datawwatch july 2014

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ZE and Lacima Enter Strategic Partnership

New PORTS Data System Aids Maritime Shipping Processes

Thomson Reuters Acquires UBS Convertible Indices

DME Enhances Trading of Oman Oil Futures

JULY 2014

New products and data sources

Delisting of products and data sources

Potential impact on data

Changes to data attributes, replacement of products

By Vera Tikhomolova

The Future of the Natural Gas MarketPart One: Macro Drivers of Supply

http://www.ze.com

http://www.ze.com/the-zema-solutions/

http://www.datawatch.ze.com/

July 2014

Editorial 4

More LNG from This Side of the Pacific Ocean to Another: Is There Anyone Looking for Some? 4

Power 6

Platts Introduces Turkish Monthly Power Assessments 6

Argus Introduces New Assessments in European Electricity 7

WattEx Launched on New NGX TradePath Platform 7

CaISO Updates ISO Today 7

Mobile Application 7

NGX Expands Product Offering in ERCOT Market 8

Argus Removes UK Assessments 8

Petroleum 9

Platts to Publish Russia Jet Fuel Export Duty 9

Platts to Create Reformate FOB Barge Assessment 9

Platts: London-Time Brent and WTI Futures Assessments 9

Platts to Introduce 500 CST Rotterdam Bunker Assessment 10

Platts Begins New Asia Dirty Tanker Assessments 10

Platts Creates FOB USGC Light Straight Run Naphtha Assessment 10

Argus Adds Condensate Index to Crude Publication 11

Argus Lists New Crude Price Assessments 11

Argus Adds New Daily Assessments for Gasoline A-92 fca Ukrainian Ports 11

Argus Creates Additional Jet Fuel Series 12

Argus Adds Diesel and Jet Fuel Assessments to US Products 12

Argus Adds New Codes to DeWitt Benzene and Derivatives Publication 12

NYMEX Lists New Crude Oil Weekly Options on CME ClearPort 13

DME Launches New Trading Tool for Oman Futures 13

Platts to Cease Japan Petchems Export Prices in Yen/Kg 14

Platts to Stop Publishing Russia Light Ends Duty 14

Platts Removes Japan Domestic Polymers Assessments 14

Platts Discontinues Urals CFD Outrights 15

Argus Removes Ukrainian Gasoline Assessments 15

Argus Halts Several Russian Motor Fuels Assessments 15

Argus Removes Gasoil Bunker Rotterdam Assessments 16

Platts to Extend Distillate Derivatives Curve 16

Platts to Reflect New Russia Rail Tariffs in Netbacks 16

Platts Proposes to Expand FOB Singapore Assessments to FOB Straits 17

Argus Renames Ukrainian Gasoline Assessments 17

Argus Changes Differential Basis for Gasoil Bunker Rotterdam Assessments 17

NYMEX Amends Contract Quantity and Value Rule for Petroleum Futures Contracts 18

NYMEX Expands Listing Schedule for Six Brent Futures and Options Contracts 19

Natural Gas 21

New Argus Brent 901 Index 21

Argus Adds New Continuous Forwards and PA Codes for LNG Series 21

Argus Introduces New European Natural Gas Series 22

Argus Adds New Series to International LPG Publication 23

Argus Introduces New Assessments to NGL Americas 23

NYMEX Adds New Natural Gas Weekly Options Contracts on CME ClearPort 23

Assessment Descriptions in Argus International LPG Change 24

Natural Gas Assessment Names Change in Natural Gas Americas Publication 24

Argus Revises Descriptions for Assessments in NGL Americas Publication 24

Coal 25

Platts Adds Daily Coal Switching Price Indicator for the Netherlands and UK 25

Argus Renames Metallurgical Coal Assessment 25

Softs and Metals 9

Platts Proposes Chicago ITT Argo Any-Month Ethanol Assessment 26

Platts to Launch CIF NWE Industrial Wood Pellet Assessment 26

Argus Adds Ammonium Sulphate and Urea Assessments to Fertilizer Publication 27

COMEX Lists New Gold, Silver, and Copper Weekly Options on CME ClearPort 27

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LBMA Silver Price Solution to Be Determined by CME Group and Thomson Reuters 27

Platts Discontinues Tubular Market Report Data File 28

Platts to Discontinue Quarterly Iron Ore Lump Contract Price 28

Platts to Cease Publishing London Silver Fix 28

Platts and Kingsman to Enhance Weekly Global Ethanol Report 28

Platts Updates Dry Bulk Freight Assessments 29

Platts to Change London Silver Fix to Price 29

Finance 30

CME: Weekly Options on Foreign Exchange Futures to Be Cleared by CME ClearPort 30

Thomson Reuters Provides Currency Benchmarks for Kenya, Ghana, and Zambia 31

Thomson Reuters Acquires UBS Convertible Indices 31

S&P/TSX 60 ESG Index Launched by S&P Dow Jones Indices, RobescoSAM, and TSX 31

Eurex to Launch Variance Futures Based on EURO STOXX 50 32

ETF Securities Lists New ETNs on Xetra 32

ETF Securities Lists Range of Currency ETVs on Euronext 32

Two New SPDR ETFs Launched on Xetra 33

New UBS ETFs Introduced on Xetra 33

Lyxor UCITS ETF German Mid-Cap MDAX Launched on Xetra 34

Euronext Introduces Weekly Expiry Dates on CAC40 and AEX Futures 34

Markit to Launch Electronic Service for FX Options 34

Barchart Mobile Application Upgraded 35

Bahrain Bourse Introduces New Trading Engine Powered by NASDAQ OMX 35

TOCOM Deemed a Recognized Market Operator by Monetary Authority of Singapore 35

Thomson Reuters Increases OTC Data Coverage through Partnership with BGC Partners 36

Eurex Renames Products in Light of Changes to Calculation of Dow Jones-UBS Commodity Indexes 36

CME Changes Name for Commodity Index Futures and Swaps 36

Weather and Emissions 37

Argus: Data Code Frequency Change for Low-Carbon Fuel Standard Credits Prompt Assessments 37

Other 38

Bloomberg Takes Control of Dow Jones-UBS Commodity Index 38

Bloomberg Vault Introduces File Analytics Product 38

NOAA Introduces New PORTS Real-Time Data System to Aid Maritime Shipping Processes 38

News from Data Vendors 39

New Data Reports from ZEMA 39

Argus Welcomes Ofgem Support for Extending IOSCO PRA Principles 40

Propylene Expected to More Than Double its Output by 2017 41

Turkmenistan Chooses Argus as Energy Price Information Source 42

PEGAS: Half-Year Volumes More Than Double Year-On-Year 42

PEGAS: Successful Launch of ZTP/ZTPL Contracts and 24/7 Trading 43

EPEXSPOT: Power Trading Results in June 2014–15-Minute Volume Surges to All-Time High 44

Barchart Releases Java Client for OnDemand APIs 45

Monthly Market Analysis 46

Crude Oil Brent vs. WTI: Prompt-Month Contract (NYMEX) 46

Crude Oil Brent vs. WTI: Forward Curve (NYMEX) 47

North American Natural Gas Spot Prices (ICE) 48

Henry Hub Natural Gas Forward Curve (ICE) 49

Actual Weather (AccuWeather) 50

Electricity: Day-Ahead Prices (ICE) 51

In Depth 52

The Future of the Natural Gas Market Part One: Macro Drivers of Supply

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More LNG from This Side of the Pacific Ocean to Another:

Is There Anyone Looking for Some? By Olga Gorstenko

July 2014

In July 2014, the North American LNG bonanza was brought back to the front pages of the media again. Two more projects on the North Pacific shore announced that they are one step closer to entering the global market of natural gas trade. One question remains, though: is the world really waiting for them, and if “yes,” for how long?

One of the announced pending ventures will be based on Canadian soil. On July 8, 2014, an application was filed with the Canadian National Energy Board for permission to export 30 million metric tons of LNG per year from the Steelhead terminal in Anacla, a village 125 miles north of Vancouver Island, British Columbia. This $30-billion project, the largest LNG proposal as of today, will be liquefying gas transported from northern B.C. The operation is scheduled to start from 2020-2022.

Two weeks later, on July 22, another announcement that eclipsed Canada’s news (at least in terms of hard dollars, not production volume) came from a colder and tougher land. TransCanada Corp., the state of Alaska, and North Slope producers comprised of ExxonMobil,

ConocoPhillips, BP, and a few others filed an application with the U.S. Department of Energy for a permit to export up to 20 million metric tons of LNG yearly. Estimated to cost between $45 billion to $65 billion, the project is expected to become operative in 2024. The liquefaction plant and export terminal will be located in Nikiski, Alaska, connected through an 800-mile pipeline running to South-central Alaska.

There is no competition about which project is bigger and better, since one is more expensive and the other is more productive. The real question is: who will purchase all that output ten years from now? This is a multi-billion dollar question. Just think for a second: these two fresh additions are bringing the total number of proposed LNG projects along the U.S. and Canadian Pacific coast to 20, 16 of which are in B.C. Who will buy all that natural gas? According to the project proposals, Asian consumers will, which makes perfect sense given the geographical location of new facilities. There are a lot of supporters of this idea. The British Columbian government has been very aggressively pushing LNG projects, hoping to bring

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http://www.steelheadlng.com/steelhead-lng-and-huu-ay-aht-first-nations-sign-opportunity-development-agreement-for-lng-project-on-huu-ay-aht-first-nations-land-at-sarita-bay/

http://engage.gov.bc.ca/lnginbc/lng-projects/

http://engage.gov.bc.ca/lnginbc/lng-projects/

EditorOlga GorstenkoPhone: 778-296-4183 Email: [email protected]

Olga Gorstenko

July 2014

prosperity to the province. The B.C. government has estimated that the natural gas industry will bring $100 billion to a B.C. Prosperity Fund over the next 30 years, most of which will come from LNG sales to Japan and China. At least, that’s what is stated on the government website dedicated to LNG. In the U.S., the industry is urging the fed-eral government to accelerate the approval of LNG export applications.

Someone is urging, someone else is supporting. Meanwhile, China and Japan are taking the transportation of LNG from the Yamal plant in Russia into their own hands. On July 9, 2014, Mitsui O.S.K. Lines and China Shipping Company signed shipbuilding contracts with Daewoo of Korea to build three ice class LNG carriers. Yamal LNG is a $15-20 billion proposed project that is expected to start producing 16.5 million tons a year by 2016. Moving much faster and with a significantly smaller price tag, Russian LNG projects are putting North American producers in danger of losing the race to supply gas to Asian energy markets. And this is only the liquefied form of natural gas. Deliveries of conventional gaseous supplies by pipelines are also undergoing a serious overhaul. Read this month’s InDepth article, which analyzes the current geopolitical and market trends affecting the global supply of natural gas in general and LNG in particular, to learn more.

Capital cost is not the only factor adding to the financial inefficiency of the North American LNG sector. In the case of British Columbia, a special additional, provincial tax on LNG production has been proposed (I presume it is the source of that promised $100 billion to be brought to province from the LNG industry) which will negatively impact financing costs. Negotiations with First Nations groups and other parties to secure rights-of-way will also add to the bill. It looks like the local government is unaware of the fact that waving the LNG flag is not really solving much; one actually has to provide real incentives and relieve regulatory and financial uncertainties to see things happen.

There are a lot of natural gas projects out there that are capable of providing adequate supply to meet global demand. Taking things easy is not going to work this time. h

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Bruce Colquhoun, Phone: (604) 790-3299 Email: [email protected]

Have an idea for an article or would like to contribute to an upcoming issue? Write to us at [email protected]

To get real-time data updates, follow @zedatawatch on Twitter

To access previous issues of ZE DataWatch, go to datawatch.ze.com

ZEMA Suite Inquiries

Bruce Colquhoun, Phone: (604) 790-3299 Email: [email protected]

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http://www.mol.co.jp/en/pr/2014/14036.html

mailto:bruce.c%40ze.com?subject=Datawatch

mailto:bruce.c%40ze.com?subject=Datawatch

Platts Introduces Turkish Monthly Power AssessmentsOn July 1, 2014, Platts launched a daily assessment of Turkish month-ahead baseload power (TRY/MWh TKCSM00, Eur/MWh TKCTM00) and a respective rolling monthly average (TRY/MWh TBRCM00, Eur/MWh TBRTM00).

Platts has also launched Turkish month-ahead spark spread indicators at 45% (TRY/MWh TKSSM00, Eur/MWh TKSTM00) and 50% (TRY/MWh TKSSC00, Eur/MWh TKSTC00) efficiencies, alongside a 40% efficiency month-ahead dark spread (TRY/MWh TKSCD00, Eur/MWh TKSTD00) indicator.

These assessments and indicators are published on European Power Alert pages EP0260 and EP0261 and in Platts Market Data.

The daily power assessments are also published in European Power Daily, while the rolling month-ahead average and the spark and dark spread indicators are published in Turkish Power Weekly, a new weekly supplement to European Power Daily.

See the original announcement.

For more information on European electricity prices, view ZEMA, ZE’s data management solution for electricity market participants. ZEMA collects numerous Platts records, many of which are major sources of electricity market updates. To learn more about ZEMA’s data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.

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http://www.platts.com/subscriber-notes-details/26825620

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


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rArgus Introduces New Assessments in European ElectricityOn July 28, 2014, Argus introduced the new phase of the U.K. OTC base load and peak load month electricity contracts. These daily published series start the 5th forward Gregorian month.

Data pertinent to the new series has been added to the DEL files in the DAEE folder of server ftp.argusmedia.com.

PA CodeTime Stamp

Price Type

Continuous Forward

Description

PA0012600 6 1 5UK OTC base load month

PA0012600 6 2 5UK OTC base load month

PA0012607 6 1 5UK OTC peak load month

PA0012607 6 2 5UK OTC peak load month


For more information on European electricity prices, view ZEMA, ZE’s data management solution for electricity market participants. ZEMA collects numerous Argus records, many of which are major sources of electricity market updates. To learn more about ZEMA’s data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.

WattEx Launched on New NGX TradePath PlatformOn July 10, 2014, NGX announced the launch, through its wholly-owned subsidiary Alberta Watt Exchange Limited, of electricity trading on the NGX TradePath platform. NGX TradePath is a browser-based trading system designed and developed for the WattEx Ancillary Services market and trading partners.

WattEx facilitates electronic contract transactions and clearing functions for electricity ancillary services in Alberta. The Alberta Electric System Operator uses WattEx to procure its operating reserve electricity for the Alberta grid.


For more NGX data, use ZEMA, ZE’s data management solution for electricity market participants. ZEMA collects records containing forecast, load, and price data. To learn more, visit http://www.ze.com/the-zema-solutions/.

CaISO Updates ISO Today Mobile ApplicationOn July 10, 2014, the California Independent System Operator (CaISO) introduced an updated version of its mobile application, ISO Today. The application now features a net demand chart that shows current electricity demand without wind and solar generation; an extended calendar, which shows entries up to three months in advance; and a faster emergency alert notification system.

The ISO Today application also possesses a chart that displays the location and hourly production of the state’s renewable energy resources, which helps market participants track renewable interconnections. Finally, it has a day-ahead wholesale energy price map. See the original announcement.

