout the day
with up-to-the-minute pricing. Supporting market data, such as corresponding benchmark
rates and spreads, will be available alongside intraday prices.

Softs and
Metals

ZEMA, ZEs best-in-class data management solution, collects more than 75 records from Thomson Reuters on a
daily basis. ZEMA can collect, display, and analyze data for market participants in any sector. For further information,
visit www.ze.com/the-zema-solutions.

Eurex Launches GMEX IRS Constant Maturity Futures

Finance

On August 12, 2015, Eurex and GMX announced that the first trades in GMEXs
Euro-denominated IRS Constant Maturity Future (IRS CMF) have been successfully
executed, cleared and settled. This product has been available for the electronic
arranging of transactions on GMEXs platform with trade confirmation and clearing on Eurex
since August 7.

Guest
Feature
In Depth

47

Market
Analysis

See the original announcement.

Data
Vendors

The IRS CMF contract provides a lower margin alternative to plain vanilla OTC IRS for
hedging given the increased capital requirements relating to EU Commissions mandatory
central clearing and front loading rules for IRS. The new regulation will likely come into force in
April 2016 with buy-side firms having six months to comply.

Weather and
Emissions

At launch, a number of trading and clearing members have been able to trade and clear
including Bank of America Merrill Lynch, Socit Gnrale, and R.J. OBrien. GMEX and Eurex
are continuing to admit and connect further market participants to trade the IRS CMF
contracts, including large sell-side banks, buy-side firms, futures trading houses, and
derivatives brokers. Additionally, key software and market data vendors have been offering
their services from the start including Trading Technologies, Fidessa, and Bloomberg.

August 2015

Editorial

Thomson Reuters Introduces Intraday


Evaluated Pricing Capabilities

Summary

See the original announcement.

Finance

StarMine CAM is currently available through Thomson Reuters Eikon and will be available as a
datafeed through DataScope Select in the near future.

Power
Petroleum

The evaluated bond prices are computed by an independent data vendor, Interactive Data
Corporation, based on its proprietary methodology. This complements the information from
issuers of listed debt securities available on SGXs website. The end-of-day evaluations are
published on a one-day delayed basis.
See the original announcement.

Nat Gas

ZEMAs coal market data management solution easily integrates relevant information with a wide range of CTRM and
ETRM systems. To learn more, book a complimentary ZEMA demonstration at www.ze.com/book-a-demo.

As of July 31, 2015, Bourse de Montral Inc. (the Bourse) and Canadian Derivatives Clearing
Corporation (CDCC) listed for trading the following options and futures contracts:

Softs and
Metals

S&P/TSX Composite Index Banks (Industry Group) Futures SXK


S&P/TSX Composite Index Banks (Industry Group) Options SXJ
S&P/TSX Capped Utilities Index Futures SXU
S&P/TSX Capped Utilities Index Options SXV

Finance

Below are the margin intervals for these options and futures contracts:

SXK

3.56%

20,000

SXJ

3.56%

40,000

SXU

5.88%

20,000

SXV

5.88%

40,000

Data
Vendors

Position Limit
Weather and
Emissions

Margin Interval

Coal

TMX Lists Composite Index Banks and Capped


Utilities Index Futures and Options

Symbol

Editorial

As of August 3, 2015, Singapore Exchange (SGX) introduced evaluated


bond prices on its website to provide public access to independent evaluations
of SGX-listed debt securities. Bonds are generally traded over the counter (OTC) so there is a
lack of public price information. The evaluated bond prices will provide a reference point for
both bond issuers and investors, and help in their assessment of debt securities.

Summary

Finance

SGX Introduces Evaluated Bond Prices

Market
Analysis

The following tables are an indication of the months and symbols that will be available
for trading on the futures and months and strike prices that will be available for trading on
the options.

Guest
Feature

48

In Depth

August 2015

S&P/TSX Capped Utilities Index Futures

SXU

Petroleum

SXK

September
December
March
June
September
December
March
June

Power

S&P/TSX Composite Index Banks (Industry Group) Futures

Months

New Option Classes

$2,480.00
$2,490.00
$2,500.00
$2,510.00
$2,520.00

SXV

August
September
October
December
March

$205.00
$210.00
$215.00
$220.00
$225.00

Finance

SXJ

August
September
October
December
March

Softs and
Metals

S&P/TSX Capped Utilities Index Options

Strike Prices

Coal

S&P/TSX Composite Index Banks (Industry Group) Options

Symbol Months

Nat Gas

Company name

Editorial

Symbol

Summary

Company name

Finance

New Futures

Weather and
Emissions

See the original announcement.

Data
Vendors
Market
Analysis
Guest
Feature

49

In Depth

August 2015

Summary
Editorial
Power
Petroleum

Weather and Emissions

Nat Gas
Coal

Obama Administration Announces New EPA


Clean Power Plan to Cut Carbon Pollution 32% by 2030

In Depth

50

Guest
Feature

August 2015

Market
Analysis

ZEMA regularly collects data from the Environmental Protection Agency, including reports on security prices, treasury bill
auction results, and emissions. To learn more about how ZEMAs powerful data collection engine can be configured to
your specific business needs, book a free demo at www.ze.com/book-a-demo.

Data
Vendors

See the original announcement.

Weather and
Emissions

The final rule establishes guidelines for states to follow in developing and implementing their
plans, including requirements that vulnerable communities have a seat at the table with other
stakeholders. EPA is proposing a model rule states can adopt, as well as a federal plan that
the EPA will put in place if a state fails to submit an adequate plan. Both the proposed
model rule and federal plan focus on emissions trading mechanisms to make sure utilities
have broad flexibility to reach their carbon pollution reduction goals.

Finance

The Clean Power Plan accelerates the transition to a clean energy future. By 2030, the plan
will cut carbon pollution from the power sector by nearly a third and additional reductions will
come from pollutants that can create dangerous soot and smog. By 2030, emissions of sulfur
dioxide from power plants will be 90% lower, and emissions of nitrogen oxides will be
72% lower, compared to 2005 levels.

Softs and
Metals

On August 8, 2015, President Obama announced the US Environmental Protection Agencys


final Clean Power Plan, which proposes to cut US carbon pollution from the power sector by
870 million tons, or 32% below 2005 levels, in 2030. Power plants are the largest
drivers of climate change in the United States, accounting for roughly one-third of all carbon
pollution emissions, but there were no national limits on carbon pollution prior to this
plans implementation.

Summary
Editorial
Power

Graph created with ZEMA

Petroleum

Weather and Emissions

The ZEMA graph below shows forecasted US carbon emissions up to December 2016, with a
target set at 400 ppm. Data: EIA Forecast STEO Macroeconomic Energy Indicators. To learn
more about data available through ZEMA, book a complimentary ZEMA demo.

Nat Gas
Coal
Softs and
Metals

United States First Commercial Scale


Offshore Wind Farm Celebrates Construction Milestone

Finance

On August 27, 2015, the US Department of the Interior announced that the Block
Island Wind Farm, the United States first commercial-scale offshore wind farm, has
successfully completed its steel in the water construction milestone.

In Depth

51

Guest
Feature

August 2015

Market
Analysis

The wind farm will produce more than 100 million kilowatt hours of clean energy annually, and
Deepwater Wind will sell the electricity through a Power Purchase Agreement to
National Grid, a Rhode Island utility. Project developers estimate the wind farm will reduce
electric costs by 40% for the average ratepayer on Block Island, which currently relies on

Data
Vendors

The facility is expected to provide electricity directly from the wind farm to Block Island.
Because the island uses only 1 megawatt of power in the off-season and 4 megawatts in the
summer peak season, the remaining 90% of the energy produced during the off season will be
sent to other state customers via a 25-mile bi-directional submerged transmission cable
between Block Island and the Rhode Island mainland.

Weather and
Emissions

As part of the Obama Administrations Climate Action Plan, Deepwater Wind is constructing a
five-turbine, 30-megawatt wind farm in Rhode Island State waters about three nautical miles
southeast of Block Island. At 589 feet above sea level, the turbines will be among the tallest
in the world. The project, scheduled to be online in 2016, is expected to power about
17,000 homes.

Continuous
Description
forward

Nat Gas

PA-code

Petroleum

The following new codes will appear from July 27 in the /DAEE folder on the ftp.argusmedia.
com server. These daily assessments possess time stamps of 6, price types of 8, and are in
GBP/MWh.

Power

Effective July 27, 2015, Argus introduced emissions adjusted-spark and dark spreads for UK
market including UK carbon support tax. These values will be in the data file in addition to the
existing emissions adjusted values. The report will show the values including the UK carbon
support tax only.

Editorial

Argus Introduces Emissions-Adjusted Spark


and Dark Spreads for UK Market

Summary

See the original announcement.

Weather and Emissions

expensive diesel-powered generators. With the transmission line, Block Island has no need
for backup diesel generators, as it can purchase electricity from National Grid once the cable
is laid.