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140728aee.pdf


http://www.tmx.com/en/news_events/news/news_releases/2014/07-10-2014_TMXGroup-NGXLaunchesTradepath.html


http://www.caiso.com/Documents/CaliforniaISO_Updates_ImprovesISO_TodayMobileApp.pdf


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rNGX Expands Product Offering in ERCOT MarketOn July 22, 2014, NGX added the following new products for the clearing of physical power in the ERCOT market:

Ancillary ERCOT Reg-Up, Reg-Down, RRS

Tenor Daily, BalMo, Monthly, Quarterly, and Calendar Strips

Lot Size 1MW

ATC Load Zones: Houston, North, South, West

Tenor Daily, BalMo, Monthly, Quarterly, and Calendar Strips

Lot Size AMW


ZEMA was developed to meet the needs of participants in deregulated North American energy markets; it is equipped with advanced data collection and analytic capabilities that can handle and manipulate ERCOT market data with ease. To learn more, visit http://www.ze.com/the-zema-solutions/.

Argus Removes UK AssessmentsOn July 25, 2014, Argus removed several series from the DEL files in the DAEE folder of server ftp.argusmedia.com; these series were from its European Electricity publication.

The next phase of the EFA contract expiry is for the end of the 2nd forward EFA month on July 25, 2014; the start of the 5th forward Gregorian month is on July 28, 2014.

PA Code Time Stamp Price Type Continuous Forward Description

PA0002670 6 1 2 UK OTC base load EFA month



PA0002697 6 1 2 UK OTC peak load EFA month

PA0002697 6 2 2 UK OTC peak load EFA month


http://www.ngx.com/pdf/NGX%20Continues%20to%20Expand%20its%20ERCOT%20Product%20Offerings.pdf


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140728aee.pdf


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Platts to Publish Russia Jet Fuel Export DutyOn October 1, 2014, Platts will start publishing a jet fuel export duty for Russia. This value will be published in U.S. dollars per metric ton.

Platts currently reflects a jet fuel export duty at 66% of the Russian crude oil export duty in its Russian jet fuel export netback calculations, but this value is not currently published in its own right.


Keep track of the European jet fuel market in ZEMA, ZE’s data management solution for petroleum market participants. ZEMA automates data collection, analysis, and integration with downstream systems. To learn more, visit http://www.ze.com/the-zema-solutions/.

Platts to Create Reformate FOB Barge AssessmentOn October 1, 2014, Platts will launch an assessment for reformate FOB Amsterdam/Rotterdam barges. Platts proposes to add this assessment to enhance its coverage of the gasoline blend components market.

The barge assessment will represent min 99.9 RON, 0.810 g/ml min density, 3 ppm max sulfur, 38 kPa max Vapour Pressure, 2% max Benzene, and 65% min Aromatics material.

The assessment will reflect parcels of 3,000-5,000 mt each, for loading 3-15 days forward (Monday-Tuesday) or 5-15 days forward (Wednesday-Friday).

Platts expects to publish these new assessments in the European Marketscan and on PGA Europe.


Platts: London-Time Brent and WTI Futures AssessmentsOn September 1, 2014, Platts will publish 16:30 London time outright price and time-spread assessments for ICE Brent crude futures and NYMEX WTI crude futures.

The new suite of outright price assessments will cover 35 granular months, 11 quarters, and 3 years forward from the date of publication for both futures contracts. Platts will also publish time spreads for all 35 granular months, 11 quarters, and 3 years. Platts will maintain a rolling schedule in line with both the futures exchanges’ expiry schedules.

These assessments will build upon Platts’ existing ICE Brent crude and NYMEX WTI crude futures assessments. Platts currently publishes ICE Brent crude futures four months out and NYMEX WTI crude futures two months out.


ZEMA collects over 1,000 records related to petroleum products on a daily basis. To learn how to gain access to ZEMA’s replete library of crude market intelligence, visit http://www.ze.com/the-zema-solutions/.






Platts to Introduce 500 CST Rotterdam Bunker AssessmentOn August 1, 2014, Platts launched a new assessment for 500 CST, 3.5% sulfur bunker fuel delivered basis Rotterdam. The new assessment is published alongside all existing Rotterdam bunker fuel assessments.

The assessment reflects the value of oil at 16:30 London time, for loading one to eight days forward. It also reflects typical barge sizes of 300-1,000 mt. During U.K. public holidays, the time stamp associated with the assessment may change.

The specification reflected in the new assessment typically conforms to ISO 8217: 2010 specifications, category ISO-F, RMK 500. Specification and assessment parameters are detailed in Platts’s Europe and Africa Refined Oil Products Methodology and Specifications Guide. The new assessment conforms to Platts’s existing assessment parameters for bunker fuel across Europe and Africa.


ZEMA is equipped with advanced data collection capabilities, and has the capacity to collect all Rotterdam bunker fuel assessment data generated by Platts’s new assessment. To learn more, visit http://www.ze.com/the-zema-solutions/.

Platts Begins New Asia Dirty Tanker AssessmentsOn July 16, 2014, Platts launched three new assessments for the value of dirty medium range tanker freight. These assessments reflect growth in the supply and trading of fuel oil along new routes in the East of Suez tanker markets.

The new assessments–East Coast India to Singapore; Singapore to Chittagong; and Singapore to Japan–reflect strong market interest in dirty MR tankers, with almost 70 dirty MR tankers currently trading each month in Asia. The new assessments reflect modern MR tonnage.

These assessments are published on a lump-sum basis and expressed as U.S. dollars per voyage. The lump-sum assessments are also published in dollars per metric ton, which is calculated by dividing the primary lump-sum assessments by the cargo size reflected in the assessment.

These new assessments can be found in Platts Dirty Tankerwire and Platts Global Alert page 2970.


Platts Creates FOB USGC Light Straight Run Naphtha AssessmentOn July 1, 2014, Platts launched a light straight run naphtha assessment for parcels loading at U.S. Gulf Coast terminals on an FOB basis.

Platts noted that it launched this assessment because the significant growth in condensate production, a result of liquids-rich gas drilling, has shifted the U.S. from a net importer to a net exporter of naphtha, and light straight run naphtha exports are expected to increase substantially going forward as rising U.S. supplies will continue to overwhelm demand.

The assessment is published as an outright price in cents/gallon and in dollars/metric ton. Platts uses a conversion factor of 4.01 gallons/mt to convert between dollars/metric ton and cents/gallon. Platts also publishes a differential to the Platts non-Targa Mont Belvieu natural gasoline pipeline Month 1 assessment (PMABY05) from the first business day of the month until the 15th of the month and rolls it to the Month 2 assessment (AAWUG00) on the first business day after the 15th of the month until the end of the month.

The specifications are as follows: maximum 83 API gravity, maximum 250 ppm sulfur, 13 RVP, minimum 65 paraffin content, minimum color of 20, maximum 50 ppm oxygenates, maximum 10 ppb mercury, maximum 50 ppm lead, and maximum 10 ppm H2S. The location of the assessment is typical terminals on the U.S. Gulf Coast.

The assessment will reflect the value of 50,000 barrel parcels loading 10-30 days forward from the date of publication. Other trade sizes and quality may be considered for the assessment and normalized for size and quality.

In the assessment process, Platts gathers bids, offers, and transactional information for the FOB USGC light straight run naphtha market and normalizes these inputs to 2:15 p.m. Houston time.


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Argus Adds Condensate Index to Crude PublicationOn August 1, 2014, Argus added a new Argus Condensate Index (ACI) to its Argus Crude publication and two supporting freight rates. The methodology behind this move is explained in the Argus Crude Methodology available online.

The following data series will be added to the DMC files in the /DCRDEASIA folder in the server ftp.argusmedia.com:


PA0014733 0 20 0 Dirty Qatar-southeast Asia VLCC $/t

PA0014734 0 20 0 Dirty northwest Australia-southeast Asia Aframax $/t

PA0014736 8 4 0 Argus Condensate Index (ACI)


ZEMA collects a range of Argus crude oil and petroleum products data, including data from the European Crude (Spot Prices) record and the Argus Crude record. To learn more, visit http://www.ze.com/the-zema-solutions/.

Argus Lists New Crude Price Assessments On July 28, 2014, Argus added several new price series to its Argus Crude and Argus Americas Crude publications and data modules. Changes apply to data in the DHC and DHCA modules in the DCRDEUS folder of server ftp.argusmedia.com.


PA0000245 2 1 2 WTI Midland month




PA0003358 2 4 2 WTI Midland weighted average month

PA0003358 2 49 2 WTI Midland weighted average month

PA0004061 2 49 2 WTI Midland MTD weighted average month


Argus Adds New Daily Assessments for Gasoline A-92 fca Ukrainian PortsOn July 21, 2014, Argus introduced new daily assessments for Gasoline A-92 fca Ukrainian ports in Argus Моторное топливо Украины (Argus Ukrainian Motor Fuels). The following series are located in the DUMF module.


PA0014528 0 1 0 Gasoline A-92 fca Ukrainian ports

PA0014528 0 2 0 Gasoline A-92 fca Ukrainian ports


ZEMA collects numerous petroleum market reports, including many records about gasoline assessments. To learn more about the data ZEMA collects, visit http://www.ze.com/the-zema-solutions/data-coverage/.

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140801crd.pdf


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140728acr.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140721umf.pdf


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Argus Creates Additional Jet Fuel SeriesOn July 21, 2014, Argus added new series to Argus Jet Fuel. Changes will apply to data in the djetfuel csv files in the DJETFUEL folder of server ftp.argusmedia.com.


PA0014711 2 1 1 Jet fuel NYH Colonial 54 pipeline offline cycle





Argus Adds Diesel and Jet Fuel Assessments to US ProductsOn July 21, 2014, Argus added many new diesel and jet fuel assessments from the Colonial pipeline to Argus US Products. Changes apply to data in the DHP and DHPS modules in the DUSPR folder of server ftp.argusmedia.com.

To view a full list of assessments, see the original announcement.

To learn more about diesel and jet fuel prices in Europe and the U.S., use ZEMA to view records from Argus. To book a complimentary ZEMA demonstration, visit http://www.ze.com/book-a-demo/.

Argus Adds New Codes to DeWitt Benzene and Derivatives PublicationOn June 26, 2014, Argus added new benzene and styrene weekly assessments for Asian markets to its Argus DeWitt Benzene and Derivatives publication. These codes are now listed in the dbenzeneweekly data file in the DATA/Dbenzene Weekly folder of server ftp.argusmedia.com.

To view a full list of new codes, see the original announcement.

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140721jetfuel.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140721usp.pdf

http://www.ze.com/book-a-demo/

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140626benzeneweekly.pdf


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NYMEX Lists New Crude Oil Weekly Options on CME ClearPortOn trade date August 11, 2014, the New York Mercantile Exchange (NYMEX) will list new crude oil weekly options contracts on CME ClearPort, where they will be available for submission for clearing. These contracts are currently listed for trading on the NYMEX trading floor and CME Globex.

Title CMX Floor, CME Globex, CME ClearPort Commodity Code Rule Chapter

Crude Oil Weekly Option LO1-LO5 1011


ZEMA possesses a wide coverage of crude oil market data. The ZEMA graph below displays NYMEX crude oil prices. This graph, generated using NYMEX future settlements, shows two moving averages which indicate an overall market trend.

DME Launches New Trading Tool for Oman FuturesOn July 1, 2014, the Dubai Mercantile Exchange (DME) launched a new trading mechanism, trade at marker (TAM), for customers of the DME Oman crude oil futures contract.

TAM allows DME customers to buy and sell oil at a price directly linked to DME’s 12:30 p.m. marker price. The average of the month’s marker prices on DME is the basis of the crude oil export price of the Sultanate of Oman and the Emirate of Dubai.

DME noted that the ability to trade the marker price directly may be useful to investors who want exposure to Oman and Dubai’s crude oil export price but who may not necessarily want to trade during DME’s settlement window. The TAM trading mechanism can be traded on a daily basis for the front three months of the DME Oman crude oil contract.


ZEMA, ZE’s data management solution for oil market participants, collects over 650 oil records on a daily basis. To learn more about how to leverage ZEMA’s rich library of oil market intelligence, visit http://www.ze.com/the-zema-suite/.

Created with ZEMA ©

http://www.cmegroup.com/tools-information/lookups/advisories/ser/files/SER-7112R.pdf

http://www.dubaimerc.com/news/01jul14.aspx

http://www.ze.com/the-zema-suite/

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Platts to Cease Japan Petchems Export Prices in Yen/KgOn January 30, 2015, Platts will discontinue its Japan domestic petrochemicals exports assessments in yen/kilogram. These assessments are published on page PCA356 and PCA357 and found under the codes listed below in the Platts database.

Symbol description:

• AAKQG00 LDPE average export price Japan Jpy/kg Monthly • AAKQH00 HDPE average export price Japan Jpy/kg Monthly • AAKQI00 PP (Homo) average export price Jpy/kg Monthly • AAKQJ00 PP (Copol) average export price Japan Jpy/kg Monthly • AAKQK00 PVC average export price Japan Jpy/kg Monthly • AAKQL00 PS average export price Japan Jpy/kg Monthly • AAKQM00 ABS average export price Japan Jpy/kg Monthly • AASEN00 Toluene average export price Japan Jpy/kg Monthly


Platts to Stop Publishing Russia Light Ends DutyOn January 2, 2015, Platts will stop publishing its Russian light ends export duty. This announcement follows Platts’s proposal on June 17 to discontinue the value. This export duty represents an average, calculated by Platts, of Russia’s individual naphtha and gasoline export duties. The duties for both products will continue to be published on their own.


Platts Removes Japan Domestic Polymers AssessmentsOn September 30, 2014, Platts will discontinue its Japan domestic polymers assessments. These assessments are published on page PCA055 and found under the following codes in the Platts price database:

Symbol Description

AALES00 LDPE Platts Domestic Japan Jpy/kg Monthly

AALET00 LDPE MOF CIF Japan Jpy/kg Monthly

AALEU00 LLDPE Platts Domestic Japan Jpy/kg Monthly

AALEX00 LLDPE MOF CIF Japan Jpy/kg Monthly

AALEY00 HDPE Film Platts Domestic Japan Jpy/kg Monthly

AALEZ00 HDPE Film MOF CIF Japan Jpy/kg Monthly

AALFA00 PP Homo Platts Domestic Japan Jpy/kg Monthly

AALFB00 PP Homo MOF CIF Japan Jpy/kg Monthly

AALFC00 PP Copol Platts Domestic Japan Jpy/kg Monthly

AALFD00 PP Copol MOF CIF Japan Jpy/kg Monthly

AALFE00 GPPS Platts Domestic Japan Jpy/kg Monthly

AALFF00 GPPS MOF CIF Japan Jpy/kg Monthly

AALFG00 PVC Platts Domestic Japan Jpy/kg Monthly

AALFH00 PVC MOF CIF Japan Jpy/kg Monthly

AALFJ00 ABS Platts Domestic Japan Jpy/kg Monthly

AALFK00 ABS MOF CIF Japan Jpy/kg Monthly





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Platts Discontinues Urals CFD OutrightsOn August 1, 2014, Platts discontinued outright values associated with Northwest European and Mediterranean Urals CFD markets. Platts discontinued these values, which were generated by applying assessed CFD values to Dated Brent, following feedback from the market that providing these outright values was not valuable.