Category

Spark UK carbon adjusted base NBP gas


49.13% day-ahead

>Spark spread>Europe>UK

PA0016370 1, 2, 3, 4

Spark UK carbon adjusted base NBP gas


49.13% month

>Spark spread>Europe>UK

PA0016371 1, 2, 3, 4

Spark UK carbon adjusted base NBP gas


49.13% quarter

>Spark spread>Europe>UK

PA0016372 1, 2, 3, 4, 5

Spark UK carbon adjusted base NBP gas


49.13% season

>Spark spread>Europe>UK

PA0016447 0

Spark UK carbon adjusted base ARA coal


38% day-ahead

>Spark spread>Europe>UK

PA0016448 1, 2, 3

Spark UK carbon adjusted base ARA coal


38% month

>Spark spread>Europe>UK

PA0016449 1, 2, 3, 4

Spark UK carbon adjusted base ARA coal


38% quarter

>Spark spread>Europe>UK

PA0016866 1

Spark UK carbon adjusted base ARA coal


38% season

>Spark spread>Europe>UK

Coal

PA0016369 0

Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors

See the original announcement.

Market
Analysis

ZEMA aggregates more than 40 data reports regarding emissions from around the world. To learn more about ZEMAs
vast data library, visit www.ze.com/the-zema-solutions/data-coverage.

Guest
Feature

52

In Depth

August 2015

Summary
Editorial
Power
Petroleum

Weather and Emissions

Nat Gas
Coal

Platts to Change European CO2 Emissions Assessments

Softs and
Metals

Effective October 1, 2015, Platts proposes to publish European C02 emissions


assessments in European Power Daily and European Power Alert real-time services
that reflect the midpoint values only and to no longer display the high and low range.
Platts would continue to publish a high-low range around its midpoint assessments for
European C02 emissions symbols in Market Data category EU.

Finance

Ranges for all contracts would be standardized as follows: +/- 02 euro cent.
See the original announcement.

Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature

53

In Depth

August 2015

Power
Petroleum
Nat Gas
Coal
Softs and
Metals
Finance

To see the full list of ZEMA data providers, visit


www.ze.com/the-zema-solutions/data-coverage.

Editorial

Since the last issue of DataWatch, ZE has added multiple data reports, including reports
published by BSP, EIA, EOX Live, Elia, METI, National Grid, PJM, REN, RTE France, Reuters,
and Trade Statistics of Japan. The BSP data covers daily base and Euro-peak auction prices
and volumes as well as hourly auction trading prices and volumes. The Elia reports include
data on generated energy, nominated capacity, physical flows, solar power generation, wind
power generation, and more. The National Grid reports include data on natural gas actual
offtake flows and aggregate day ahead gas flow nominations. These reports, along with many
others added to ZEs data library within the last month, have been implemented in response
to a need for greater data coverage in strategic areas of power, natural gas, fuel, metal,
and currency.

Summary

For 20 years, ZE PowerGroup Inc. (ZE) has consistently kept up to date on the latest in energy
and commodity data changes. ZE collects data spanning oil, natural gas, electricity, weather,
agriculture, emissions, and finance. ZE then provides its clients with access to both public
(free subscription) and private data reports, including reports that are collected based on
clients specific needs.

News from Data Vendors

ZEMA Adds Electricity, Fuel, Natural Gas, Metal,


and Currency Data in August

Weather and
Emissions
Market
Analysis

August 27, 2015 MDA Weather Services offers a variety of data and reports used
throughout the energy, agriculture, and weather markets. In addition to providing the basic
weather data products used by traders in these industries worldwide, MDA goes beyond the
numbers to provide unique datasets tailored for traders in each industry. New and improved
product offerings include:

Data
Vendors

MDA Introduces Zip-Code Level Weather


Data and Other Product Offerings

ZIP-Code Level Weather Data

54

In Depth

August 2015

Guest
Feature

Ideal for localized energy interests particularly utilities - with over 40,000 ZIP codes
in the US.

Nat Gas

Archived MDA forecasts are available for those requiring historical forecast and observation
data to tune internal models.

Petroleum

MDAs proprietary super ensemble model incorporates multiple model inputs and uses
them to create a single forecast. The forecast is tuned by taking multiple factors into
account such as recent skill and bias of the input models.

Power

Also ideal for energy interests, MDA possesses hourly weather data for locations across
the world.

Editorial

Hourly Weather Data

Summary

Observed parameters include temperature, precipitation, wind speed, dew point, relative
humidity, cloud coverage, wind chill, and heat index.

News from Data Vendors

MDAs proprietary technology takes weather information from weather stations across the
US and interpolates it to ZIP code level while also improving accuracy by compensating for
elevation adjustments.

Coal
Softs and
Metals

PetroChem Wire Introduces 70+ NGL Prices in NGLs Week Newsletter


Finance

August 27, 2015 PetroChem Wire has introduced more than 70 Natural Gas Liquid (NGL)
prices as part of its new NGLs Week newsletter.

Weather and
Emissions

As production sources become more diverse and transportation dynamics more complex,
regional prices have become increasingly dynamic, making traditional price relationships
more volatile. As such, PetroChem Wire now daily assesses prices for E/P mix, propane and
natural gasoline for Conway, KS, as well as ethane and propane for Targa, also at the Mont
Belvieu hub.

55

In Depth

August 2015

Guest
Feature

Daily cash cost values are provided for ethane-ethylene, propane-ethylene,


N-butane-ethylene and natural gasoline-ethylene.

Market
Analysis

Raw NGL values and fractionation spreads are included for production basins including
National, Eagle Ford, Permian, DJ Basin and Marcellus, providing a more holistic valuation of
the NGL barrel in any given region.

Data
Vendors

A unique grid also shows combinations of implied prices. These include implied ethane prices
from oil, natural gas, ethylene, LLDPE and HDPE, among others.

Power

For more information about PetroChem Wires NGL price series or about the NGLs Week
newsletter, see http://petrochemwire.com/Sample_Issues/NGLs%20Week.html , or contact
Samantha Hartke at Samantha@petrochemwire.com, or 832 330-3340.

Editorial

Natgas-Brent ratio
Natgas-propane ratio
Natgas-PGP ratio
Natgas-PP ratio

Summary

Natgas-WTI ratio
Natgas-ethane ratio
Natgas-ethylene ratio
Natgas-HDPE ratio

Petroleum

News from Data Vendors

In addition the NGL series includes a series of ratios including:

Nat Gas
Weather and
Emissions
Data
Vendors

Increasing LPG trade in the Middle East open market has led to the emergence of a new
trading segment, independent of prices set by producers for term contracts. This emerging
market has also boosted transparency in price discovery, allowing global energy and
commodity news and price reporting agency Argus to launch the Argus Middle East Index
(AMEI) this month. AMEI is a daily price for propane and butane sold from Middle East ports
based on market activity.

Market
Analysis

We are delighted to see liquidity developing in this market and hope that the transparency
that Argus brings to the pricing of these spot volumes will serve as a springboard for further
market development, Argus Media chairman and publisher Adrian Binks said.

Contact Information, Houston


Gabriela Alcocer, 1-713-968-0000, gabriela.alcocer@argusmedia.com

In Depth

56

Guest
Feature

Argus produces the Argus Far East Index (AFEI), the leading spot daily benchmark price for
delivered LPG cargoes to the northeast Asian market.

August 2015

Finance

More than 1.2mn t of propane and butane has been exported in spot cargoes so far this year
from Middle East ports, compared with about 1mn t for the whole of 2014. LPG buyers in
Asia-Pacific are increasing spot imports from the Middle East while reducing their term
commitments, after the shale revolution allowed US suppliers to increase their market share
in countries such as Japan and South Korea during the past two years.

Softs and
Metals

Singapore, August 6, 2015 LPG volumes traded outside of term agreements in the Mideast
Gulf are on track to double this year compared with 2014, as increasing production from
Qatar and North America gives consumers across Asia-Pacific the option to secure more spot
cargoes available at short notice.

Coal

Mideast Gulf LPG Spot Trade Flourishes Led by Qatari Supplies

Summary
Editorial

Graph created with ZEMA

Power
Petroleum

Monthly Market Analysis

Monthly Market Analysis

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX)

Nat Gas

The ZEMA graph above shows the price volatility of crude this year as demonstrated by the
prompt-month NYMEX Brent-WTI spread. WTI is represented in red, Brent is represented in
blue, and the Brent-WTI spread is represented by the purple area. Units are in USD/bbl.

Coal

Crude Oil Brent vs. WTI: Forward Curve (NYMEX)

Softs and
Metals

Graph created with ZEMA

Finance
Weather and
Emissions
Data
Vendors

The ZEMA graph above shows this months Brent and WTI forward curves in comparison to last
months forward curves, based on NYMEX average settle prices. Units are in USD/bbl.

Market
Analysis
Guest
Feature

57

In Depth

August 2015

Power
Petroleum
Nat Gas

The ZEMA graph above shows the North American natural gas spot prices on NYMEX for Henry
Hub, Transco Zone 6, PG&E Citygate, and Chicago Citygates between August 3-27, 2015.
Units are in USD/MMBtu.