These markets trade as differentials, and Platts will continue to publish assessments for differentials in both the Northwest European and Mediterranean Urals CFD markets. These assessments will continue to be published on Platts Global Alert page 1616 and 1618, respectively, and in Platts Crude Oil Marketwire.


Argus Removes Ukrainian Gasoline AssessmentsOn July 21, 2014, Argus removed several Ukrainian gasoline assessments from its Argus Моторное топливо Украины (Argus Ukrainian Motor Fuels) publication. Assessments were also removed from the DUMF module.


PA0007210 0 1 0 Gasoline A-80 fca Kremenchug

PA0007210 0 2 0 Gasoline A-80 fca Kremenchug

PA0009518 0 1 0 Gasoline A-95 cif Kherson





Argus Halts Several Russian Motor Fuels AssessmentsOn July 17, 2014, Argus announced that several series (listed below) have inadvertently been left active in its CSV files since August 1, 2013; however, these series should have been stopped on July 31, 2013. The data since that date has not changed, and Argus has stopped the series effective July 31, 2013 and deleted the historical data from August 1, 2013 to July 9, 2014 to correct this.


PA5000966 26 1 0 Gasoline AI-95 Salavat Tu snapshot

PA5000966 26 2 0 Gasoline AI-95 Salavat Tu snapshot

PA0004802 26 1 0 Gasoline AI-95 Salavat

PA0004802 26 2 0 Gasoline AI-95 Salavat

Argus also noted that some of the data it uploaded previously should be deleted, as the values are incorrect:

Code TS Type PT Code Dates Deleted (Inclusive) Price

PA0004802 2 1 1-Aug-2013 to 9-Jul-2014 36500

PA0004802 2 2 1-Aug-2013 to 9-Jul-2014 37000

PA0004802 2 8 1-Aug-2013 to 9-Jul-2014 36750

PA5000966 2 1 6-Aug-2013 to 8-Jul-2014 36500

PA5000966 2 2 6-Aug-2013 to 8-Jul-2014 37000

PA5000966 2 8 6-Aug-2013 to 8-Jul-2014 36750




http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140716amtr.pdf

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Argus Removes Gasoil Bunker Rotterdam AssessmentsOn July 1, 2014, Argus removed several Gasoil bunker Rotterdam assessments. Argus did so in response to ICE changing their gasoil futures contract from high sulphur to low sulphur for post-January 2015 contracts.

The following assessments were stopped in the DAMarineF folder of server ftp.argusmedia.com.


PA0013467 6 1 0 Gasoil bunker Rotterdam (ICE gasoil)





Platts to Extend Distillate Derivatives CurveOn September 1, 2014, Platts will extend its ultra-low sulfur diesel, gasoil, and jet derivative assessments beyond January 2015. This announcement follows a proposal made on May 21 to reflect growing market liquidity in these contracts.

On April 29, ICE announced it would suspend the low sulfur gasoil futures contract from next year. Instead, ICE said its legacy gasoil futures contract would be extended and would reflect the ultra-low sulfur diesel specification from the February 2015 contract onwards.


Platts to Reflect New Russia Rail Tariffs in NetbacksOn August 11, 2014, Platts will change the railway tariffs reflected in its Russian refined oil product netbacks to reflect updated tariffs that are expected to come into effect on August 9.

Russian Railways is expected to increase export shipment tariffs for fuel oil, gasoline, and jet by 13.4%. For export diesel shipments, tariffs will rise 12.5%, with the exception of export shipments to Far East ports, which will increase 13.4%, according to Russian Railways.


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140701amarine.pdf



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Platts Proposes to Expand FOB Singapore Assessments to FOB StraitsOn July 17, 2014, Platts announced that it is requesting feedback on its proposal to amend the loadpoints reflected in its FOB Singapore assessments for fuel oil, middle distillates, and gasoline with effect from July 1, 2015.

Platts proposes that from July 1, 2015, the FOB Singapore assessments will reflect “FOB Straits” bids, offers, and transactions. Platts has no plans to amend the nomenclature of its published FOB Singapore assessments and plans to continue to reference these assessments in all publications under the name of “FOB Singapore.”

For FOB Straits bids and offers, Platts proposes that buyers and sellers not state a specific loadpoint at the point of communication to Platts, and proceed to nominate loading from one of the locations in Singapore and Malaysia that are already approved for the Platts market on close assessment process.

For FOB Straits transactions, sellers will nominate an approved loadpoint seven days prior to loading for all products, except gasoline (loadpoint is nominated 10 days prior to loading for gasoline). Such approved loadpoints may include approved terminals in Singapore or southern Malaysia.

Additionally, Platts requests comments around the possible future inclusion of Indonesian terminals in the process. Platts does not currently reflect any Indonesian terminals in its FOB Singapore assessments. If a seller nominates a loadpoint that would impose demonstrable costs above the standard costs associated with loading from a Singapore terminal, extra costs will be borne by the seller.

Under this revised approach, from July 1, 2015, Platts will no longer publish FOB Singapore or FOB Malaysia bids, offers, or transactions in its assessment process. Platts will only publish bids and offers and transactions as FOB Straits.

This proposed change in methodology reflects the fact that Singapore refined oil products markets have grown significantly in the last several years. The associated spot markets now regularly include trades for commodities loading close to, but beyond the geographic borders of, Singapore.

Platts requested feedback by September 30, 2014, to [email protected] and [email protected].


Argus Renames Ukrainian Gasoline AssessmentsOn July 21, 2014, Argus renamed a series of Ukrainian gasoline assessments located in Argus Моторное топливо Украины (Argus Ukrainian Motor Fuels).

PA Code Old Description New Description

PA0007832 Gasoline A-95 cif Feodosiya Gasoline A-95 cif Ukrainian ports

PA0009517 Gasoline A-95 fca Feodosiya/fca Kherson Gasoline A-95 fca Ukrainian ports

PA0012391 Gasoline diesel summer 50ppm fca Ukrainian ports Gasoil diesel summer 10ppm fca Ukrainian ports

PA0012392 Gasoil diesel winter 50ppm fca Ukrainian ports Gasoil diesel winter 10ppm fca Ukrainian ports

PA0012999 Gasoil diesel summer 10ppm fca IlovaiskGasoil diesel summer 10ppm fca Kharkov/fca Donetsk

PA0013000 Gasoil diesel winter 10ppm fca IlovaiskGasoil diesel winter 10ppm fca Kharkov/fca Donetsk


Argus Changes Differential Basis for Gasoil Bunker Rotterdam AssessmentsOn July 1, 2014, Argus changed the differential basis for several Gasoil bunker Rotterdam assessments. This change was implemented in response to ICE changing their gasoil futures contract from high sulphur to low sulphur for post-January 2014 contracts.

mailto:[email protected]



The following series are changing differential basis from ICE LS gasoil to ICE gasoil.


PA0011472 6 1 0 Gasoil bunker Rotterdam





NYMEX Amends Contract Quantity and Value Rule for Petroleum Futures ContractsOn August 4, 2014, NYMEX will amend the contract quantity and value rule for the petroleum futures contracts listed below. These contracts are available for trading on CME Globex and the NYMEX trading floor; they are available for submission for clearing through CME ClearPort.

Contract Name CPC/Globex/NX Pit Codes Current Contract Quantity Amended Contract Quantity

Daily European Naphtha CIF NWE (Platts) Futures

NCP 1,000mt 100mt

Daily European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures

FOR 1,000mt 100mt

Daily Gasoline Euro-bob Oxy NWE Barges (Argus) Futures

GBR 1,000mt 100mt

Daily European 1% Fuel Oil Cargoes FOB NWE (Platts) Futures

FCN 1,000mt 100mt


The ZEMA graph below shows petroleum historical prices from NYMEX. It reveals the relations between price bands, moving averages, and daily prices.

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http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140701amarine.pdf

http://www.cmegroup.com/tools-information/lookups/advisories/ser/files/SER-7124.pdf

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NYMEX Expands Listing Schedule for Six Brent Futures and Options ContractsOn trade date August 4, 2014, NYMEX will expand the listing schedule of six Brent futures and options contracts. These contracts are listed for trading on CME Globex and the NYMEX trading floor; they are available for submission for clearing through CME ClearPort.

Contract TitleCME Globex Code

Rulebook Chapter

Current CME Globex Listing Schedule

Amended CME Globex Listing Schedule

Brent Crude Oil Option OSX 376Consecutive monthly contracts are listed for 36 months

Unchanged

Brent Crude Oil European Financial Option

BE 378Consecutive monthly contracts are listed for 6 months

Unchanged

Brent Crude Oil Average Price Option

BA 379Consecutive monthly contracts are listed for 18 months

Unchanged

Brent Crude Oil Penultimate Financial Futures

BB 692Consecutive monthly contracts are listed up to and including December 2019

Monthly contracts are listed for the current year and the next 7 consecutive calendar years

Brent Financial Futures CY 696Consecutive monthly contracts are listed up to and including December 2019


Brent Crude Oil Last Day Financial Futures

BZ 698Consecutive monthly contracts are listed up to and including December 2019


Brent Crude Oil Option OS 376Consecutive monthly contracts are listed up to and including December 2019


Brent Crude Oil European Financial Option

BE 378Consecutive monthly contracts are listed up to and including December 2019


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Contract TitleCME Globex Code

Rulebook Chapter

Current CME Globex Listing Schedule

Amended CME Globex Listing Schedule

Brent Crude Oil Average Price Option

BA 379Consecutive monthly contracts are listed up to and including December 2019


Brent Crude Oil Penultimate Financial Futures

BB 692Consecutive monthly contracts are listed up to and including December 2019


Brent Financial Futures CY 696Consecutive monthly contracts are listed up to and including December 2019


Brent Crude Oil Last Day Financial Futures

BZ 698Consecutive monthly contracts are listed up to and including December 2019



The ZEMA graph below shows the prices of Brent futures and miNY crude oil futures. It was generated using NYMEX future settlements (oil) and their moving correlations. ZEMA’s powerful visualization functionalities enable analysts to reveal hidden relations between the products they are interested in.




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sNew Argus Brent 901 IndexOn August 1, 2014, Argus added a new series to its European Natural Gas publication. This series, the Argus Brent 901 index, is an average of Argus North Sea forward crude oil price assessments calculated to reflect the crude oil price references common in long-term gas supply contracts. Full details of the methodology are available at direct.argusmedia.com.

The following series has been added to the DNG files in the DENG folder of server ftp.argusmedia.com:


PA0014130 6 4 1 Argus Brent 901 index month


ZEMA collects Argus natural gas data, including data from the Argus International LPG record and the Argus LNG Daily record. To learn more about ZEMA, book a free demonstration today at http://www.ze.com/book-a-demo/.

Argus Adds New Continuous Forwards and PA Codes for LNG SeriesOn July 16, 2014, Argus added new series to its Argus LNG Daily publication and data module. The following PA code details are now located in the DLNGD module in the DLNGD folder of server ftp.argusmedia.com.

New continuous forwards have been added for the following series:


PA0010764 6 1 3 LNG fob West Africa (AWAF) half-month



PA0011191 6 1 3 LNG fob Trinidad and Tobago half-month



PA0013148 0 1 3 LNG fob Iberian Peninsula reload half-month



New PA codes have been added for the series listed below:


PA0014289 0 1 1 LNG fob Atlantic Basin half-month










ZEMA, ZE’s data management solution for LNG market participants, helps users keep track of data updates like the ones above. Not only does ZEMA automatically collect data, it also possesses an extensive library of analytic formulas which help users transform LNG data into real market intelligence. To learn more, visit http://www.ze.com/the-zema-solutions/.

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140801eng.pdf


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140716lngd.pdf


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sArgus Introduces New European Natural Gas Series On July 14, 2014, Argus introduced the following new series to its Argus European Natural Gas publication and data module. The following PA code details appeared in the DNG module in the DENG folder of server ftp.argusmedia.com.

New continuous forwards have been added for the following series:


PA0003041 6 1 0 Natural gas TTF month



PA0006136 6 8 0 Natural gas TTF-Zee basis Eur/MWh month

PA0006142 6 8 0 Natural gas TTF-Zee basis p/th month

New PA codes have been added for the series listed below:


PA0014238 6 1 0 Natural gas TTF week-ahead



PA0014253 6 8 0 Natural gas PEG Sud-TTF Eur/MWh Basis day-ahead

PA0014254 6 8 0 Natural gas PEG Sud-PEG Nord Eur/MWh Basis day-ahead


The ZEMA graph below shows the monthly spread of natural gas TTF-Zee basis (PA0006136), a product located in Argus Natural Gas Futures. Copyright © 2014. Argus Media Ltd, All rights reserved. http://www.argusmedia.com/Crude-Oil/Argus-Russian-Crude-Exports.

ZEMA users are equipped to collect, analyze, and store natural gas market data as soon as it becomes available. In addition, the solution’s analytic library possesses an extensive range of formulas which help market participants transform this data into market intelligence. To learn more, book a complimentary ZEMA demonstration at http://www.ze.com/book-a-demo/.


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714eng.pdf


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sArgus Adds New Series to International LPG PublicationOn July 14, 2014, Argus added the following new PA codes to Argus International LPG:


PA0014132 2 1 1 Ethane Mt Belvieu Targa month

PA0014132 2 2 1 Ethane Mt Belvieu Targa month

PA0014135 2 4 1 Ethane Mt Belvieu Targa VWA month


Argus Introduces New Assessments to NGL AmericasOn July 14, 2014, Argus introduced many new assessments to its Argus NGL Americas publication. To view a full list of new assessments, see the original announcement.

NYMEX Adds New Natural Gas Weekly Options Contracts on CME ClearPortOn trade date August 11, 2014, the New York Mercantile Exchange (NYMEX) will list new natural gas weekly options contracts on CME ClearPort, where they will be available for submission for clearing. These contracts are currently listed for trading on the NYMEX trading floor and CME Globex.


Natural Gas Weekly Option ON1-ON5 1012


The ZEMA graph below was generated using NYMEX data regarding the future settlement of a natural gas product. ZEMA possesses a range of inbuilt analytic formulas, including the MACD formula listed in this graph, which can be usefully applied to data from NYMEX to produce market intelligence.


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714lpg.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714ngl.pdf


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sAssessment Descriptions in Argus International LPG ChangeOn July 14, 2014, Argus changed several assessment descriptions in Argus International LPG. These changes apply to the dpg and dpgus files in the /DPG folder of server ftp.argusmedia.com.


PA0000373 Butane Mt Belvieu Non-LST (Non-LDH) month Butane Mt Belvieu Enterprise month

PA0000389 Ethane Mt Belvieu Non-LST (Non-LDH) month Ethane Mt Belvieu Enterprise month

PA0000391Ethane/propane mix Mt Belvieu Non-LST (Non-LDH) month

Ethane/propane mix Mt Belvieu Enterprise month

PA0000393 Isobutane Mt Belvieu Non-LST (Non-LDH) month Isobutane Mt Belvieu Enterprise month

PA0000422 Propane Mt Belvieu Non-LST (Non-LDH) month Propane Mt Belvieu Enterprise month

PA0003144 Butane Mt Belvieu Non-LST MTD average month Butane Mt Belvieu Enterprise MTD average month

PA0003145 Propane Mt Belvieu Non-LST MTD average month Propane Mt Belvieu Enterprise MTD average month

PA0010774 Butane Mt Belvieu Non-LST (Non-LHD) quarter Butane Mt Belvieu Enterprise quarter


Natural Gas Assessment Names Change in Natural Gas Americas PublicationOn July 14, 2014, the names of several assessments in Argus’s Natural Gas Americas publication were revised. Changes apply to the dnga data files in the /DNGA folder of server ftp.argusmedia.com.


PA0010900Frac spread Ethane Mt Belvieu non-LST (usc/usg)

Frac spread Ethane Mt Belvieu Enterprise (Usc/usg)

PA0010901Frac spread Propane Mt Belvieu Non-LST (usc/usg)

Frac spread Propane Mt Belvieu Enterprise (usc/usg)

PA0010902Frac spread Butane Mt Belvieu Non-LST (usc/usg)

Frac spread Butane Mt Belvieu Enterprise (usc/usg)

PA0010903Frac spread Isobutane Mt Belvieu Non-LST (usc/usg)

Frac spread Isobutane Mt Belvieu Enterprise (usc/usg)

PA0010904Frac spread Natural Gasoline Mt Belvieu Non-LST (usc/usg)

Frac spread Natural Gasoline Mt Belvieu Enterprise (usc/usg)

PA0010905Frac spread Ethane Mt Belvieu Non-LST ($/MnBtu)

Frac spread Ethane Mt Belvieu Enterprise ($/MnBtu)

PA0010906Frac spread Propane Mt Belvieu Non-LST ($/MnBtu)

Frac spread Propane Mt Belvieu Enterprise ($/MnBtu)

PA0010907Frac spread Butane Mt Belvieu Non-LST ($/MnBtu)

Frac spread Butane Mt Belvieu Enterprise ($/MnBtu)

PA0010908Frac spread Isobutane Mt Belvieu Non-LST ($/MnBtu)

Frac spread Isobutane Mt Belvieu Enterprise ($/MnBtu)

PA0010909Frac spread Natural Gasoline Mt Belvieu Non-LST ($/MnBtu)

Frac spread Natural Gasoline Mt Belvieu Enterprise ($/MnBtu)


Argus Revises Descriptions for Assessments in NGL Americas PublicationOn July 14, 2014, Argus changed the descriptions of several assessments in its Argus NGL Americas publication. These changes apply to data in the dngl data files in the /DNGL folder of server ftp.argusmedia.com.

To view a full list of impacted assessments, see the original announcement.

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714lpg.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714nga.pdf

http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140714ngl.pdf

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Platts Adds Daily Coal Switching Price Indicator for the Netherlands and UKOn August 1, 2014, Platts launched a daily coal switching price indicator (CSPI) for the Netherlands and the U.K. that calculates the threshold needed for gas prices to be more competitive than coal prices as input fuel in power generation.

The CSPIs are used for the month-ahead, quarter-ahead, and year-ahead periods in each market and include both 50% and 45% HHV gas-fired plant efficiency.

The indicators are calculated using Platts corresponding assessments for coal and EUAs, which are currently published in European Power Daily and Coal Trader International.

The CSPIs are published in European Power Daily and European Gas Daily, on European Power Alert and in Platts Market Data.

New symbols are as follows:

• EDCTM00 - Dutch Month-Ahead coal switching price 45% efficiency Eur/MWh• EDUTM00 - Dutch Month-Ahead coal switching price 50% efficiency Eur/MWh• EDCTQ00 - Dutch Quarter-Ahead coal switching price 45% efficiency Eur/MWh• EDUTQ00 - Dutch Quarter-Ahead coal switching price 50% efficiency Eur/MWh• EDCTY00 - Dutch Year-Ahead coal switching price 45% efficiency Eur/MWh• EDUTY00 - Dutch Year-Ahead coal switching price 50% efficiency Eur/MWh• EUCTM00 - UK Month-Ahead coal switching price 45% efficiency Eur/MWh• EUCVM00 - UK Month-Ahead coal switching price 45% efficiency p/th• EUKTM00 - UK Month-Ahead coal switching price 50% efficiency Eur/MWh• EUKVM00 - UK Month-Ahead coal switching price 50% efficiency p/th• EUCTQ00 - UK Quarter-Ahead coal switching price 45% efficiency Eur/MWh• EUCVQ00 - UK Quarter-Ahead coal switching price 45% efficiency p/th• EUKTQ00 - UK Quarter-Ahead coal switching price 50% efficiency Eur/MWh• EUKVQ00 - UK Quarter-Ahead coal switching price 50% efficiency p/th• EUCTY00 - UK Year-Ahead coal switching price 45% efficiency Eur/MWh• EUCVY00 - UK Year-Ahead coal switching price 45% efficiency p/th• EUKTY00 - UK Year-Ahead coal switching price 50% efficiency Eur/MWh• EUKVY00 - UK Year-Ahead coal switching price 50% efficiency p/th


ZEMA collects many Platts natural gas records and over 100 coal records. To gain more informed insight regarding Platts’s CSPIs, view ZEMA’s Platts records and coal records. To learn more, visit http://www.ze.com/the-zema-solutions/.

Argus Renames Metallurgical Coal AssessmentOn June 24, 2014, Argus renamed the following metallurgical coal assessment in its Argus Steel Feedstocks publication and data module.


PA0010871Metallurgical Coal fob Colombia Caribbean Terminals mid-vol within 90 days

Metallurgical Coal fob Colombia mid-vol within 90 days




http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140624steel.pdf

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lsPlatts Proposes Chicago ITT Argo Any-Month Ethanol AssessmentOn September 3, 2014, Platts plans to introduce a Chicago ITT Argo any-month ethanol assessment for both the first and second month.

This Chicago ITT Argo any-month ethanol assessment will reflect cargo volumes of a minimum of 5,000 barrels for loading and unloading on an ITT Argo basis at the Kinder Morgan Argo terminal in Chicago, Illinois, conforming to ASTM spec D4806 for denatured fuel ethanol.

Other Chicago-area terminals may be considered for the assessment but normalized for freight.

The assessment will consist of both current any-month and next forward month timing. The assessment will roll over to the next month on the first day of the forward month.

Platts claims that this proposal is the result of an increase in trading activity for any-month cargoes in the Chicago ITT Argo ethanol market.


ZEMA collects numerous records related to biofuels freight and ethanol assessments. To learn more about the solution’s vast data library, visit http://www.ze.com/the-zema-solutions/data-coverage/.

Platts to Launch CIF NWE Industrial Wood Pellet AssessmentOn August 15, 2014, Platts will launch a weekly spot market price assessment for industrial wood pellets delivered to Northwest Europe with a net calorific value of 17 GJ/metric ton. The new assessment will be published in Coal Trader International, European Power Daily, and Power in Europe.

Platts intends to reflect the value of typical shipments of pellets delivered CIF Northwest Europe published weekly. Prices will be assessed on a market on close basis at 5 p.m. London every Friday or, in the event of a public holiday, on the nearest preceding business day.

Industrial I2 wood pellets with the following specifications will be included in the assessment process:

• A standard calorific value of 17 GJ/mt on a net-as-received basis with typical sulfur content of 0.1% as received and typical ash of 1% as received from any origin.

The assessment will reflect the price in $/metric ton of wood pellets for delivery 7-45 days forward from the date of publication and will roll forward each week. The new symbol is “IWPNW00 - Industrial wood pellets CIF NW Europe 17 GJ/metric ton.”

Effective Friday, August 15, 2014, Platts will also publish weekly U.K. wood pellet spreads, which are indicative prices giving the average difference between the cost of wood pellets and the equivalent price of U.K. electricity on any given day at fuel efficiencies of 30%, 35%, and 40%.

The pellet spreads are based on CIF Northwest Europe 45-day wood pellet assessments, the equivalent prompt U.K. power assessment, and the U.K. Levy Exemption Certificate (LEC) and Renewable Obligation Certificate (ROC) subsidy bandings for biomass power generation.


ZEMA makes it easy for energy and commodity market participants to chart the impact that wood pellet price fluctuations have upon other industries. ZEMA’s customizable dashboards allow users to display multiple forward curves and raw data feeds alongside one another for an enhanced market perspective. To learn more, book a complimentary ZEMO demo at http://www.ze.com/book-a-demo/.





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lsArgus Adds Ammonium Sulphate and Urea Assessments to Fertilizer PublicationOn June 26, 2014, Argus added new assessments to its Argus FMB North American Fertilizer publication and data module. Assessments were added to the DFNA module in the DFNA folder of server ftp.argusmedia.com.


PA0014155 0 8 0 Urea granular bulk fob New Orleans VWA

PA0014249 0 1 0 Ammonium sulphate bulk fot Corn Belt




ZEMA already collects data records from Argus regarding agricultural products. To gain a wider perspective of the agricultural market, visit http://www.ze.com/the-zema-solutions/ for further information on how ZEMA can enhance your business processes.

COMEX Lists New Gold, Silver, and Copper Weekly Options on CME ClearPortOn trade date August 11, 2014, the Commodity Exchange, Inc. (COMEX) will list gold, silver, and copper weekly option contracts for submission for clearing on CME ClearPort. The option contracts listed below are currently available for trade on the COMEX trading floor and CME Globex.


Gold Weekly Option OG1-OG5 1008

Silver Weekly Option SO1-SO5 1009

Copper Weekly Option H1E-H5E 1010


ZEMA collects 75 metal records, many of which contain options data. ZEMA can easily collect COMEX gold, silver, and copper data. To learn more about ZEMA’s data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.

LBMA Silver Price Solution to Be Determined by CME Group and Thomson ReutersOn July 11, 2014, the LBMA announced that CME Group and Thomson Reuters have been selected to provide a solution for the London silver price mechanism.

This decision was reached during the LBMA’s market consultation, which involved two market surveys, a seminar, and numerous meetings with market participants, solution providers, and regulators. The second survey indicated a clear market consensus for the CME Group and Thomson Reuters proposal.

In terms of the division of responsibilities, CME Group will provide the price platform and methodology and Thomson Reuters will provide the administration and governance. The LBMA will develop a process of accreditation for silver price participants. The LBMA will work closely with the CME Group and Thomson Reuters to prepare the London silver price mechanism for testing in early August.


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140626fna.pdf




http://www.lbma.org.uk/_blog/lbma_media_centre/post/silverpricesolution/

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lsPlatts Discontinues Tubular Market Report Data FileOn January 1, 2015, Platts will discontinue its monthly North American pipe and tube markets data publication, Platts Tubular Market Report. The publication is being discontinued due to the fact that other Platts publications and data reports will be reconfigured to provide subscribers with similar information.

As an alternative, subscribers can receive pipe and tube market data in the Platts Steel Data and Analysis product. Specifically, this data is included in the Imports 1-4 and Exports 1-3 reports. In addition, pipe and tube data is included in the trend analyzer, also part of a Steel Data and Analysis subscription.


Platts to Discontinue Quarterly Iron Ore Lump Contract PriceFollowing industry feedback, Platts will discontinue its quarterly Australia lump premium contract price (IOPLC00) by September 30, 2014.

Platts will do so because it claims most lump term contracts between Chinese mills and Australian iron ore producers have shifted to being priced based on the average of the Platts spot lump premium (IOCLP00), rather than negotiated on a quarterly basis.

Should the discontinuation be finalized after industry consultation, Q2 2014 will be the final quarter for which a value for IOPLC00 is published.


Platts to Cease Publishing London Silver FixOn Thursday, August 14, 2014, the London Silver Fix pricing process will cease to exist in its current form. The London Bullion Market Association is in the process of considering a replacement for daily silver pricing to run without interruption.

Platts currently publishes the London Silver Fix in both cents/oz and pence/oz, as well as weekly and monthly averages of the daily fixes, in Platts Metals Alert, Platts Metals Daily, and the Metals Week supplement to Metals Daily.

Platts noted that its subscribers should be aware that due to the LBMA changes, there could be an interruption in publication of the silver fix data, or Platts may not be able to publish them going forward.

If this should occur, the last publication of the daily fix will be on August 13, 2014, the last weekly average will publish on August 8, 2014, and the last monthly average--for July 2014--will publish on July 31.


Platts and Kingsman to Enhance Weekly Global Ethanol ReportOn August 19, 2014, Platts and Kingsman will introduce a series of changes to the weekly global ethanol report in order to provide greater insight into current market trends and price activity. This includes the addition of further Platts price assessments and other price indicators to the report. As part of this change, a number of price assessments and price indicators will either be replaced or discontinued from the report. Below is a list of all data affected.

Data to be included in the report:• Northern and Southern California prompt (7-14 days

forward delivery) ethanol price assessments in cts/gal• Chicago ethanol front-month swap price assessment

in cts/gal• Rotterdam T2 ethanol front-month swap price

assessment in Eur/cu m• D4 RIN price assessments for both previous and

current year compliance period • CIF Philippines ethanol price assessment in $/cu m• Ex-mill Ribeirao Preto hydrous ethanol expressed as

raw sugar equivalent in cts/lb• European milling wheat and corn future contract

settlements in Eur/mt




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lsMoreover, Platts and Kingsman will add two decimal points to the calculated hydrous ethanol-gasoline parity in Brazil.

Data to be excluded from the report:• Rotterdam T2 ethanol price conversion to Eur/mt from Eur/cu m• FOB Santos anhydrous EU-quality ethanol price assessment in $/cu m• CBOT ethanol future contracts in cts/gal• Third and fourth month settlements for Brazil’s BM&F hydrous ethanol future contracts

All these changes will only affect data displayed on the price table on page 1 of the report.


Platts Updates Dry Bulk Freight AssessmentsOn July 16, 2014, following the launch of Dry Freight Wire on June 25, Platts announced that it has updated certain assessments.

Platts has decided to continue reviewing the potential for Handysize and Panamax dry bulk freight assessments for bauxite moving from Australia to the United Arab Emirates and China.

Platts has also amended the price database code reflecting its assessment for dry bulk freight associated with alumina moving from Australia to China. Details of the new code are contained in the table below.

MDC Old Code New Code Assessment

MM MMASL00 MMACH00 Alumina Bunbury/Kwinana-Lianyungang 30kt Handysize

The following proposed assessments remain under review:

MDC Code Assessment

MM MMANJ00 Bauxite Gove N Australia-Jebel Ali 30kt Handysize

MM MMAGJ00 Bauxite Gove N Australia-Jebel Ali 60kt Panamax

MM MMANL00 Bauxite Gove N Australia-Lianyungang China 30kt Handysize

MM MMAGP00 Bauxite Gove N Australia-Lianyungang China 60kt Panamax $/mt


Platts to Change London Silver Fix to PriceOn July 15, 2014, Platts announced that it will change the daily London Silver Fix to the London Silver Price in all publications.