Editorial

Graph created with ZEMA

Summary

Monthly Market Analysis

North American Natural Gas Spot Prices (NYMEX)

Coal

Henry Hub Natural Gas Forward Curve (NYMEX)

Softs and
Metals
Finance
Weather and
Emissions

Graph created with ZEMA

Data
Vendors

The ZEMA graph above shows the spread between this months Henry Hub natural gas forward
curve and last months forward curve, based off of average settle prices on NYMEX. Units are
in USD/MMBtu.

Market
Analysis
Guest
Feature

58

In Depth

August 2015

1. Monthly Temperature (AccuWeather)

Editorial
Power
Petroleum

Graph created with ZEMA

Summary

Monthly Market Analysis

Actual Weather (AccuWeather)

Nat Gas

The ZEMA graph above shows average monthly temperatures according to AccuWeather for
San Diego (red line), Chicago (green line), San Antonio (purple line), and New York City (blue
line). The temperatures are in degrees Celsius.

Coal

2. Daily Temperature (AccuWeather)

Softs and
Metals
Finance

Graph created with ZEMA

Weather and
Emissions
Data
Vendors
Market
Analysis

The ZEMA graph above shows daily temperatures according to AccuWeather for San Diego
(red line), Chicago (green line), San Antonio (purple line), and New York City (blue line)
between August 1-26, 2015. The temperatures are in degrees Celsius.

Guest
Feature

59

In Depth

August 2015

Petroleum
Nat Gas
Coal
Softs and
Metals

Gold and Silver Daily Prices (CME)

Power

The ZEMA graph above shows day-ahead peak electricity prices between August 3-25, 2015,
as reported by ICE. The red line represents CAISO SP15, the green line represents PJM APS
Zone, the purple line represents ERCOT North 345KV, and the blue line represents
NYSO Zone A. Units are in USD/MMh.

Editorial

Graph created with ZEMA

Summary

Monthly Market Analysis

Electricity: Day-Ahead Prices (ICE)

Graph created with ZEMA


Finance
Weather and
Emissions
Data
Vendors
In Depth

60

Guest
Feature

August 2015

Market
Analysis

The ZEMA graph above shows gold and silver daily prices on CME between July 7 August 25, 2015. The yellow line represents COMEX 100 Gold (USC/toz), the blue line
represents COMEX 5000 Silver (USC), the red line represents the gold 7-day moving average,
and the green line represents the silver 7-day moving average.

Summary
Editorial

Guest Feature

Power
Petroleum

Olefin Prices Volatile


Ride May Threaten US
Petrochem Renaissance

Nat Gas

By Kathy Hall and Samantha Hartke, PetroChem Wire


Coal
Softs and
Metals
Finance
Weather and
Emissions

The US olefins market has seen its share of volatility over the last two months with ethylene
seeing multi-year lows and polymer-grade propylene reversing its traditional premium over
ethylene for a spell, according to benchmark PetroChem Wire prices.

Data
Vendors

This has ultimately led to a narrowing of cash cost margins the cost of producing ethylene
from individual natural gas liquids and uncertainty regarding monthly contract pricing,
among others. These could ultimately have more far-reaching consequences. Major
companies mulling new cracker builds, even those looking at expanding existing facilities,
could rethink their plans.

Market
Analysis

Ethylene

61

In Depth

August 2015

Guest
Feature

The first chink in ethylenes armor came in mid-August when spot ethylene prices hit a six-year
low, first breaking below the 30-cents/pound (cpp) mark and then sinking beneath 25 cpp,
PCW prices show, after spending most of the year trading within a 2 cpp band but then
shedding more than 11 cpp, or nearly 34%, in August alone.

$0.30

Power

$0.25

Editorial

$/lb

$0.35

Summary

Guest Feature

$0.40

$0.20
FEB-15

MAR-15

APR-15

MAY-15

JUN-15

JUL-15

AUG-15

Petroleum

JAN-15

Figure 1 Spot Ethylene 2015

1.00
0.80

0.60
0.50

0.30

0.40

0.20

Weather and
Emissions

0.60

0.40

$/gal (Ethane)

0.70

Finance

$/lb (Ethylene and HDPE)

0.80

Data
Vendors

0.20

0.10

0.00

Ethylene-MtB Wms

HDPE BM Houston

Market
Analysis

06-AUG-15
15-JUN-15
22-APR-15
27-FEB-15
05-JAN-15
10-NOV-14
18-SEP-14
28-JUL-14
04-JUN-14
10-APR-14
18-FEB-14
23-DEC-13
30-OCT-13
09-SEP-13
17-JUL-13
24-MAY-13
03-APR-13
07-FEB-13
13-DEC-12
22-OCT-12
29-AUG-12
09-JUL-12
15-MAY-12
22-MAR-12
30-JAN-12
05-DEC-11
12-OCT-11
19-AUG-11
28-JUN-11
05-MAY-11
14-MAR-11
19-JAN-11
24-NOV-10

0.00

Ethane

Guest
Feature

Figure 2
A confluence of factors has kept the bearish pressure on ethylene. Outages and reductions
at downstream plants have muted typical olefins demand, and fewer consumers have been
62

In Depth

August 2015

Softs and
Metals

1.20

0.90

Coal

In contrast, in recent days NYMEX crude has been hovering in the low $40s/bbl area, natural
gas between $2.60-$2.70/mmBtu, ethane in the low 20s cpg, and HDPE BM in the Houston
market around 46-48 cpp.

Nat Gas

Spot ethylene prices broke below 30 cpp on August 6 and by August 12 reached 25 cpp. On
August 14, ethylene settled at 22 cpp, a level last seen in July 2009, when NYMEX WTI crude
was in the $70s/bbl, natural gas around $3.60/mmBtu, Mont Belvieu ethane about
45-46 cents/gallon, and spot high density polyethylene blow molding (HDPE BM) in the
Houston market around 50-51 cpp.

Editorial
Power

In addition to larger production issues at several downstream plants, such as Westlake


Chemical in Longview and Formosa at Point Comfort, both in Texas, the more widespread
stories are anecdotal indications of reductions at various sites as railcars have been slow to
return to producers from their customers. With resin supply building at the producer level,
throttling back various units for short periods has helped prevent a supply glut.

Summary

Guest Feature

seeking spot market material. It is interesting to note that no single incident has itself
dramatically affected consumer demand for ethylene.

Plants at 100%, Impact of Ad-valorem Inventory Taxes


Petroleum

With ethylene plant rates still near 100%, supply has been building as consumption has
tapered off. In addition to the growing supply, companies that operate on a fiscal year are
approaching their own year-end inventory assessment.

Nat Gas

80

100%
95%

50

90%

40
85%

20

Softs and
Metals

30

USG op rates (%)

60

Coal

Monthly avg prices (cpg)

70

80%

JUL-15

JAN-15
APR-15

JUL-14
OCT-14

APR-14

OCT-13
JAN-14

JUL-13

JAN-13
APR-13

APR-12
JUL-12
OCT-12

OCT-11
JAN-12

JUL-11

APR-11

JUL-10
OCT-10
JAN-11

APR-10

USG max cracker op rate

75%

Finance

JAN-10

OCT-09

10

Ethylene monthly avg price

Weather and
Emissions

Figure 3

Data
Vendors

Seen more commonly in December, although some companies see their fiscal years end in
October, the desire to limit ad valorem taxes on year-end inventory value becomes a
short-term fundamental, and a certain amount of destocking is typically seen for
many commodities.

63

In Depth

August 2015

Guest
Feature

Ethylene has seen lows below the 25 cpp level before, and many eyes are watching to see
how low it will go this time. In past periods of decline, ethylene has bounced back from lows of
15 cpp (December 2008) and 20 cpp (January 2003). Its lowest level since the Williams hub
opened was 13.5 cpp in February 2002.

Market
Analysis

Additionally, ethylene has long had a significant premium to its feedstocks, which in
August has become its potential downside as its cost-based floor is 10 cpp or less. With
ethane at 20 cpg and ethylene at 22 cpp, ethylene still holds a premium of around 13 cpp to
ethane (see Figure 4).

2-JUL-15

2-JUL-14

2-JUL-13

2-JUL-12

2-JUL-11

2-JUL-10

2-JUL-09

2-JUL-08

Petroleum

2-JUL-07

Power
Nat Gas

$/lb

Ethylene Mt. B-Wms

PGP Mt. B-EPC

Figure 4

Coal

But as soon as ethylene hit that six-year low of 22 cpp, the reaction was another chorus of
what market watchers and participants had been saying all month as ethylene began
its freefall: Is this the floor?

Softs and
Metals

Whether the 22 cpp mark is indeed the floor remains to be seen, but a trade on August 17
at 22.375 cpp and another on August 18 at 22.75 cpp indicated that a rebound might
be occurring.

Finance

Spot ethylene has certainly seen lower prices than 22 cpp, but the speed at which prices fell
from 30 cpp to 20 cpp one week was somewhat unusual. With the exception of two days
in January, spot ethylene during 2015 has traded in a band of 35-39 cpp until July 1. The
slide in July was gradual over the entire month, prices dropped 1.5 cpp to end it at
33.5 cpp. In contrast, spot prices have dropped 11.5 cpp in August.

In Depth

64

Guest
Feature

Ethylene contract prices were 35.25 cpp in January and spent most of 2Q at 34.25 cpp. They
fell to 33.75 cpp in June and to 32.75 cpp in July.

Market
Analysis

With spot prices currently 10 cpp below that level, sentiment that August contract prices
would drop is widespread. However, the month-to-date spot weighted average for August at
27.75 cpp is more tempered than a full 10 cpp drop. With another nine trading days left in
August (monthly contracts retroactively settle after the month ends), the closing days
of the August spot market will show how sustainable the current rebound is, which will inform
contract negotiations.

Data
Vendors

Widespread Sentiment, August Contract Price Impact

Weather and
Emissions

The most significant effect of the spot price decline is on monthly supply contract prices. The
monthly NTP (net transaction price) for contract ethylene was 32.75 cpp for July, down 1 cpp
from June. The PetrochemWire (PCW) spot weighted average in July was 34.6 cpp.

August 2015

Editorial

0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00

Summary

Guest Feature

1.00
0.90

Power
Petroleum

The swift drop in ethylene exacerbated tepid downstream demand as consumers largely
stepped back from buying and waited for the market to find a floor. And the late-day sell-off
on August 21 has given buyers pause once more.

Nat Gas

Forward Curve

Coal

One thing is certain: current-month ethylene remains the cheapest along the forward curve.
A contango shape has been demonstrated for most months in 2015 with 4Q prices slightly
more than a penny above August, and 1Q 2016 about a penny above 4Q 2015. While
August offers on Thursday were falling below the 24 cpp level, 2Q 2015 was trading at
25 cpp. This trend has largely been true for more than a month, but the premium of forward
markets has been increasingly more pronounced in the past two weeks.

Softs and
Metals

August has been an unusually volatile month for spot ethylene, which traded in a band of
34-37 cpp for nearly all of 2015 until late July.

Finance

0.27
0.265

Weather and
Emissions

0.26
0.25

Data
Vendors

$/lb

0.255
0.245
0.24

Market
Analysis

0.235

AUG-17

JUN-17

APR-17

FEB-17

DEC-16

OCT-16

AUG-16

JUN-16

APR-16

FEB-16

DEC-15

OCT-15

Guest
Feature

AUG-15

0.23
0.225

Editorial

Operating rates at the Gulf regions ethylene plants remained high, although news of two
unexpected outages this week gave rise to bullish speculation. One was an outage at
DuPonts 1.5 billion lb/year Orange facility in Texas, which shut August 17. On August 20,
Dows 2.295 billion lb/yr TX-8 unit at Freeport shut. The Dow unit was back in service by
Thursday morning. Additionally, Flint Hills Resources 1.35 billion lb/yr plant at Port Arthur
remained shut for a planned outage.

Summary

Guest Feature

However, many in the market seem intent on testing the apparent 22-cpp resistance level
again. On August 21, August began trading down again, finishing the day at 23.25 cpp.

Figure 5 Ethylene forward curve


65

In Depth

August 2015

60

0.7

50
40

0.6
0.5

30
20

0.4

10

0.3

0.2
0.1

Ethylene Mt. B-Wms

Margin from propane

Margin from butane

Margin from natural gas

Softs and
Metals

Margin from ethane

Coal

04-MAY-11
20-JUN-11
05-AUG-11
21-SEP-11
04-NOV-11
22-DEC-11
10-FEB-12
28-MAR-12
14-MAY-12
28-JUN-12
14-AUG-12
28-SEP-12
13-NOV-12
02-JAN-13
19-FEB-13
05-APR-13
21-MAY-13
08-JUL-13
21-AUG-13
07-OCT-13
20-NOV-13
08-JAN-14
25-FEB-14
10-APR-14
29-MAY-14
15-JUL-14
29-AUG-14
15-OCT-14
01-DEC-14
16-JAN-15
05-MAR-15
21-APR-15
05-JUN-15
22-JUL-15

-10
-20

$/lb (Ethylene price)

0.8

Nat Gas

cpp (Ethylene cash costs)

70

Petroleum

0.9

Power

80

Figure 6

2012

43.549

41.779

26.165

26.863

2013

48.150

40.695

37.484

22.573

2014

48.424

39.395

47.124

29.472

2015 YTD

26.244

30.843

31.818

15.288

Market
Analysis

Natural gasoline

Data
Vendors

Butane

Guest
Feature

Figure 7

66

In Depth

August 2015

Weather and
Emissions

Propane

Finance

However, year-over ethylene cash costs for all products are collapsing, which could give
pause to companies considering new crackers and possibly even plant expansions. Ethane
and natural gasoline are worth singling out as ethane cash cost margins, pegged Friday at
13.705 cpp, are among the lowest since October 2011. Between 2014 and the year-to-date,
ethane margins have fallen about 46%.
Average margins (cpp) Ethane

Editorial

As spot ethylene prices hit multi-year lows over the past two weeks and NGL prices also took
a tumble week-on-week, it is interesting to note that cash cost margins, while sharply
narrower are nowhere near historical lows. (Cash cost is the cost of producing ethylene from
a given NGL.)

Summary

Guest Feature

Narrower cash cost margins

Summary
Editorial
Power

Natural gasoline, which fell to a nearly seven-year low on August 21, has seen its year-on-year
margin lose about 48% of value so far. However, natural gasoline, unlike ethane, is not the
feedstock of choice in the vast majority of US crackers.

Guest Feature

This is significant in that ethane is now the most widely used feedstock in US ethylene plants,
a move that began a couple of years ago with the onset of the shale revolution that brought
about a rampant increase in NGL production and depressed NGL prices (notably ethane,
which is generally the largest component in the standard NGL barrel).

Propylene

Softs and
Metals
Finance

Feed Slates

Guest
Feature
In Depth

67

Market
Analysis

Currently, propane is the cheapest feedstock to produce ethylene, as per its cash cost, which
came in at 4.709 cpp, according to PCW prices.

Data
Vendors

Cash costs to produce ethylene from ethane have been in the 7-10 cpp range for years, PCW
prices show. Propane, however, has been more volatile with its cash costs ranging between
10 cpp and 50 cpp in just the past two years. However, when propane began hitting some
historical lows in late 2014 and appeared to stabilize at these levels, ethylene producers took
notice. Since then, the appetite for propane as a feedstock has grown.

Weather and
Emissions

Between the beginning of the year and early July, a shift in feed slates to crack as much
propane as possible also increased propylene output during a time when demand had grown
sluggish. Inventories of propylene for non-fuel use stood at 5.22 million barrels for the week
ending June 26, EIA data showed, 28% up from year-ago levels and 31% higher than the
five-year average. Propane petchems demand has risen from about 350,000 b/d in January
to about 450,000 b/d in June, Genscape data shows.

August 2015

Coal

The driver of PGPs premium price has been that its supply, especially as a co-product, has
dwindled in the US as steam crackers shifted to lighter feedstocks that maximize ethylene
output. The abundance of ethylene, however, has often kept it at a discount to PGP and
created favorable economics for running metathesis units that convert ethylene
into propylene.

Nat Gas

This last occurred in September 2014 with ethylene prices briefly overtaking PGP for a week.
At the time, three large olefins plants were shut, keeping 1.7 million pounds of ethylene out of
the Gulf Coast market each day. This week, with all plants running, ethylene was trading at
35 cpp. Dozens of deals were seen this week and about 75 mm lbs of July ethylene was
transacted, while July PGP traded once, at 34.5 cpp, according to PCW prices.

Petroleum

In
Depth

The first overall signs that the spot olefins market was beginning to make a significant
downturn came not from ethylene, but polymer-grade propylene (PGP). PGP prices fell
below ethylene in early July, a situation not seen in nearly a year, as propylene supplies rose
on cheaper propane prices and increased petchems cracking.

Power
Softs and
Metals
Finance
Weather and
Emissions

The recent downward and volatile trend in US olefins markets and resulting impacts in
contract pricing, cash costs, and upstream/downstream markets is to be scrutinized
keenly over the next few weeks and months. As the market searches for a floor and ponders
the August contract price, what are the longer-term implications for billion-dollar
petrochemical projects first hatched a few years ago, when cheap feedstocks promised a
US petrochemical renaissance?

Market
Analysis
Guest
Feature

In any case, what has proved critical during this period of uncertainty is the need for daily
price transparency all along the supply chain from NGLs to olefins to polymers to better
anticipate, or at least prepare for, the next turn in this ever-volatile marketplace. e

Data
Vendors

For downstream markets, such as polymers and PVC, among others, the cheaper olefins bring
the comfort of plumper margins, but anecdotal evidence of logistical constraints could
prevent producers from reaping said benefits, should this downward trend ultimately turn out
to be a short-term phenomenon.