On August 14, 2014, the London Silver Fixing Company will administer and publish the London Silver Fix for the last time. From August 15, 2014, the Chicago Mercantile Exchange (CME) and Thompson Reuters plan to administer and publish a daily reference price reflecting the supply and demand balance for silver bullion, location London, which will be referred to as the London Silver Price. The London Bullion Members Association (LBMA) has approved the planned new price, and the International Swaps & Derivative Association (ISDA) will recognize the planned new price as an alternative to the Silver Fix in contracts that reference the Silver Fix.

At the same time, Platts is also proposing to change publishing the daily value for silver bullion in cents/troy ounce to U.S. dollars/troy ounce.





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CME: Weekly Options on Foreign Exchange Futures to Be Cleared by CME ClearPortOn September 8, 2014, the Chicago Mercantile Exchange (CME) will make several option contracts available for submission for clearing on CME ClearPort. These products include European-style weekly options on six major foreign exchange futures contracts. These option contracts are currently listed for trading on the CME trading floor and CME Globex.

• Options on Australian Dollar/U.S. Dollar (AUD/USD) futures, European, weekly: CME Globex Electronic Markets: XA1-XA5; Open Outcry: AD1 - AD5; AON Code: AAD (Rulebook Chapter 255A)

• Options on Canadian Dollar/U.S. Dollar (CAD/USD) futures, European, weekly: CME Globex Electronic Markets: XD1-XD5; Open Outcry: 1D - 5D; AON Code: 0K (Rulebook Chapter 252A)

• Options on British Pound Sterling/U.S. Dollar (GBP/USD) futures, European, weekly: CME Globex Electronic Markets: XB1-XB5; Open Outcry: 1P-5P; AON Code: 0P (Rulebook Chapter 251A)

• Options on Euro/U.S. Dollar (EUR/USD) futures, European, weekly: CME Globex Electronic Markets: 1Q-5Q; Open Outcry: 1T-5T; AON Code: 0T (Rulebook Chapter 261A)

• Options on Japanese Yen/U.S. Dollar (JPY/USD) futures, European, weekly: CME Globex Electronic Markets: 1O-5O; Open Outcry: 1Y-5Y; AON Code: 0J (Rulebook Chapter 253A)

• Options on Swiss Franc/U.S. Dollar (CHF/USD) futures, European, weekly: CME Globex Electronic Markets: XS1-XS5; Open Outcry: 1W-5W; AON Code: 0G (Rulebook Chapter 254A)


The ZEMA graph below plots the foreign exchange rate of AUD/USD. ZEMA is able to apply technical indicators such as the Bollinger Band and trend line analyses to market data, both of which are commonly used by traders.

To view up-to-date equities data alongside new updates, use ZEMA, ZE’s data management solution. To learn more, visit http://www.ze.com/the-zema-solutions/.


http://www.cmegroup.com/tools-information/lookups/advisories/ser/SER-7132.html


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Thomson Reuters Provides Currency Benchmarks for Kenya, Ghana, and ZambiaOn July 22, 2014, Thomson Reuters announced that it has won a competitive process to provide currency benchmarks for three of Africa’s most vibrant and dynamic economies – Kenya, Ghana, and Zambia.

Thomson Reuters Benchmark Services Ltd. began providing currency benchmarks for the Kenyan shilling, Ghanaian cedi, and Zambian kwacha soon after July 22, beginning a process which will see the benchmarks move from a manual telephone-based system to an automated analysis, ensuring the integrity and transparency of the rates.

There now follows a three stage transition process to reduce the reliance on manual reporting. The first stage is the transition to Thomson Reuters, with no immediate alteration to the current manual, quote-driven methodology in which calculators gather quotes from market participants. This will be done on a Thomson Reuters platform, which will provide a fully-auditable record of submissions. The second stage begins in August with automated collection of data from the 10 most active contributors to the rates and semi- automated submissions from others. Thomson Reuters will then launch an open consultation on the possible use of transaction data in a subsequent phase.

The currencies can be found on the flagship desktop Thomson Reuters Eikon using its plain language smart search function or using the following currency codes: <AFRICAFIX=TR>, <GHSFIX=TR>, <KESFIX=TR>, and <ZMWFIX=TR>.


To view updates from the African financial market next to other data, use ZEMA, ZE’s comprehensive data management tool for financial market participants. ZEMA enables users to easily visualize data, news, and ana-lytics in one screen, ensuring that users gain a global market snapshot. To learn more, visit http://www.ze.com/the-zema-suite/dashboard/.

Thomson Reuters Acquires UBS Convertible IndicesOn July 1, 2014, Thomson Reuters announced that it has completed its acquisition of the UBS Convertible Indices, a widely used benchmark in the convertible bond market. The UBS Convertible Indices have been renamed the Thomson Reuters Convertible Indices and integrated with existing Thomson Reuters products and services for the convertible bond market and its suite of indices. The indices are operated in light of the International Organization of Securities Commissions (IOSCO) principles for financial benchmarks which came into effect in July 2014.

The Thomson Reuters Convertible Indices continue to measure the performance of the convertible bond asset class and operate under the same core methodology. The Thomson Reuters Convertible Indices are available through Thomson Reuters Eikon, Elektron, and other data feeds.


S&P/TSX 60 ESG Index Launched by S&P Dow Jones Indices, RobescoSAM, and TSXOn June 16, 2014, S&P Dow Jones Indices, RobecoSAM, and Toronto Stock Exchange (TSX) announced the launch of the S&P/TSX 60 ESG (Environment, Social, and Governance) index. The index is designed to track the performance of the constituent companies of the S&P/TSX 60, Canada’s leading equity benchmark, while taking into account each company’s sustainability performance relative to the corresponding industry-specific standards.

The S&P/TSX 60 ESG index is designed for market participants who currently use the S&P/TSX 60 and are looking to deepen the scope of their stock analysis to include sustainability criteria. The construction methodology is based on the S&P/TSX 60, while companies’ sustainability profiles are evaluated using the RobecoSAM Corporate Sustainability Assessment (CSA). Companies are then re-weighted according to their sustainability score, meaning those with a higher score are weighted higher in the S&P/TSX 60 ESG index than in the S&P/TSX 60.


http://thomsonreuters.com/press-releases/072014/thomson-reuters-calculates-benchmarks-for-three-of-africas-most-dynamic-economies

http://www.ze.com/the-zema-suite/dashboard/

http://thomsonreuters.com/press-releases/072014/thomson-reuters-acquires-ubs-convertible-indices

http://www.tmx.com/en/news_events/news/news_releases/2014/06-16-2014_TMXGroup-60-ESG-Index.html

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Eurex to Launch Variance Futures Based on EURO STOXX 50On September 22, 2014, Eurex will extend its product range by introducing a listed variance future based on the EURO STOXX 50, the most prominent equity index in Europe.

Variance futures replicate the pay-off profile of a variance swap using a daily-margined futures contract. Instead of a final settlement payment upon expiry, the pay-off profile of a variance swap is calculated as the sum of all variation margin payments through the period the variance futures contract is held. Variance futures are standardized instruments that are fully fungible and can be traded in a central order book.

Eurex has developed the new product in collaboration with DRW Innovations, which owns the U.S. patent on the variance futures methodology. Eurex and DRW have reached an agreement that will allow Eurex to use this patent-protected methodology to offer variance futures on the EURO STOXX 50.

Variance futures will be traded on exchange in terms of notional vega at volatility strikes. Upon matching, notional vega and volatility strikes will be converted into variance futures at variance futures prices, according to Eurex. The conversion formulae and parameters will be published.

The minimum order size will be 1 notional Vega and minimum price change will be 0.05 volatility points.


ETF Securities Lists New ETNs on XetraOn July 14, 2014, five ETNs on currency baskets from the ETF Securities product offering became tradable in Xetra. The new ETNs track the performance of four tactical and one strategic currency basket.

The first tactical currency basket--offered as either long or short–is a Morgan Stanley index which tracks the performance of the euro against G10 currencies.

• ETFS Bullish EUR vs. G10 Currency Basket Securities (DE000A12Z3R4)

• ETFS Bearish EUR vs. G10 Currency Basket Securities (DE000A12Z3Q6)

The second tactical currency basket, which is also offered as long or short, is a Morgan Stanley index which tracks the performance of currencies whose countries

heavily depend on the export of commodities. The basket contains the Australian dollar, New Zealand dollar, Norwegian krone, and the Canadian dollar. These four currencies are generally known as commodity currencies.

• ETFS Bullish USD vs. Commodity Currency Basket Securities (DE000A12Z3T0)

• ETFS Bearish USD vs. Commodity Currency Basket Securities (DE000A12Z3S2)

The strategic currency basket is based on four separate strategy components that track different investment themes within the currency sector. This is also a Morgan Stanley index which identifies and realizes yield opportunities for G10 currencies against the U.S. dollar.

• ETFS G10 vs. Multi Strategy FX Basket Security (DE000A12Z3U8)


Collect all currency-related data in ZEMA, ZE’s data management solution for financial market participants. ZEMA collects, standardizes, and validates data in any granularity, from any source, as soon as it becomes available. To learn more, visit http://www.ze.com/the-zema-solutions/.

ETF Securities Lists Range of Currency ETVs on Euronext On July 2, 2014, ETF Securities listed a range of currency exchange traded vehicles (ETVs) on Euronext Amsterdam. These are the first ETVs on Euronext that give exposure to currency pairs. These new products allow investors to capitalize on an increase or decrease of the Japanese yen without any leverage, or to anticipate on an increase or decrease of the Japanese yen or U.S. dollar with a leverage factor of three. Leveraged ETVs enable investors to trade on a short-term basis with a competitive total cost of ownership.

ETVs provide investors with exposure to underlying assets such as futures contracts, commodities, and currencies without actually trading futures or ever taking physical delivery of the underlying assets.


ZEMA collects over 300 financial market records. To learn more about ZEMA’s vast data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=91287041C88D954EC1257D12002CD5DA&newstitle=eurextolaunchvariancefuturesba&location=press

http://www.boerse-frankfurt.de/en/etc_etn/etns/etfs+bullish+eur+vs+g10+currency+basket+securities+DE000A12Z3R4

http://www.boerse-frankfurt.de/en/etc_etn/etns/etfs+bearish+eur+vs+g10+currency+basket+securities+etn+DE000A12Z3Q6

http://www.boerse-frankfurt.de/en/etc_etn/etns/etfs+bullish+usd+vs+commodity+currency+basket+securities+DE000A12Z3T0

http://www.boerse-frankfurt.de/en/etc_etn/etns/etfs+bearish+usd+vs+commodity+currency+basket+securities+etn+DE000A12Z3S2

http://www.boerse-frankfurt.de/en/etc_etn/etns/etfs+g10+vs+usd+multi+strategy+fx+basket+security+DE000A12Z3U8

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=F1CBF7100CE15B4EC1257D1500490658&newstitle=fivenewetnsfrometfsecuritiesla&location=press


https://www.euronext.com/en/news/etf-securities-lists-range-currency-etvs-euronext


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Two New SPDR ETFs Launched on XetraOn July 1, 2014, two new equity index funds from the ETF offering issued by SPDR (State Street Global Advisors) became tradable in the XTF segment of Xetra.

ETF Name Asset Class ISINTotal Expense Ratio

Distribution Policy

Benchmark

SPDR Russell 3000 U.S. Total Market UCITS ETF

Equity index ETF IE00BKY7WX37 0.25% Non-distributingRussell 3000 Index

SPDR Russell 2000 U.S. Small Cap UCITS ETF

Equity index ETF IE00BJ38QD84 0.30% Non-distributingRussell 2000 Index

The SPDR Russell 3000 U.S. Total Market UCITS ETF offers investors access to the U.S. equities market. The reference index comprises around 3,000 U.S. small, mid, and large-caps, thus covering around 98% of the total U.S. equities market.

The SPDR Russell 2000 U.S. Small Cap UCITS ETF is based on U.S. small caps. With around 2,000 small cap companies, the reference index tracks around 8% of the U.S. equities market.


New UBS ETFs Introduced on XetraOn June 30, 2014, two new exchange-listed equity index funds from the issuer UBS Global Asset Management became tradable in the XTF segment of Xetra.


Distribution Policy

Benchmark

UBS ETF – FTSE 250 UCITS ETF (GBP) A-dis

Equity index ETF LU1048312737 0.25% DistributingFTSE 250 Total Return

UBS ETF – MSCI Europe ex UK UCITS ETF (EUR) A-dis

Equity index ETF LU1048312067 0.20% DistributingMSCI Europe ex UK Total Return Net

The UBS ETF – FTSE 250 UCITS ETF enables investors to participate in the performance of 250 SMEs accounting for 15% of market capitalization in the U.K. These companies follow the FTSE 100 in terms of market capitalization.

The UBS ETF – MSCI Europe ex UK UCITS ETF provides investors with access to the performance of stock corporations from Europe’s developed economies, excluding the U.K. The reference index currently comprises over 327 securities, which make up around 85% of the market capitalization of the 14 industrialized European countries included.


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

http://www.boerse-frankfurt.de/en/fonds/spdr+russell+3000+u+s+total+market+ucits+etf+fonds+IE00BKY7WX37

http://www.boerse-frankfurt.de/en/etfs/spdr+russell+2000+u+s+small+cap+ucits+etf+etf+IE00BJ38QD84

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=DB7D966C2F44D0D7C1257D08004548A3&newstitle=twonewspdretfslaunchedonxetra&location=press

http://www.boerse-frankfurt.de/en/etfs/ubs+etf+ftse+250+ucits+etf+gbp+a+dis+etf+LU1048312737

http://www.boerse-frankfurt.de/en/etfs/ubs+etf+msci+europe+ex+uk+ucits+etf+eur+a+dis+etf+LU1048312067

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=65CDAA1E359CE068C1257D070033DA39&newstitle=twonewubsetfslaunchedonxetra&location=press


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Lyxor UCITS ETF German Mid-Cap MDAX Launched on XetraOn June 19, 2014, a new exchange-traded equity index fund issued by Lyxor Asset Management became tradable in the XTF segment of Xetra.


Distribution Policy

Benchmark

Lyxor UCITS ETF German Mid-Cap MDAX

Equity index ETF FR0011857234 0.40% Distributing MDAX Index

Lyxor UCITS ETF German Mid-Cap MDAX enables investors to participate in the performance of the MDAX. The reference index contains 50 medium-sized German companies, as well as foreign companies operating primarily in Germany from traditional industrial sectors. It includes the companies that rank below the 30 companies included in the DAX index on the basis of market capitalization and trading volume.


ZEMA, ZE’s data management solution, 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 further information, visit http://www.ze.com/the-zema-suite/.

Euronext Introduces Weekly Expiry Dates on CAC40 and AEX FuturesOn July 16, 2014, Euronext announced that in the fourth quarter of 2014, it will launch weekly expiry dates on its CAC40 and AEX futures contracts.

Euronext will introduce these dates as a response to its clients, many of whom are looking for shorter expiry solutions and are not currently able to trade efficiently in the market.