68

In Depth

August 2015

Coal

Summary

Nat Gas

With the January price at 49.5 cpp, PGP contract prices have now lost about 32% of its value
for the year to date. PGP contract prices got as low as 20 cpp in December 2008 and spent
the next six months climbing back to 40 cpp in June 2009. As for this year, PGP contracts
have steadily fallen since hitting 50.5 cpp in February, following the trend in the spot PGP
market. A year ago, the PGP contract price was 72.5 cpp and spot PGP was trading at 70 cpp.

Petroleum

In

US monthly propylene contracts for August began to settle August 18 at a 3.5 cpp decrease
from July, bringing PGP to 33 cpp and chemical grade propylene (CGP) to 31.5 cpp.
Producers had previously nominated a rollover for August contract pricing, but as spot PGP
traded below the 30 cpp level and feedstock RGP trended towards the 20 cpp level,
negotiations centered on a decrease. The July contract price was the first time PGP contracts
went below 40 cpp since 2009.

Editorial

In the longer-term, as new propane dehydrogenation units come on-stream, PGPs premium
is not a guarantee, given the added length this would bring to the PGP market.
Impact on PGP contract pricing

Summary

Guest Feature
Depth

In the meantime, a raft of polypropylene (PP) operating issues has muted demand for
propylene. Downstream ethylene markets, such as polyethylene and polyvinyl chloride (PVC),
have largely been running their plants at high rates, supporting ethylene prices. As PP
operations were expected to stabilize and demand was expected improve, PGP prices at the
time were likewise expected to regain their premium. However, PGP prices regained their
premium on August 6 the day ethylene broke below the 30-cpp mark and began its decided
march southward.

Editorial
Power
Petroleum
Nat Gas

Kathy Hall heads the Texas-based publishing company, managing information flow and all
editors and researchers at PetroChem Wire. She spent more than 10 years as a commodity
markets reporter and editor at Platts, a division of the McGraw-Hill Companies. Kathy is the
companys operating executive and executive editor.

In

PetroChem Wire creates global awareness of the US NGLs, olefins, polymers and aromatics
markets by providing useful and clear information at the close of each business day.
PetroChem Wire was formed in 2007. Its olefins and polyolefins prices serve as benchmarks
for a number of physical and swap contracts that trade on the CME/NYMEX Clearport system.

Summary

Guest Feature
Depth

About PetroChem Wire

Coal
Softs and
Metals

Samantha Hartke is product manager at PetroChem Wire. Her responsibilities include


developing essential price benchmarks, products and analyses for natural gas liquids, olefins
and aromatics. Before joining PCW, she was Director of the Market Daily Service group at IHS
Chemical, where she launched a global suite of daily reports covering petrochemical products
in Europe, Asia and the US. Samantha spent nine years at Platts North American natural gas
group as a managing editor.

Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature

69

In Depth

August 2015

Summary
Editorial
Power
Petroleum

By the ZE Business Analysts Team

In Depth

Weighing the Options:


Build an Internal EDM
System or Get ZEMA

Nat Gas
Coal

The Role of Enterprise Data Management in Energy and


Commodities Industries

Finance
Weather and
Emissions

Firms and utilities searching for an EDM system have two major options available to them:

Softs and
Metals

Many large integrated oil and natural gas firms, commodity firms, and power utilities rely on
an Enterprise Data Management (EDM) system to acquire the data required for their trade and
risk management (ETRM/CTRM), enterprise resource planning (ERP), business intelligence
(BI), visualization, and accounting and settlement systems. These systems require significant
volumes of data. For example, a modern ETRM may require hundreds of discrete data reports
containing time series, including energy brokerage data, information from price reporting
agencies, and internal operational data about proprietary crack spreads, forward price curves,
and more. Power firms must have access to nodal ISO feeds, plant operational data, and
metering data.
1. Build: Firms may build a basic EDM system in-house with their internal IT resources.
Firms may license a commercial EDM solution from ZE PowerGroup.

70

In Depth

August 2015

Guest
Feature

Energy trade and risk management, business intelligence, and financial and
settlement systems must be fed by an EDM system. EDM systems can be built
or purchased from a specialized vendor like ZE.

Market
Analysis

In what follows, best practices from industry experts, thought leaders, and academics will be
discussed alongside anecdotes from two firms facing data management dilemmas.
Ultimately, both firms selected a commercial off-the-shelf (COTS) EDM system, ZEMA, to meet
their data management needs.

Data
Vendors

2. Buy:

Power

1. Data collection tool:


Schedules the collection of information and centralizes data.

Petroleum

2. Data quality control tool:


Measures the completeness, timeliness, and accuracy of data stored.

Nat Gas

3. Data storage tool:


Stores information in an enterprise-level database.
4. Metadata management system:
Describes and normalizes data collected into the system.

Softs and
Metals

6. Industry-specific analytical engine:


Used for easy data retrieval, business intelligence, and business automation.

Coal

5. Security and entitlement administration functionality:


Manages entitlements and security, and in this way helps manage resources and supports
auditing and data compliance.

7. A robust API and workflow engine:


Provides support for enterprise integration and continued application development.

Finance

EDM isnt just about data collection. A modern EDM system also requires a data
quality control system, a storage system, an administration system to provide
entitlement control, an industry-specific analytical engine, and software
support for integration and future development - all of which is included when
you license ZEMA.

Weather and
Emissions

Editorial

A modern EDM solution consists of several major components:

Summary

Data management can be thought of as a shared responsibility between businesses and


technology firms to ensure corporate data assets are properly sourced, deployed, integrated,
and aligned with corporate needs. Firms without an EDM system effectively have reduced their
ownership of an important corporate asset: their data.

In Depth

What Is an Enterprise Data Management System?

Data
Vendors
Market
Analysis
Guest
Feature

71

In Depth

August 2015

Summary
Editorial

Guest Feature
Depth

Power
Petroleum

In

Nat Gas
Coal

Development of Commercial Off-The-Shelf Software

Market
Analysis
Guest
Feature

72

In Depth

P.C. Clements, From Subroutines to Subsystems: Component-Based Software Development, Software Engineering Institute, November 1995,
accessed February 1, 2014, http://resources.sei.cmu.edu/library/asset-view.cfm?assetid=29995.
I. Ruchkin, Building Software In house: Too Much Control and Flexibility, Institute for Software Research, May 9, 2012, accessed February 1, 2014,
http://www.cs.cmu.edu/~iruchkin/docs/ruchkin12-building-software-in house.pdf.

August 2015

Data
Vendors

1

2

Weather and
Emissions

Managers often face the challenge of sorting out preferences towards building versus the
benefits of purchasing a COTS solution. Many industry professionals and academic papers
have come to the following general consensus: Firms should build software to improve core
business and differentiate themselves. Firms should buy when improving or automating
routine business processes.2 An in-depth case study from Rukins Institute for Software
Research offers a cautionary tale about a logistics business that developed an in-house
system which gave them an initial competitive advantage. Six years later, though, as COTS
solutions became widely available and highly improved, this logistics business was unable

Finance

On the other side, other IT stakeholders tend to have a bias towards building an EDM system
because they place a high value on customization, expect departments hosting the system to
benefit from the additional budget and personnel maintaining the system, and desire to utilize
an in-house skill set.

Softs and
Metals

In the mid-90s, a paradigm shift changed the way large software systems were developed,
moving away from in-house development and towards component-based software
development (CBSD)1 and its commercial subset, COTS software. The concept behind this
movement is that there arent many business problems truly unique to one firm. As such, firms
should use well-developed, widespread components to build a solution, whenever possible,
to minimize reinventing the wheel. While using the succinct mantra Buy, dont build, some
caution that the combination of components has to be wisely chosen and properly integrated,
both from a business and technological perspective.

Summary
Editorial
Power

In Depth

to break away from their in-house system. As such, they remained incapable of matching the
scale of resources possessed by commercial systems and eventually lost their competitive
advantage, while their peers bought increasingly mature COTS systems. A massive financial
loss occurred before this organization was forced to recognize this new reality and change
their tactics six years too late.3

Buy to standardize, build to compete.

Coal

Does the Firm Meet the Preconditions Required for In-House EDM Development?

Nat Gas

Consulting firms offer a more nuanced pros and cons message about EDM software for energy
and commodities industries, in line with their commercial interests and client experiences.4
The following is a workflow followed by consulting firms working with clients who are building
an in-house EDM system.

Petroleum

The Case for Building a Modern EDM System In House


Costs and Requirements

In-house EDM developments require that the following preconditions be met in order to
minimize projectrisks:

Softs and
Metals
Finance

EDM domain and technical knowledge/capabilities are available in house:


Although the firm may have a large, competent IT department and may understand their
immediate data requirements, they also need an up-to-date EDM system and
industry-specific domain knowledge. Knowledge gaps cause firms to underestimate the
true requirements of EDM development, introducing scope-creep, increased costs, and
deployment delays. To mitigate these project risks, firms should have managers and
developers with specialized EDM and industry experience.

Weather and
Emissions
Data
Vendors

EDM development complements the core business competitive advantage:


According to a buy to standardize, build to compete philosophy, a firm needs to make a
compelling case describing how an in-house EDM software system enhances their
competitive advantage enough to justify the costs and risks associated with developing it.

Market
Analysis
Guest
Feature

August 2015

73

In Depth

3 Ibid.
4 To Build or Not to Build: Building Your Own Data Management System Versus Buying,
Dataforensics, 2012, accessed February 1, 2014, http://www.dataforensics.net/pdfs/Build%20vs%20Buy.pdf.

Power
Petroleum
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors
Market
Analysis
Guest
Feature
In Depth

74

Coal

Time-to-market constraints:
Decisions to acquire a data management solution are generally time-bound by business
requirements. A firm requiring an EDM system usually requires it soon (meaning within a
year). ZEs experience, based upon client interviews, suggests that it takes at least two to
three years to create a basic data collection and scheduling application, along with a
critical entitlement and data quality software. The exact time-to-market depends on
variables such as the features required, the number of experienced developers and
managers, and the budget. Developing the remaining EDM modules, including the
analytical engine, requires additional time. A firm with unrealistic deadlines will force the
project manager to balance costs, required features, and time-to-market, resulting in a
sub-optimal system.

Nat Gas

Direct cost:
Direct cost savings are often mistakenly cited by firms as the top reason to develop EDM
software in house. To fully account for initial development costs, firms should budget for
project management and direct administration costs, infrastructure, domain knowledge
learning and methodology development, software design and programming, server and
licensing costs, testing, documentation, integration with internal systems, and finally,
roll-out and user training. Costs do not end with the roll-out; recurring costs are described
in the next section. A ZE survey looking at internal development costs and client
experiences suggests that a basic EDM software system costs $4,000,000 USD and takes
three years to develop, not including ongoing operational costs or future product
enhancements. Future enhancements may include a data collection and scheduling
engine, the extension of required data feeds, and the development of data quality control
and entitlement administration applications, all of which are necessary EDM components.
In ZEs experience, most medium to large energy firms consume anywhere from
100-300 data feeds, and the three year estimated time-to-market development period
assumes that an in-house group of experienced data acquisition developers is present.
Costs may be reduced by outsourcing, but this poses an increased threat to the
management of code quality and the protection of intellectual property.

August 2015

Editorial

Opportunity cost:
There is often a misperception that developing an EDM system is a sunk cost, since
in-house developers, managers, and infrastructure are already paid for. There are no free
lunches the benefits of using a firms resources to develop an EDM system should be
measured against the potentially large opportunity cost of not using those resources.

Summary

Once a firm determines that an EDM system is within its core competency and business
scope, it must next quantify the opportunity cost, direct cost, and the time-to-market
constraints. Many of ZEs clients formerly attempted to build an EDM software in house.
Drawing from both its clients experiences and its own experience producing ZEMA, ZE has
developed a breakdown of the costs involved in producing an EDM system. This breakdown is
detailed in Table 1.

In Depth

What Is the Initial Development Cost a Firm Is Willing to Undertake to Develop


an EDM System?

Opportunity Cost and Time-To-Market Constraint Costs

$ 3,000,000

2.5

Data Collection and Scheduling Application


and Initial Processors

$ 500,000

0.25

Data Quality Control Application

$ 500,000

0.25

Basic Entitlement Administration Application

Not Included

Analytics and Automation Engine

Not Included

Integration API

$ 4,000,000

Total Initial Direct Costs

Nat Gas

Not Included

Petroleum

Power

Initial Direct Costs

Editorial

Est. Time-To Market


(Years)

Summary

Est. Cost

In Depth

Table 1: Initial Direct Costs

Coal

What Is the Ongoing Cost of Maintaining an EDM System?

Market
Analysis
Guest
Feature
In Depth

75

Data
Vendors

August 2015

Weather and
Emissions

Ongoing data maintenance:


Over time, data being collected by a firm may change formats or delivery mechanisms
it may even stop being published. ZE estimates that external market data feeds change
about once a year on average meaning a firm with 300 data feeds needs to possess the
ability to reprogram, test, and deploy up to one data feed per day, a task which requires
approximately two full-time programmers. Firms should also expend resources to
anticipate and detect upcoming data report changes, deploy updates, and minimize
service disruption.

Finance

Ongoing software maintenance and licensing costs:


EDM software maintenance is required when the underlying software it relies upon is
updated. For example, an upstream operating system update (Windows/Office updates)
or framework update (.NET or Java updates) may trigger a corresponding EDM update. A
downstream software change, such as an ETRM change or even a replacement, may also
force an EDM update. A firm typically spends at least $100,000 USD/year maintaining
software licenses for items such as server operating systems, developer softwares,
and databases.

Softs and
Metals

Recurring operational costs are a significant budgetary component of the overall cost of an
in-house EDM system. Table 2 shows an itemized cost breakdown.

Power
Petroleum
Nat Gas

Support and training:


EDM user adaptation requires ongoing technical support and training resources this is
especially important in a global firm where users may be in several time zones. Firms who
serve geographically diverse users require 24/7 support and enhanced troubleshooting
capabilities in order to meet businessdemands.

Editorial

New data development:


Since a business requires new data sources, the EDM team must analyze and understand
new data, develop the data feed, then test and deploy it into the existing EDM framework
all in a timely manner. On average, an experienced developer will complete a new data
feed in one week, if the EDM framework is good and the data source isnt overly complex.
The associated costs listed in Table 2 assume that the same pool of programmers are
implementing updates to existing data feeds and creating new data feeds.

Summary

In Depth

Ongoing data quality monitoring:


Incoming data needs to be monitored on a daily basis to ensure that its quality does not
negatively impact downstream analysis or usage. Serious industry lapses from those who
skipped data monitoring include daily P&L price swings due to missing data points and
hedging financial instruments erroneously based on a poor spreadsheet calculation. With
the right software, data quality monitoring can be done with one full-time analyst.

Coal

Table 2: Annual Recurring Operational Costs


Ongoing Software Maintenance and Licensing Costs

$ 150,000

Data Maintenance (300 processsors)

$ 50,000

Data Quality Monitoring (300 processsors)

$ 50,000

New Data Sources (+5 processors/year)

$ 250,000

Application Support and Training

$ 600,000

Total Annual Recurring Costs

Weather and
Emissions

$ 100,000

Finance

Annual Recurring Operational Costs

Softs and
Metals

Est. Cost

In Depth

76

Guest
Feature

August 2015

Market
Analysis

Technology, methodology, and hardware continuously improve over time. User input,
technology, market events, growth in data availability, external regulation, and deployment
scale changes justify a major rebuild cycle once every three to five years. The resources
required for a rebuild make this unlikely for any single entity. ZE estimates that a one-time
expenditure of $800,000 is required to fund a core team of three to four developers who
produce a future iteration of an EDM system in two to five years. This does not account for
developing an analytical and automation engine. Nonetheless, the operational experience
and user feedback gained from running a basic EDM system for a few years gives a firm insight
into improving data collection, quality control, entitlement management, and other critical
components of in-house EDMdevelopment.

Data
Vendors

What Is the Cost of Future EDM Development?

Est. R&D Cost of Future EDM

$ 800,000

Future EDM Improvement


(3-4 developers and support costs)

Editorial

Est. Time-To Market


(Years)

Summary

Est. Cost

In Depth

Table 3: Research and Development (R&D) Cost of Future EDM Improvement

Power

What Is the Five-Year Total Cost of Ownership (TCO) for an In-House EDM System?

Petroleum

The five-year TCO for the development of an in-house EDM system can be broken down into
several large cost components. The initial effort to build a basic data collection and
scheduling engine, plus the required data feeds, typically takes three years of careful
development and $4,000,000 USD. This does not include developing an industry-specific
analytical engine, a robust workflow/automation engine, or an API required for advanced
enterprise integration, all of which are critical components of a modern EDM system. The
opportunity cost and time-to-market constraints are not included because these factors are
firm-specific.

Nat Gas
Data
Vendors
Market
Analysis

ZE is an experienced software firm that combines energy industry expertise with advanced
software development capabilities. ZE started building EDM solutions in 2001 in response
to the demands of deregulated North American energy markets. ZEMA is an end-to-end EDM
solution designed for collecting data, performing complex analysis, automating business
processes, and integrating with any downstream system. ZEMA is now used across the globe
by multi-commodity, multi-national clients in the energy and commodities industries. ZEMAs
development as a modern EDM platform is the culmination of the development, R&D, and
ongoing efforts of over 200 dedicated staff.

Weather and
Emissions

ZE PowerGroup Has a Decade of EDM Software Development Experience

Finance

The Case for Buying a Commercial EDM Software ZEMA

Softs and
Metals

The total five-year cost of ownership for an in-house EDM system is about $5,400,000 USD. If
the firm forgoes R&D and minimizes application support and training, it can save perhaps an
additional $1,800,000 USD over two years, but at the expense of long-term application
viability and user uptake.