Euronext claims that its new weekly expiry dates will provide members with more trading possibilities, an opportunity for improved risk management, and a hedging tool during the dividend season or when trading AEX weekly options.

With effect from early 2015, Euronext will also complement its short maturities offering by launching weekly expiry dates on exchange for physicals available on both CAC and AEX futures.


Markit to Launch Electronic Service for FX OptionsOn July 2, 2014, Markit announced the development of a new service for electronic trade confirmation and exercise management for the FX options market. The service will be deployed by MarkitSERV, Markit’s trade processing service for the OTC derivatives industry.

Markit noted that this new service will help improve front and back office processes, providing:

• Centralized generation of legal trade confirmations.• Straight-through-processing (STP) of exercise actions.• Real-time communication of exercise actions via an audited platform.• Management of other lifecycle events based on a confirmed matched trade population.

Markit intends to expand the service to provide legal confirmation for non-deliverable forwards (NDFs). Doing so will complement its existing MarkitSERV clearing middleware service for NDFs.


http://www.boerse-frankfurt.de/en/etfs/lyxor+ucits+etf+german+mid+cap+mdax+FR0011857234

http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/press/10_Latest_Press_Releases/10_All/INTEGRATE/mr_pressreleases?notesDoc=FC80585DD2B4B4DDC1257CFD00272D05&newstitle=lyxorucitsetfgermanmid-capmdax&location=press


https://www.euronext.com/en/news/euronext-launches-weekly-expiry-dates-cac40-and-aex-futures

http://www.markit.com/Company/Media-Centre

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Barchart Mobile Application UpgradedOn July 22, 2014, Barchart.com, Inc. announced upgrades to the free companion application for its financial website, www.barchart.com. Available for iOS and Android devices, the Barchart.com mobile application provides comprehensive financial data for U.S. and Canadian stocks and indices, futures, and Forex markets. In addition to standard charting and data, the application possesses analyses and information, company income statements, related stock options, headlines and news, and company performance reports.

In addition to providing access to real-time BATS quotes, charts, technical analyses, fundamentals, news, and options, Barchart.com helps users access their saved portfolios, charts, and local weather. To maximize user experience, Barchart has recently added the following upgrades:

• Multiple watchlists: Enable users to track all types of symbols regardless of market on a single screen.

• Stock screener: This feature filters through thousands of symbols based on 70 different criteria.

• Opinion sources: These are located on one page with buy/sell indicators.

• Futures heatmap: A functionality that provides insight into the market’s direction.

• Performance reports: These exist for each symbol.

• European Futures: Futures include ICE, Eurex, and Euronext.

• Forex major markets page: This is easily accessible and has overviews.

The Barchart mobile app can be downloaded on the App Store or on Google Play.


ZEMA presently collects over 60 records from Barchart. To learn about how to leverage ZEMA’s power to collect, aggregate, and transform Barchart equity options data, visit http://www.ze.com/the-zema-solutions/.

Bahrain Bourse Introduces New Trading Engine Powered by NASDAQ OMXOn July 21, 2014, Bahrain Bourse and NASDAQ OMX announced that Bahrain Bourse has launched its new trading engine, which is powered by NASDAQ OMX’s X-stream trading platform. The project went live on July 14, providing Bahrain Bourse with a widely deployed, multi-asset trading platform.

The new platform will enable Bahrain Bourse to enhance trading options for investors and a variety of market participants, as well as create products and services to match international demand. In addition to the new X-stream technology, the exchange will also continue to leverage the existing CSD technologies that have been provided and supported by NASDAQ OMX since 2000.


TOCOM Deemed a Recognized Market Operator by Monetary Authority of SingaporeOn July 1, 2014, the Monetary Authority of Singapore (MAS) granted the Tokyo Commodity Exchange, Inc. (TOCOM) with “Recognized Market Operator” (RMO) status. This status permits TOCOM to offer Singapore-based market participants with direct market access. TOCOM noted that this status helps the organization enhance market accessibility for overseas market participants.


http://www.barchart.com/

http://www.barchart.com/about/news/22Jul2014.shtml


http://www.nasdaqomx.com/newsroom/pressreleases/pressrelease?messageId=1284350&displayLanguage=en

http://www.tocom.or.jp/news/2014/20140704MAS.html

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Thomson Reuters Increases OTC Data Coverage through Partnership with BGC PartnersOn July 23, 2014, Thomson Reuters and BGC Partners, Inc. announced a strategic agreement to expand customer access to OTC pricing data. BGC’s OTC pricing data is now available to customers of Thomson Reuters Eikon, Thomson Reuters Elektron Real Time, Tick History, and DataScope Select, as well as BGC’s trading system. The agreement incorporates a consolidated licensing solution aligned to individual clients’ business models.

Thomson Reuters Eikon and Elektron customers now have access to a wide range of OTC pricing data. This dataset covers a large number of asset classes and instruments, including:

• Global fixed income• Global interest rate swaps and options, covering developed and emerging markets and global credit

derivative markets• Global foreign exchange, including non-deliverable forwards (NDFs) and foreign exchange options (FXOs)


Eurex Renames Products in Light of Changes to Calculation of Dow Jones-UBS Commodity IndexesOn July 1, 2014, the Dow Jones-UBS commodity indexes previously calculated by S&P Dow Jones began to be calculated by Bloomberg. As a result, on July 21, 2014, Eurex Exchange renamed several products to reflect this change. Renamed products are located in T7, Eurex’s trading architecture; product codes and overall parameters remained unchanged.

To view a circular containing a complete list of affected indexes, see the original announcement.

CME Changes Name for Commodity Index Futures and SwapsOn July 1, 2014, CME changed the name for the products listed below. These products are also listed on CME Globex and are available for submission for clearing on CME ClearPort.

Code Clearing/Globex Current Product Name New Product Name

AW/70 Dow Jones-UBS Commodity Index Futures Bloomberg Commodity Index Futures

DGS/DGSDow Jones-UBS Commodity Index Swaps (Cleared OTC)

Bloomberg Commodity Index Swaps (Cleared OTC)

DG2/DG2Dow Jones-UBS Commodity Index 2-Month Forward Index Swap

Bloomberg Commodity Index 2-Month Forward Swaps (Cleared OTC)

DG3/DG3Dow Jones-UBS Commodity Index 3-Month Forward Index Swap

Bloomberg Commodity Index 3-Month Forward Swaps (Cleared OTC)

DRS/DRS Dow Jones-UBS Roll Select Commodity Index FuturesBloomberg Roll Select Commodity Index Futures


http://financial.thomsonreuters.com/en/products/tools-applications/trading-investment-tools/eikon-trading-software.html

http://financial.thomsonreuters.com/en/products/infrastructure/trading-infrastructure/elektron-financial-applications.html

http://thomsonreuters.com/tick-history/

http://thomsonreuters.com/datascope-select/

http://thomsonreuters.com/press-releases/072014/thomson-reuters-increases-otc-data-coverage

http://www.eurexgroup.com/group-en/newsroom/circulars/983120/

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/Chadv14-260.html

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sArgus: Data Code Frequency Change for Low-Carbon Fuel Standard Credits Prompt Assessments On August 1, 2014, Argus changed the data code frequency for several assessments in its Argus Air Daily, Argus US Products, and Argus Americas Biofuels publications. Frequencies changed from weekly to daily.

Data was updated in the dusem.csv files in the DADR folder; the dhp.csv files in the DUSPR folder; and the duse.csv files in the DUSEthanol folder of server ftp.argusmedia.com:


PA0010766 21 1 0 Low-carbon fuel standard credits prompt

PA0010766 21 2 0 Low-carbon fuel standard credits prompt

PA0010766 21 8 0 Low-carbon fuel standards credit prompt


http://web04.us.argusmedia.com/ArgusStaticContent/Resources/data/announcements/pdf/20140801adr.pdf


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Bloomberg Takes Control of Dow Jones-UBS Commodity IndexOn July 1, 2014, Bloomberg took over UBS’s leading commodity index, the Dow Jones-UBS Com-modity Index, which is a diversified index that provides investors with exposure to the most widely followed commodities in the world. The index was renamed the “Bloomberg Commodity Index.”

To learn more, see the original announcement.

To keep track of how market changes like Bloomberg’s takeover of the Dow Jones-UBS Commodity Index will impact data, use ZEMA, ZE’s data management solution for commodity market participants. ZEMA feeds downstream systems with data from all of the sources users require. Analytics in downstream systems are automatically updated as soon as data becomes available. To learn more, book a complimentary demo at http://www.ze.com/book-a-demo/.

Bloomberg Vault Introduces File Analytics ProductOn June 24, 2014, Bloomberg’s enterprise information management service, Bloomberg Vault, announced the release of its File Analytics product. This hybrid-cloud service enables firms to locate, manage and unlock the potential of discoverable information held in corporate files and documents.

Bloomberg Vault File Analytics helps enterprises manage “dark data,” which Bloomberg defines as unstructured data that is difficult to identify, categorize, track, and manage.


ZEMA excels at collecting data from a wide range of sources. Further, its open architecture enables easy integration with an organization’s internal systems and downstream systems. Find out how ZEMA can make big data management easier and faster by visiting http://www.ze.com/the-zema-solutions/.

NOAA Introduces New PORTS Real-Time Data System to Aid Maritime Shipping ProcessesOn July 23, 2014, officials from the U.S. National Oceanic and Atmospheric Administration (NOAA), the Jacksonville Marine Transportation Exchange, and the Jacksonville Port Authority officially dedicated a new information system today which will increase safety for ships using the St. Johns River. The system, called Physical Oceanographic Real-Time System (PORTS), provides real-time information on water levels, currents, meteorological conditions, and under-bridge clearance, giving users critical information when traveling through the river. The St. Johns River in Jacksonville will become the twenty-third location to use the system and is the second largest PORTS ever established.

Tailored to the specific requirements of each seaport, PORTS is a decision support tool that improves the safety and efficiency of maritime commerce and enhances coastal resilience and natural resource management through the integration of real-time environmental observations, forecasts, and other geospatial information. In addition to providing useful information for maritime transportation and coastal resilience, the use of the water temperature and tidal data can be used by the fishing industry to improve catch.


ZEMA, a data management solution for environmental market participants, collects many records which will further help those concerned with environmental and transportation issues. For further information about the records ZEMA collects, visit http://www.ze.com/the-zema-solutions/data-coverage/.

http://www.bloomberg.com/now/2014-06-23/expansion-vast-world-commodities/


http://www.bloomberg.com/now/press-releases/bloomberg-vault-expands-enterprise-information-management-capabilities-dark-data/


http://tidesandcurrents.noaa.gov/ports.html

http://tidesandcurrents.noaa.gov/ports.html

http://www.noaanews.noaa.gov/stories2014/20140723_jacksonvilleports.html



New Data Reports from ZEMAAt ZE, we are continuously working to expand our data coverage, as we provide our clients with data essential to their operations. Our highly flexible data parsers can collect information in any electronic format, from any source, and at a frequency clients need.

ZE has added several new data reports to ZEMA following the publication of our June issue of ZE DataWatch: Data Source Report Commodity SubscriptionAESO Pool Statement Electricity Yes

APX Power UK Daily Settlement Electricity Yes

CAISO CMRI Market Awards RTD Electricity Yes

CAISO CMRI Market Schedules DAM Electricity Yes

CAISO CMRI Market Schedules HASP Electricity Yes

CAISO CMRI Market Schedules RTD Electricity Yes

CAISO CMRI Schedule Prices RTD Electricity Yes

DWD Daily Weather Weather No

ERCOT Nodal AGG Output Electricity Yes

ERCOT Nodal AGG Output Electricity Yes

ERCOT Nodal CRR Balancing Account Invoices Electricity Yes

ERCOT Nodal CRR Output Electricity Yes

ERCOT Nodal DAI Output Electricity Yes

ERCOT Nodal DAM Output Electricity Yes

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ZE and Lacima Enter Partnership to Enhance Clients’ Data Analysis and IntegrationOn July 25, 2014, ZE PowerGroup Inc. (ZE) announced that it has entered a strategic alliance with Lacima Group (Lacima). ZE is the developer of a ZEMA, a data management solution for energy and commodity market participants. Lacima is a specialist provider of risk management, valuation, and optimization software and services for multi-commodity trading organizations.

ZE and Lacima’s alliance extends the technological integration capabilities of both organizations so that ZEMA’s extensive market datasets and analyses flow seamlessly into Lacima’s energy analytics system, Lacima Analytics. More specifically, ZEMA aggregates market data and transforms prices into Lacima’s “risk factors.” These risk factors can then be converted into Lacima-specific CSVs that are generated automatically on a daily basis and posted to a secure FTP site. File types that can be posted include spot prices, futures prices, and forecasts. Lacima then captures these files and imports them into its Risk Suite.

Similarly, analytic data available in Lacima Analytics can be accepted in ZEMA. Key analysis in Lacima Analytics, such as Mark to Market, VAR, Cash Flow at Risk, Margin at Risk, Sensitivity, Correlations, and Volatilities can be integrated and accessed through ZEMA.

By using a combined ZEMA and Lacima solution, clients will benefit from more accurate, timely data analysis and integration.


http://www.ze.com/ze-announces-strategic-alliance-with-lacima/

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Data Source Report Commodity SubscriptionERCOT Nodal LLS Output Electricity Yes

ERCOT Nodal MKT Input Electricity Yes

ERCOT Nodal RTM Output Electricity Yes

ERCOT Nodal RUC Output Electricity Yes

ERCOT Nodal Settlement Invoices Electricity Yes

ERCOT Nodal CRR Output Electricity Yes

ERCOT Nodal DAI Output Electricity Yes

ERCOT Nodal DAM Output Electricity Yes

ERCOT Nodal DAM Shift Factors Electricity Yes

ERCOT Nodal DAM De-Energized Settlement Points in Base Case Electricity No

ERCOT Nodal Day Ahead Market Settlement Statements Electricity Yes

ERCOT Nodal LLS Output Electricity Yes

ERCOT Nodal MKT Input Electricity Yes

ERCOT Nodal NSA Active Constraints Electricity Yes

ERCOT Nodal NSA Inactive Constraints Electricity Yes

ERCOT Nodal RTD Indicative Total Available Reserves and Price Adders (ORDC) Electricity No

ERCOT Nodal RTM Output Electricity Yes

ERCOT Nodal RUC Output Electricity Yes

ERCOT Nodal Real Time Market Settlement Statements (5 min) Electricity Yes

ERCOT Nodal Real Time Market Settlement Statements (Hourly) Electricity Yes

KNMI Daily Weather Weather No

KNMI Hourly Weather Weather No

MISO CROW Outage Request Index Electricity Yes

Markedskraft Allocated Implicit Exchange Electricity Yes

Markedskraft Available Implicit Exchange Capacity Electricity Yes

Markedskraft CHP Hourly Actual Electricity Yes

Markedskraft Commerical Exchange Hourly Actual Electricity Yes

Markedskraft Exchange Capacity NTC Hourly Actual Electricity Yes

Markedskraft Historical Day-Ahead Forecasts (Power) Electricity Yes

NEISO Data Sheet - CROW Outage Request Index Electricity Yes

NEISO Day Ahead Energy Market Locational Settlement - Customer Electricity Yes

NEISO Day Ahead Energy Market Locational Settlement - Subaccount Electricity Yes

OPA Curtailment Payment Settlement Statement Electricity Yes

PJM eDART Generator Facility Outages Electricity Yes

SPP Credit Limit Information Electricity Yes

SPP Data Sheet - CROW Outage Request Index Electricity Yes

SPP Permanent Flowgates Electricity No

SPP IMM Area Control Error Electricity Yes

SPP IMT ARR Allocations Electricity Yes

SPP IMT ARR Auction Bids and Offers Electricity Yes

Tennessee Gas Pipeline

Operationally Available Capacity Gas No

Trianel Forecast - Historical Electricity Yes

Tullett Prebon LNG EOD Report - Futures Fuel Yes

Tullett Prebon LNG EOD Report - Spot Fuel Yes

Tullett Prebon Natural Gas - Daily Closing Price Gas Yes

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Argus Welcomes Ofgem Support for Extending IOSCO PRA PrinciplesLondon, July 8, 2014: Global energy and commodity news and price reporting agency Argus welcomes today’s decision by UK gas and power markets regulator Ofgem to support the voluntary extension to gas and electricity benchmarks of the principles for oil price reporting devised by international regulators group Iosco in 2012.