Coal

The subsequent two years of operational costs, including data maintenance, application
support and training, and software licensing will add up to about $1,200,000 USD. R&D for
a future EDM iteration is conservatively estimated at about $800,000 USD, spread out over
two years. Again, this doesnt account for developing an analytical engine, but it does begin to
address some of the other components of a modern EDM system.

Guest
Feature

77

In Depth

August 2015

Summary
Editorial

ZE has a history of delivering its EDM solution on time and within its clients budgetary
constraints. ZEs teams employ a holistic approach to discovering unique client data and
integration requirements, then subsequently configure ZEMAs EDM modules to meet these
needs. ZEs successes have translated into industry recognition: the company has been voted
as the top data management house of the year by Energy Risk magazine five years in a row.

In Depth

Market Recognition for ZEMAs Performance and Reliability

Power

ZEMA Reduces Project Risk and Costs

Petroleum

Opportunity cost:
ZEMAs well-crafted data management software solution reduces the opportunity costs
associated with building an in-house EDM platform.

Nat Gas

Direct cost:
Deploying ZEMA not only provides cost saving opportunities, but also a near-immediate
return on investment and enhanced revenue opportunities. These cost savings include
reduced integration, data consolidation, data storage, and data cleansing costs. From a
business perspective, implementing ZEMA improves data security and regulatory
compliance and reduces IT operational expenses without impacting service or incurring
risk. Finally, ZEMA reduces the costs of long-term planning and implementation expenses
associated with future EDM requirements.

Coal
Softs and
Metals
Finance
Weather and
Emissions
Data
Vendors

Licensing ZEMA reduces the time-to-market risks inherent in building an EDM solution:
Simply put, an individual firm would be hard-pressed to develop advanced EDM software
of a similar quality, in a shorter time frame, on a smaller budget, and with less domain
knowledge at their disposal. Compared with the costs and requirements detailed in the
section Case for Building a Modern EDM System, implementing ZEMA is a rapid and
reliable solution to data management dilemmas, as ZEMA is completely developed and
ZE has many years of experiencing implementing the software for clients of all sizes. ZEs
teams work with clients to identify the data they require, install new data feeds, develop
adaptors to connect with integration points, and install the EDM system itself. A typical
ZEMA build consists of 300 incoming data feeds and connects with two to three major
systems, including billing and ETRMs. Implementation times range between one to six
months from start to finish, depending on the complexity and scope of the project.
Conservatively speaking, this means a ZEMA implementation can be completed in less
than a fifth of the time it takes for in-house development of an EDM solution. This translates
to huge time and cost savings, as well as a reduction of project delivery risks.

Market
Analysis
Guest
Feature

78

In Depth

August 2015

Coal
Softs and
Metals

2. Data storage is powered by Oracle or Microsoft SQL server databases.


3. Metadata management embedded within the ZEMA database normalizes
all incoming data.

Finance

4. Metadata can be managed either through the Administration Console application


or directly through the database itself.

Weather and
Emissions

5. Security and entitlement management, resource management, auditing, and data


compliance are controlled by the Administration Console application.
Industry-Specific Analytical Engine and a Robust API and Workflow Engine

Market
Analysis

ZEMA also features Curve Manager, an automation engine designed to persist


Market Analyzer analytics on a scheduled or event-driven basis to downstream systems via
integration modules called adaptors. ZEMA integrates seamlessly with major downstream
enterprise systems, including internal trade and risk management, business intelligence,
financial, and settlement systems. ZEMA does this in three ways:

Data
Vendors

ZEMA Market Analyzer is an energy commodity-specific engine used for data fusion, analytics,
business intelligence, and forward curve development. Market Analyzer is the culmination of
years of research conducted on behalf of some of the worlds largest energy firms.

In Depth

79

Guest
Feature

ZEMA Curve Manager can automatically feed downstream systems via a library of
developed productized adaptors. ZE has developed adaptors for all major ETRM systems,

August 2015

Nat Gas

1. Data quality control requirements are covered by ZEMAs Data Validation


monitoring system.

Petroleum

New data development:


Organizations often must rapidly procure and develop new data feeds to react to market
adjustments. ZE adds hundreds of new feeds per year to support new client requirements.
ZEMA data feeds can be quickly built and deployed to capture data in any format and in
any granularity. A new ZEMA data feed averages about a week in development time.

Power

Data feed maintenance:


ZE effectively detects upcoming data feed changes through its broad network of data
vendors and clients. ZE reprograms and deploys fixes, often before the data changes occur,
to ensure minimal data disruption.

Editorial

Clients data collection requirements are covered by ZEMAs Data Manager application, a
scheduling engine supported by a library of more than 4,000 data points from all major
commodity exchanges, pricing agencies such as Platts and Argus, and other international and
regional sources.

Summary

ZEMA was developed according to industry best practices; as such, it fulfills all modern
EDM requirements.

In Depth

ZEMA Delivers Full-Featured EDM Functionality

Editorial
Power

ZEMAs web service API allows firms to easily design their own integration points.Full
Support and Future EDM Development Services

Summary

ZEMA Data Direct and Curve Portal allow two-way Excel integration, meaning users can log
on to ZEMA securely via Excel, connect with a live feed of normalized data or analytics, do
business processing via Excel, then upload their results securely back into ZEMA, with full
audit records.

In Depth

SAP settlement systems, and many specialized BI packages, including Spotfire, Matlab,
and Tableau. ZE also routinely develops new adaptors for new systems, when necessary.

Coal

Application support:
ZE provides 24/7 services to troubleshoot application issues.

Nat Gas

ZEMA software upgrades:


ZE is constantly improving ZEMA and deploying the latest releases to licensed clients,
allowing firms to benefit from cutting-edge advances in technology. ZEs newest iteration,
ZEMA 4, is the result of four years of research and development based on client feedback.
ZE will continue to develop features, bug fixes, and updates to its core ZEMA technology to
stay ahead in the EDM solution market.

Petroleum

ZE offers an unmatched arsenal of services that allow firms to selectively control aspects of
their EDM solution, either in house or in a ZE-hosted environment.

Finance

Application training:
ZE provides both on-site and online training services through its branch offices in North
America, Asia, and Europe. The companys global presence means clients benefit from
on-site training, regardless of their location.

Softs and
Metals

Data integrity support:


ZE pinpoints and repairs any data problems a client experiences, develops tools to improve
the quality of data assessed in ZEMA, and advises clients of ways to prevent unexpected
data losses. ZE can also directly monitor data quality, upon a clients request.

Weather and
Emissions
Data
Vendors

Consulting on demand:
ZE analysts have years of experience helping some of the largest global energy firms fulfill
their analytical requirements.
ZEMA Improves the Total Cost of Ownership

Market
Analysis

Case studies of two major ZEMA clients will further reinforce what has been stated above: that
licensing ZEMA cuts time-to-market by one-fifth (conservatively) compared to building an
in-house EDM platform.

Guest
Feature

80

In Depth

August 2015

This firm has been in operation for over 100 years and is one of the largest utilities in the
United States; it has a recent market cap value of over $50 billion in USD.

Initial Decision to Build an EDM System In House:

Finance
Weather and
Emissions

Electricity market data from ISOs such as CAISO, including high volume five-minute
nodal data.
Commodity exchange data from exchanges such as ICE and NYMEX.

Data
Vendors

Weather data from organizations like NOAA and internal weather station feeds.
Internal operational data, including internal market forecasts, counterparty
forecasts, generation units, and gas pipeline transport data.

Market
Analysis

ZEMA is a full-featured EDM software, as defined by the industry. Licensing


ZEMA reduces project time by one-fifth when compared to in house
EDM development.

Guest
Feature

81

In Depth

August 2015

Softs and
Metals

250 individual data feeds, including:

Coal

Data Required:

Nat Gas

The firm had a capable IT department and initially decided to build an EDM solution in house,
setting aside a budget of $1,000,000 USD and establishing a take-to-market deadline of
one year. One year and $2,000,000 USD later, the firm had not yet developed a full data
collection and scheduling application. It had only completed one-third of the required data
scrapers. The scheduling engine was not online yet, and the final price tag had been revised
upwards to a total of $3,000,000 USD plus an additional year of development. Facing high
project delivery risks, uncertain time-to-market, and a loss of confidence in the in-house
approach, the firm reversed course and licensed ZEMA. It is important to note that the EDM
system the organization had developed in house lacked a data validation system and an
advanced analytics and automation engine all critical components of modern
EDM software.

Petroleum

The firm required an EDM system to collect electricity market data from three transmission
jurisdictions, commodity exchange data, and internal operational and forecast data. The firm
needed a system that also transformed and integrated aspects of collected data with several
downstream systems, including an ETRM system.

Power

Purpose:

Editorial

Background:

Summary

In Depth

Case Study 1: A Power Firm That Initially Decided to Build


an EDM System

Implementation:

Coal

Case Study 2: Global Integrated Oil/Gas Firm Licenses ZEMA


Background:

Softs and
Metals

This global multi-commodity firm is one of the top ten Global 500 firms; it is publicly traded
and has a recent market cap value exceeding $200 billion in USD.
Growing Pains:

3. The firm had no clarity regarding data usuage; therefore, it could not easily determine which
subscription feeds were unnecessary.

In Depth

82

Guest
Feature

Technical pain point classic data mess problem:


This firm had many data feeds which were managed separately within two commercial data
management platforms, plus an in-house spreadsheet-based system requiring manual
data input. This effectively created separate data silos within the organization.

Market
Analysis

2. Some subscription feeds were licensed multiple times due to the requirements of several
separate data management platforms in various business units.

Data
Vendors

1. Energy price reporting agencies charge high subscription fees and demand that firms report
on employees data usage. The firms lack of entitlement data meant that it was charged a
maximum amount based on its global headcount as opposed to its actual data usage.

Weather and
Emissions

Business pain point lack of data entitlement control:


The company decided to acquire an EDM solution as a result of the rapidly increasing cost
of data subscriptions (an estimated $2,000,000 USD/year.) The key reasons for its high
subscription costs were due to the following:

Finance

As the firms data requirements increased, it experienced two points of pain: one technical in
nature and the other business-related.

August 2015

Nat Gas

Ideally, the firm would have saved the majority of its $3,000,000 USD budget if it had
decided to license a modern EDM solution from the beginning. Maintaining an in-house
system is significantly more expensive than purchasing a solution from a commercial vendor,
who has the ability to provide both 24/7 support services, data feed maintenance, and new
data feed development services.

Petroleum

Total Cost Savings:

Power

Licencing ZEMA was significantly more cost effective than the estimated in-house build; the
solution was installed and configured within a month. By the third month, all required data
feeds were developed, tested, and installed, and by the fourth month, the system was live and
fully integrated with the organizations downstream systems.

Editorial

ZEMA Enterprise Solution: Data Manager, Data Validation, Administration Console, Market
Analyzer, and Curve Manager.

Summary

In Depth

ZEMA Configuration Selected:

Summary
Editorial

In Depth

Downstream systems consuming this data included three major ETRMs, an ERP, several
BI systems, and user-query tools specific to each silo. The web of integration processes
required to connect these data silos with downstream systems was highly complex and
difficult to maintain, as each silo had different underlying architectures. The total annual
maintenance cost for these systems was estimated at $1.5 million USD/year and growing.
Purpose:

Nat Gas

800 individual data feeds, including:

Petroleum

Data Required:

Power

ZEMA was licensed to fulfill the organizations requirement for a scalable, flexible EDM system
to centralize data collection processes, including internal firm-specific data; monitor the
quality of data; control data entitlements; provide advanced analytical capabilities; automate
tens of thousands of forward curves and analytics; and seamlessly connect with ETRM, ERM,
and specialized BI tools.

International energy price reporting agencies and brokerages, such as Argus, Bentek,
Dow Jones, OPIS, Platts, Bloomberg, Reuters, and WSJ.

Coal

North American electricity markets such as AESO, ERCOT, IESO, ISONE, MISO, CAISO
MRTU, NBSO, NYISO, and PJM.
Government agencies and weather organizations like EIA, NOAA, and WSI.

Softs and
Metals

International commodity exchanges, including CME, ICE, and NYMEX.


ZEMA Configuration Selected:

Finance

ZE-Hosted Enterprise deployment model: Data Manager, Data Validation, Administration


Console, Market Analyzer, Data Direct Excel, Web Services, and Curve Manager. ZE
developers also shipped custom integration adaptors to allow seamless communication
between ZEMA as an EDM solution and the organizations major downstream systems.

Weather and
Emissions

Implementation:

Data
Vendors

The firm set strict resource policies and security guidelines to control the ZEMA systems
integration process. A comprehensive consulting period was used to confirm system
requirements, conduct data mapping, plan for data migration, and decommission legacy
proprietary databases.

Market
Analysis

ZEMA was installed and tested sequentially in user acceptance testing (UAT) and production
environments. Data feeds were developed, configured, reviewed, and deployed; integration
adaptors were developed; and integration outputs were validated against the companys
existing system.

83

In Depth

August 2015

Guest
Feature

This paved way for the transition from a production environment to go live, followed by the
phase out of current systems, user training, and an intensive support period. Finally, the
system was fully turned over to the client. The project took eight months to complete. The

Power

Total Cost Savings:

Petroleum

Total savings from entitlement alone are estimated by the firm at $1,000,000 USD annually
in subscription costs. EDM platform centralization saved an additional $1,500,000 USD
annually in maintenance and system swap-out costs. Industry specific analytics, forward
curve and analytics automation, and ongoing EDM improvements continue to provide
significant benefits over and above the organizations previous solution.

Nat Gas

Conclusion

Finance
Weather and
Emissions
Data
Vendors

The case for buying or licensing an EDM system is appropriate if creating EDM software is
not an organizations core business interest. ZEMA is a mature, market-proven platform that
complies with best industry practices. Conservatively speaking, ZEs implementation statistics
and client anecdotes prove that a ZEMA project implementation requires only one-fifth of the
time required to develop even a basic in-house EDM system.

Softs and
Metals

The case for building an EDM system from scratch hinges on an important business
question is it within a firms core business interests to develop EDM software themselves?
If yes, then can the firm marshal team managers and developers with the right mix of domain
knowledge to follow through on the project? ZE estimates that building a basic in-house EDM
system requires a five-year budget of $5,400,000 USD. Initial development comprises three
years and more than two-thirds of the budget, while ongoing operational and R&D costs
account for the remainder. ZEs experience indicates that most firms start building an EDM
project without realizing the full extent of the time, resources, and expertise required.

Coal

In the energy and commodities industries, powerful enterprise platforms require a modern
EDM system. A firm without a good EDM platform cannot use its corporate data effectively as
an asset, and may lose its competitive advantage in the marketplace. Modern EDM software
covers not only data collection, but also validation, administration, analytics, automation,
and systems integration functions. Systems like this require proper funding for ongoing
support and future development.

Market
Analysis
Guest
Feature

Most firms do not have the right mix of human capital, financial resources, and time to
properly develop an EDM system from scratch. Instead, licensing a full-featured,
commercial EDM solution like ZEMA to integrate with existing enterprise platforms is often a
smarter choice. From a project risk perspective, commercial EDM software like ZEMA has a
well-defined risk profile and timeline. From a cost perspective, an individual firm with little

84

In Depth

August 2015

Editorial

This firms IT department runs many global systems. As such, it chose to operate and maintain
ZEMA on an enterprise-hosted basis. The firm continues to utilize ZEs 24/7 support, including
data feed maintenance services.

Summary

Maintenance:

In Depth

finalized ZEMA solution collected data from 800 individual feeds and supported 850 users
globally. It generated over ten thousand forward curves per day.

Editorial
Power

Clements, P.C. From Subroutines to Subsystems: Component-Based Software Development. Software



Engineering Institute. November 1995. Accessed February 1, 2014. http://resources.sei.cmu.edu/
library/asset-view.cfm?assetid=29995.

Summary

Bibliography

In Depth

experience in EDM software development would be hard-pressed to develop a system of


similar quality, in a shorter time frame, on a smaller budget, and with less domain knowledge
at its disposal. J

Petroleum

Ruchkin, I. Building Software In house: Too Much Control and Flexibility. Institute for Software Research.

May 9, 2012. Accessed February 1, 2014. http://www.cs.cmu.edu/~iruchkin/docs/

ruchkin12-building-software-in house.pdf.
To Build or Not to Build: Building Your Own Data Management System Versus Buying. Dataforensics. 2012.

Accessed February 1, 2014. http://www.dataforensics.net/pdfs/Build%20vs%20Buy.pdf.

Nat Gas
Coal
Softs and
Metals
Finance
Weather and
Emissions

About ZE PowerGroup Inc.:


ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced
software development capabilities. ZE is the developer of ZEMA, a sophisticated enterprise data management and
analysis solution built to meet the challenges of participants in energy and commodities markets.

Data
Vendors

About ZEMA:
ZEMA is an enterprise data management software designed for collecting data and performing complex analysis.
ZEMA replaces fragmented data management processes with a sophisticated, unified, and automated system. Each
ZEMA component is modular and scalable, giving clients greater flexibility when integrating it into their organizations.
The solution is easy to use and backed by ZEs support team around the clock. It has been ranked first in the Energy
Risk Awards Data Management House of the Year category for five years in a row. In Energy Risks annual software
survey and rankings, it is also consistently rated by end users as first in the Preferred System, Ease of System
Integration, and Customer Service categories.

In Depth

85

Guest
Feature

August 2015

Market
Analysis

Disclaimer:
ZE DataWatch is a report comprised of data updates and expectations for energy and commodities markets, powered
by ZEMA. The news contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes
the information in this report to be correct, the organization does not warrant the accuracy or completeness of it.
Information in this report is not intended to provide financial, legal, accounting, or tax advice and should not be relied
upon in that regard. ZE PowerGroup is not responsible in any manner whatsoever for direct, indirect, special, or
consequential damages, howsoever caused, arising out of the use of this report.