Argus’ commitment to best practice in commodity price reporting is shown by its continuing compliance with Iosco’s PRA principles across all its commodity benchmarks.

The Iosco PRA principles were published in October 2012. They were endorsed by the G20 in November 2012. They cover governance, control, quality, integrity and conflict management in relation to commodity benchmark price assessments published by PRAs. One of the requirements is an annual external audit, which Argus has met under reviews by global accountancy group PwC.

Argus became the first PRA to successfully complete an external assurance review of its generating fuels and coking coal benchmarks in February this year, extending its application of the PRA principles beyond oil to encompass benchmarks in thermal coal, coking coal, natural gas and biomass.

“We were pleased to be the first PRA to successfully complete assurance reviews of our benchmark prices. We are furthering that commitment to the PRA principles by conducting another independent assurance review this summer,” Argus Media chairman and chief executive Adrian Binks said.

Argus completed an independent external assurance review of the policies and processes it uses in establishing price benchmarks in oil markets in October 2013.

“We strongly support extending the scope of the Iosco Oil PRA principles to price assessments for gas and electricity markets on a voluntary basis,” an open letter from Ofgem says today.

Ofgem’s support for extension of the PRA principles is an interim measure pending the outcome of a European

Commission proposal on benchmarks and Iosco’s consultation on extending the PRA principles.

Ofgem points out that the EU’s Remit legislation “will improve regulators’ visibility of the market and in turn the activities of the PRAs” as market participants will have to report details of their trading activity to EU regulator Acer. Remit came into effect in December 2011. It prohibits market abuse, including manipulation of benchmarks, in wholesale gas and electricity markets.

Ofgem’s open letter follows its call for evidence last year on price benchmarks produced by PRAs.

Argus’ description of its policies and procedures together with the full assurance review report are available at www.argusmedia.com/About-Argus/How-We-Work.

Argus methodologies are published at www.argusmedia.com/Methodology-and-Reference

The Iosco PRA principles are available at www.iosco.org/library/pubdocs/pdf/IOSCOPD391.pdf

Media Contacts: London Seana Lanigan +44 20 7780 4272 [email protected]

Propylene Expected to More Than Double its Output by 2017Houston, July 2, 2014: Propylene production is undergoing a dramatic shift, with the US expected to become a net exporter by 2017, according to a new study released by global energy news and price reporting organization Argus. The 2014 Argus DeWitt Propylene Annual provides an in-depth overview and analysis of the dynamic changes expected in the propylene market.

Rising production of propane from US shale formations, along with shifts to heavier feedstocks in the Middle East and lighter feeds in Europe are affecting propylene supply more than any other product. No product in the petrochemical chain is expected to undergo more changes in upstream sourcing, production and economics over the next few years than propylene.

US and Chinese producers in particular are investing heavily in propane dehydrogenation, or PDH, technology, which converts propane into propylene to fill the supply

http://www.argusmedia.com/About-Argus/How-We-Work

http://www.argusmedia.com/Methodology-and-Reference

http://www.argusmedia.com/Methodology-and-Reference

http://www.iosco.org/library/pubdocs/pdf/IOSCOPD391.pdf

http://www.iosco.org/library/pubdocs/pdf/IOSCOPD391.pdf


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gap caused by slower growth in ethylene cracker capacity and lighter cracker feedstocks output. Argus DeWitt expects global propylene demand to lag behind capacity growth, creating a global surplus, assuming all planned capacity is built. With propylene as the base for many everyday products such as plastics, automotive parts and synthetic fibers for clothing, this signals an important trend for many businesses.

“The propylene industry has gone from stagnation five years ago to continuous expansion for the foreseeable future,” Argus Media chairman and chief executive Adrian Binks said. “The 2014 Argus DeWitt Propylene Annual will be a valuable resource for those affected by the changing dynamics of the propylene market.”

Olefins, such as propylene, are the largest and most liquid petrochemicals markets in the world.

Argus, through its purchases of DeWitt and Jim Jordan & Associates (JJ&A), offers a full range of international petrochemical services. Argus DeWitt reports cover global trade and pricing for aromatics, olefins, butadiene, methanol, MTBE, hydrocarbon resins and other petrochemicals. Argus DeWitt publishes nearly 200 price references, which are widely used in index pricing and for analytical purposes. In addition to reports, Argus DeWitt provides consulting services and publishes multi-client studies.

Request more informationMedia Contacts:Houston Gabriela Alcocer +1 713 429 6308 [email protected]

Turkmenistan Chooses Argus as Energy Price Information SourceLondon, June 27, 2014: Turkmenistan has chosen global energy and commodity news and price reporting agency Argus as an official source of energy price information. The country’s exporters will now be able to use prices published by Argus in their export contracts for crude, petroleum products, LPG and petrochemicals.

Turkmen president Gurbanguly Berdymukhamedov has signed a government resolution to make Argus an officially recognised source of market pricing

information. This resolution took effect from 21 June.

Turkmenistan is a major regional producer of natural gas, refined products, LPG and crude. Turkmen commodities are exported to neighbouring central Asian countries, in-cluding Afghanistan, as well as to Mediterranean markets and China.

Turkmenistan is one of many governments in the region — including Russia, Ukraine, Kazakhstan and Belarus — that officially use Argus pricing information. Uses include regulatory purposes, official selling prices, tax calculation and transfer pricing.

“Argus has been working with energy companies in Turkmenistan for 20 years. We are delighted that the government has recognised the accuracy and reliability of the independently assessed prices that we produce,” Argus Media chairman and chief executive Adrian Binks said.

Media Contacts: London Seana Lanigan +44 20 7780 4272 [email protected]

PEGAS: Half-Year Volumes More Than Double Year-On-YearLeipzig, Paris, July 23, 2014: In the first half of 2014, a total volume of 248.4 TWh was traded on PEGAS, the natural gas platform commonly established by the European Energy Exchange (EEX) and Powernext. This represents more than double the volume traded in the same period last year (2013: 102.1 TWh). Furthermore, this volume is higher than the total volume reached in 2013 (222.6 TWh).

“The results from the first half of 2014 show that PEGAS is already well established in the market”, says Peter Reitz, Chief Executive Officer of EEX. “Nevertheless, there is still huge potential on the European natural gas markets for PEGAS to grow in the future.”

The total volume included 125.6 TWh from trading on the PEGAS Spot Markets and 123.8 TWh from the Derivatives Markets. Focusing on the Dutch TTF market area, volumes are rising continuously with new monthly records on both the Spot (7.0 TWh) and Derivatives Market (18.4 TWh) in June 2014.

http://www.argusmedia.com/Info/Petrochemicals/Propylene-Annual



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On 9 July, Spot and Futures products for the Belgian hubs ZTP and ZTPL were launched successfully on PEGAS. On the same date, 24/7 trading for the French gas spot markets was also introduced on PEGAS.

“The new products further expand the geographical reach of PEGAS”, says Jean-François Conil-Lacoste, Chief Executive Officer of Powernext. “Our offering for the Belgian hub is an important step in order to create a Pan-European gas trading platform.”

PEGAS: Successful Launch of ZTP/ZTPL Contracts and 24/7 TradingParis, Leipzig, July 10, 2014: PEGAS, the natural gas platform commonly established by the European Energy Exchange (EEX) and Powernext, announces the successful launch of new Spot and Futures contracts on the Belgian Zeebrugge Trading Point on Wednesday 9 July. On the same day, 24/7 trading was enabled on both the French PEG and Belgian ZTP/ZTPL Spot Markets.

14 members were on hand and ready to trade on ZTP Spot and Futures as well as ZTPL Spot products. The first transaction was completed at 8:52 a.m. CET on ZTP Spot DA at 16.00 €/MWh. Activity was also observed on ZTPL Spot, with first transaction on DA product being completed at 10:14 a.m. CET at 15.90 €/MWh.

With the launch on PEGAS, ZTP Futures are listed on a regulated organised market for the first time. The Front Month contract, August 2014 was traded for the first time at 9:56 a.m. CET, for a price of 16.05 €/MWh and a volume of 10 MW between Lampiris France SAS and Direct Energie SA. The contract settled at 15.60 €/MWh at the end of the trading session. A monthly index based on this contract will diligently follow if liquidity proves sustainable.

Rudy Van Beurden, Fluxys Belgium’s Communication Manager, stated: “Traded quantities at ZTP have steadily stepped up since its launch and the attractiveness of the gas trading place has increased accordingly. We are very pleased to see the ZTP products on the PEGAS platform take such a successful start and it confirms the prospect that PEGAS products and members will provide an additional boost to ZTP’s liquidity.”

Richard Katz, Powernext’s Sales and Communication Director, adds: “We are very satisfied with the successful implementation of Belgian products, as it represents an

important step in the development of PEGAS European-wide coverage”.

Spot and Futures contracts on Zeebrugge Beach (ZEE) and National Balancing Point (NBP) will be introduced later in 2014 on PEGAS, including the “basis spread” product (ZEE / NBP).

For its first day of operating a 24/7 Spot market, Powernext registered its first off-hour transactions.

About PEGAS – Pan-European Gas Cooperation: PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the framework of this cooperation, both companies combine their natural gas market activities to create a pan-European gas offering. Members benefit from one common Trayport gas trading platform with access to all spot and derivatives market products offered by the two exchanges for the German, French and Dutch market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information: www.pegas-trading.com

About EEX: The European Energy Exchange (EEX) is the leading European energy exchange. It develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances, coal and guarantees of origin are traded. In the context of its majority shareholding in Cleartrade Exchange (CLTX), EEX additionally offers the markets for freight, iron ore, fuel oil and fertilizer. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group. For more information: www.eex.com

About Powernext: Powernext SA manages complementary, transparent and anonymous energy markets. Powernext Gas Spot and Powernext Gas Futures were launched on 26 November 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. Powernext manages the National Registry for electricity guarantees of origin in France since 1 May 2013. Powernext owns 50 % in EPEX SPOT and 20 % in EEX Power Derivatives. For more information: www.powernext.com.

http://www.pegas-trading.com

http://www.eex.com

http://www.powernext.com

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EPEXSPOT: Power Trading Results in June 2014–15-Minute Volume Surges to All-Time High Paris, Leipzig, Bern, Vienna, July 1, 2014: In June 2014, a total volume of 30 TWh was traded on EPEX SPOT’s Day-Ahead and Intraday markets (June 2013: 28.4 TWh). The volume in 15-minute contracts on the German and Swiss Intraday markets reached another all-time high and climbed to 449,494 MWh. It is a 4 % increase from the previous record in May 2014 (430,740 MWh). In June, they represented 20.7% – more than one fifth – of the volume traded on the German and Swiss Intraday markets. The increasing liquidity of the 15-minute segment sets a strong foundation for the upcoming German Intraday call auction for 15-minute contracts. This auction, scheduled to launch in Q4 2014, will take place seven days a week and will help determining a clear cut price signal for 15-minute contracts in Germany.

Day-Ahead Markets In June 2014, power trading on the day-ahead auctions on EPEX SPOT accounted for a total of 27,585,151 MWh (June 2013: 26,359,275 MWh) and can be broken down as follows:

AreasMonthly volumeMWh

Monthly volume – previous yearMWh

Price – monthly average (Base / Peak*)Euro/MWh

DE/AT 20,499,865 20,863,801 31.52 / 38.16

FR 5,225,309 4,017,549 30.65 / 38.85

CH 1,859,977 1,477,926 31.62 / 38.75

ELIX – European Electricity Index 29.44 / 36.73

* Peak excl. weekend

Prices within the German and the French market, both coupled within the Price Coupling covering North-Western and South-Western Europe, converged 71% of the time. This is the highest value since September 2013 (73%).

Intraday Markets On the EPEX SPOT intraday markets, a total volume of 2,459,328 MWh was traded in June 2014 (June 2013: 2,048,695 MWh).

AreasMonthly volumeMWh

Monthly volume – previous yearMWh

DE/AT 2,124,572 1,852,575

FR 250,241 188,246

CH 84,515 7,874*

* Swiss market launched on 26 June 2013

In June, cross-border trades represented 22.8% of the total intraday volume.

About the European Power Exchange EPEX SPOT SE: EPEX SPOT SE operates the power spot markets for France, Germany, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT also acts as

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service provider for the market operations of the Hungar-ian Power Exchange HUPX and operates the coupling be-tween the Czech, the Slovakian, the Hungarian and soon the Romanian markets on behalf of the local Exchanges.

EPEX SPOT was created in 2009 by the merger of the power spot markets of the German and the French Energy Exchanges. It is a European company (Societas Europaea) based in Paris with branches in Leipzig, Bern and Vienna. Over 220 companies from Europe and the USA are active on EPEX SPOT. In 2013, 346 TWh were traded on EPEX SPOT’s markets.

Barchart Releases Java Client for OnDemand APIsChicago, July 10, 2014: Barchart.com, Inc., a leading provider of market data and information, today announced the release of a native Java client for accessing Barchart OnDemand APIs. The open source Java client is available as a public project through gitHub (https://github.com/barchart/barchart- ondemand-client-java) which means registered gitHub users can also make contributions to the project. The Barchart OnDemand Java client simplifies the integration of Barchart’s market data APIs into Java applications since it includes pre-packaged Java code to execute Barchart OnDemand queries. Barchart OnDemand is a cloud-based service developed for accessing and delivering market data and information using web services. Barchart OnDemand is built upon the Amazon Web Services (AWS) cloud infrastructure and features the ability to easily access an extensive amount of market data and information.

Barchart OnDemand offers over 35 web services APIs to access market data and information, including pricing from equity and commodity exchanges around the world, reference and fundamental data from public companies and global news. The APIs include:

• Price Data: getData, getQuote(s), getQuoteEod, getHistory, getFuturesOptions, getSpecialOptions

• Profiles and Financial Data: getProfile, getFinancialHighlights, getFinancialRatios, getIncomeStatements, getBalanceSheets, getCompetitors, getInsiders, getRatings, getIndexMembers

• Splits, Dividends and Earnings: getCorporateActions, getEarningsEstimates

• Leaderboards and Lists: getLeaders, getHighsLows, getSectors

• Charts and Analytics: getChart, getTechnicals, getScreener, getSignal, getMomentum

• ETFs: getETFDetails

• Meta Data: getInstrumentDefinition, getFuturesSpecifications, getFuturesExpirations, getFuturesOptionsExpiration

• Other: getWeather, getUSDAGrainPrices

Barchart OnDemand APIs support both GET and POST requests, as well as SOAP, and data can be delivered in multiple formats like XML, JSON and CSV. And, as a web services solution, Barchart OnDemand is compatible with any operating system, such as Windows, Linux, iOS or Android, and any programming language, such as Java, PHP or ASP.NET.

Barchart OnDemand provides cloud-based market data solutions to financial services, trading and investment firms; software and mobile app developers; digital media; commodity producers and processors; and, corporate investor relations and treasury departments. Barchart OnDemand can be used to supply financial data to front, middle and back-office software applications used for market analysis, trading, and accounting, as well as for integrating financial content into websites and mobile apps. Other applications include powering portfolio management tools, risk management systems and charting applications.

For more information, visit www.barchart.com/ondemand.

http://8.18.161.85:8181/CT00034502MTI2Mg==.HTML?D=2014-07-10







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

On the New York Mercantile Exchange (NYMEX), crude oil prices for NYMEX prompt-month contracts for Brent and Western Texas Intermediate (WTI) slid down together. Although Brent prices almost didn’t change when compared to July of last year, WTI was 2% cheaper than it was a year ago. This month, data from NYMEX future settlements showed that Brent and WTI crude prices dropped by 4% and 2% respectively when compared to last month. The larger drop in the European benchmark caused the Brent-WTI spread (represented by the light blue area in the graph above) to shrink in July 2014, reaching $5 USD/Bbl.

Prompt-month contracts for WTI dropped to $103 USD/Bbl, whereas the prompt-month contract for Brent slid to $108 USD/Bbl. The past 12-month averages for WTI and Brent on NYMEX are $102 USD/Bbl and $109 USD/Bbl respectively. Also, the Brent-WTI spread has been $8 USD/Bbl on average over the past year.

Despite geopolitical tensions in Eastern Europe and the Middle East, there have been no disruptions to well-supplied crude markets. Clearly, oil traders do not expect the sanctions against the Russian energy sector to have drastic effects on the crude market yet. According to the Associated Press, a manufacturing survey from China showed that factory activity in Japan has reached its highest level in 18 months, a sign that Beijing’s stimulus measures are having a positive effect.1

Although analysts expected a drop of 2.6 million barrels in U.S. oil supplies, U.S. data showed oil supplies falling by 3.97 million barrels for the week ending July 11. The main contributor to the recent decline of U.S. crude stock is U.S. refineries, many of which have record-high crude oil processing rates. These refineries turn more crude oil into refined petroleum products than the current market needs.1

1 “Oil Price Drifts Below $103 a Barrel Despite China Manufacturing Improvement,” US NEWS, July 24, 2014, Accessed July 29, 2014, http://www.usnews.com/news/business/articles/2014/07/24/oil-drifts-down-despite-china-manufacturing-bounce.

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http://www.usnews.com/news/business/articles/2014/07/24/oil-drifts-down-despite-china-manufacturing-bounce%20

http://www.usnews.com/news/business/articles/2014/07/24/oil-drifts-down-despite-china-manufacturing-bounce%20

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

On the New York Mercantile Exchange (NYMEX), forward curves for both European and U.S. crude oil benchmarks dropped in July 2014 when compared to the previous month. The NYMEX Brent forward curve for delivery in the next 24 months (represented by the blue line in the graph above) slightly dropped to $102 USD/Bbl, while Western Texas Intermediate (WTI) (the red line in the graph above) averaged at $91 USD/Bbl for the same delivery period. The Brent-WTI spread widened from $10 USD/Bbl to $11 USD/Bbl (the light blue area in the graph) on average for the next 2 years.

Crude market players kept an eye on the outcome of the Federal Open Market Committee (FOMC)’s policy meeting, U.S. GDP growth, and geopolitical tensions in several key regions. Market players seemed reluctant to lock in big positions before receiving key indicators of the economy’s status. On August 1, 2014, U.S. non-farm payrolls, the unemployment rate for July, and the Markit Economics Manufacturing PMI are due. Key European inflation and employment data and manufacturing activity gauges from China will be published at the end of same week.

While EU leaders are trying to impose their toughest sanctions to date against Russia, the market continues to believe that this will not affect production levels. It should be mentioned that Russia is the world’s largest energy producer and supplies energy to Europe; hence, its production levels have a large impact on Brent prices. Any retaliation from Russia in the form of decreased production levels will push Brent higher; consequently, the Brent-WTI spread will widen. Also, conflicts in Northern Iraq have left oil production in the South unaffected. Libyan crude output is also unaffected (around 500,000 Bbl/day), despite the escalating violence in Tripoli.

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North American Natural Gas Spot Prices (ICE)

On the Intercontinental Exchange (ICE), natural gas prices dropped in July as mild weather surrounded the country. According to ICE data, New York’s Transco Zone-6 experienced the largest fluctuations and was also the cheapest among all the observed cities in July 2014. On ICE, monthly average gas prices dropped in New York’s Transco Zone-6 by 13% to $2.93 USD/MMBtu, in Chicago Citygates by 11% to $4.16 USD/MMBtu, in Henry Hub by 11% to $4.08 USD/MMBtu, and in California’s PG&E Citygate by 8% to $4.74 USD/MMBtu.

For the week ending July 23, 2014, EIA’s “Natural Gas Weekly Update” reported that natural gas spot prices dropped to their lowest levels in eight months due to cooler weather. The mild weather impacting the country throughout July 2014 has put downward pressure on prices, as milder temperatures are associated with tepid demand. EIA also reported from Bentek Energy that for the same week ending, dry natural gas production increased by 0.3 Bcf/d, hitting record high levels of 69.1 Bcf on July 21, 2014.2 In brief, cooler temperatures along with large storage builds supported lower prices in July.

2 “Natural Gas Weekly Update—Week Ending July 23, 2014,” U.S. Energy Information Administration, July 23, 2014, Accessed July 29, 2014, http://www.eia.gov/naturalgas/weekly/.

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http://www.eia.gov/naturalgas/weekly/

Henry Hub Natural Gas Forward Curve (ICE)

On the Intercontinental Exchange (ICE), natural gas futures available for trade in the next 12 months at Henry Hub dropped in July 2014, as the summer of 2014 is not anticipated to be hotter than the past 2 summers. In July 2014, natural gas futures on ICE dropped by 5% when compared to the previous month. Meanwhile, the spread between current and previous month contracts (represented above by the red bar) averaged at $0.22 USD/MMbtu until July 2015. When compared to last month, Henry Hub natural gas futures in July fluctuated 30% less, varying between $4.09 USD/MMbtu to $4.63 USD/MMbtu for delivery in the next 12 months.

For the week ending July 23, 2014, EIA’s “Natural Gas Weekly Update” reported that although the storage build was lower than market expectations, strong production levels and tepid demand due to cooler-than-normal temperatures pushed down prices.3 Market expectations projected a build of 96 Bcf in the fourth week of July, while the reported figure for the week ending July 23 was 90 Bcf. However, the gross production and total supply rates were, respectively, 4.98% and 2.80% higher compared to last year’s figures for the same time. Also, U.S. consumption dropped by 9% in the fourth week of July 2014 when compared to the same period last year, while the total demand was down 8.4% for the same period.

3 “Natural Gas Weekly Update—Week Ending July 23, 2014,” U.S. Energy Information Administration, July 23, 2014, Accessed July 29, 2014, http://www.eia.gov/naturalgas/weekly/.

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http://www.eia.gov/naturalgas/weekly/

Actual Weather (AccuWeather)

From June 2014 to the last Friday of July 2014, the temperature increased in all observed North American cities–following normal seasonal patterns–except for Chicago, which felt the same as last month. The monthly average temperature rose in San Diego by 3 degrees to 23 Celsius (C), in San Antonio by 1 degree to 31 C, and in New York city by 3 degrees to 26C, while the temperature in Chicago stayed at 22C when comparing July 2014 to the previous month.

In July 2014, the 2-year average in all observed cities was highly varied. When comparing the past 2-year average of July temperatures to July 2014 temperatures, this year’s July felt 2 degrees hotter in San Diego, but it felt cooler in Chicago, San Antonio, and New York by 4, 2, and 1 degree(s) respectively. In July 2014, the city of Chicago experienced the largest fluctuations among all observed cities, as the city reached 16C mid-way through the month. The city felt hotter as it went up to 29C on July 22, settling at around 19C for the last three days of observation. This year’s July did not end up deviating from the normal seasonal pattern for this time of year, based on the 2-year average and a comparison with the previous month.

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Electricity: Day-Ahead Prices (ICE)

On the Intercontinental Exchange (ICE), electricity day-ahead prices fluctuated in different directions in July 2014 when compared to last month, although temperature did not seem to boost demand. From June 2014 to July 2014, electricity prices dropped in PJM by 10% to $51 USD/MWh, in ERCOT (Texas) by 8% to $37 USD/MWh, and in NYISO by 1% to $49 USD/MWh. By contrast, CAISO’s SP15 day-ahead prices rose by 4% to $53 USD/MWh when compared to last month. When comparing July 2014 to July 2013, data from ICE suggests that CAISO’s SP15 and ERCOT went up by 2% from $52 USD/MWh and by 9% from $34 USD/MWh in 2013, respectively. Meanwhile, PJM and NYISO dropped by 18% from $62 USD/MWh and by 38% from $79 USD/MWh in 2013, respectively. It should be noted that San Diego felt 2 and 3 degrees hotter in July 2014 when compared to July 2013 and July 2012.

Higher temperatures most often push electricity prices higher by raising demand, but the mild weather in July 2014 was not enough to boost demand.

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Natural Gas Market ChangesNatural gas has become a central subject of discussion within the energy market over the past several years. There are many reasons for this. First, the gas industry has experienced extraordinary success during the last decade. Horizontal drilling and the large-scale development of shale basins in the U.S. have become economically reasonable. Liquefied natural gas (LNG) technologies which have been around since the 1950s are now commercially viable. As a result, unlike other fossil fuels, natural gas is now widely used, and this usage continues to increase in most sectors of the modern economy: power generation, manufacturing, transportation, and more traditional areas, such as commercial and residential end-use consumption.

The LNG trade has expanded rapidly around the world, and interconnected networks of gas pipelines have and are still being developed inside and around Europe and Middle Asia. The natural gas industry is now facing a number of new challenges and opportunities related to

both its demand and supply. On the demand side, the implementation of green energy policies will lead to a substantial increase in future gas demand. On the supply side, new natural gas resources are emerging around the world, mainly because of an increase in global LNG supply and the shale gas revolution. This unprecedented shift in the supply/demand balance for many countries is creating new market dynamics and altering gas pricing mechanisms. This article, the first in a two-part series that explores changes to the natural gas market, will provide a succinct overview of factors that will surely affect natural gas pricing mechanisms.

Natural Gas Market Macro DriversEffective analysis of the interaction between drivers of natural gas demand requires recognition of the uncertainty involved in this process. Simple forecasts or scenarios are unlikely to do justice to the complexities of the industry. Instead, an analytical framework is required to adequately capture the interaction between macro drivers of natural gas demand and alternative sources of

This article, the first in a two-part series that explores changes to the natural gas market, will provide a succinct overview of factors that will surely

affect natural gas pricing mechanisms.

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By Vera Tikhomolova

The Future of the Natural Gas MarketPart One: Macro Drivers of Supply

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thgas supply. In this article, I lay the groundwork for an effective analytical framework, based on the factors illustrated in Figure 1: Macro Drivers of the Future Natural Gas Market

To understand the market’s current macro drivers, it is essential to comprehend a historical analysis of market movements over the last few years.

In North America, liquid spot and futures gas markets and a main natural gas hub have existed since the 1980s. In Europe, however, trading hubs began to succeed in 2008 as a result of the financial crisis. During this period, a combination of lower demand and a surplus of LNG created ideal conditions for hubs to develop liquidity and become the reference price for gas in Northwest European markets. In Asia, as a result of substantially rising international LNG price since the Fukushima nuclear accident in 2011, the Japan Crude Cocktail pricing mechanism has become no longer appropriate.

At the same time, the evolution of the global gas market is still unclear. The global market is still developing, and natural gas is evolving into a global commodity. Shale gas extraction is well developed in the U.S., and new technologies could be implemented in other countries with strategic shale gas resources, such as Ukraine and Poland. However, the development of unconventional gas reserves in these countries is under scrutiny, given existing state regulations and geopolitical tensions.

As the Asian demand for natural gas is vast, all of the large countries producing natural gas (with the exception of Netherlands and Norway) are interested in making long-term contracts with Asian buyers. The Asian market is a major area of interest for traditional regional producers like Qatar. The Russian company Gazprom, which has been trying to secure a long-term contract with China for many years, finally signed a 30-year contract with this country. The gas price from this contract, however, has not yet been discussed. North American and global natural gas market players consider the Asian market to be the major consumer of American LNG.

The European market is currently under the control of Gazprom. However, Europe could be switched to using natural gas from Central Asia, Qatar, and U.S. LNG. Besides, even with huge pessimism about the long-term development of the European shale market, it is still possible to produce shale gas in many European countries.

To gain an advantage in the industry, Algeria, Bolivia, Brunei, Egypt, Equatorial Guinea, Indonesia, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, the United Arab Emirates, and Venezuela established a gas cartel (Gas Exporting Countries Forum) in December 2008. This natural gas cartel was created to play a role within the natural

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thgas market similar to the one OPEC has in the oil market. As of 2013, gas cartel members accounted for about 67%1 of the world’s gas proven reserves and 40%2 of production.

In the meantime, large natural gas producers that mostly delivered natural gas in Europe and Asia became interested in protecting their futures by keeping natural gas prices beneficial to themselves. Natural gas forecasts produced by credible agencies showed future natural gas prices at historically high levels. Traditional natural gas exporters counted on future profits. Major industry players were going to live in a new reality.

From 2008-2010, the majority of market players were ready to pay for futures that had a much higher price than the prices in the spot market, as shown in Figure 2.

Figure 2: Natural Gas Contract Pricing (Source: ICE, CME)

However, without a global LNG market, the gas cartel could not control quotas and prices, unlike OPEC, as natural gas has historically been a national or regional commodity.

This is one of many reasons why the “Gas OPEC” was not comparable to the influential, actual OPEC. Further explanations and more reasons are listed below:

There was no global gas market, as there was with oil. The challenge of transporting gas lead to tough competition for consumers, tearing the camp of suppliers apart. For example, Qatar wanted to increase exports of LNG to Europe. This was intended to disturb Gazprom, who viewed the European market as their primary sales outlet. In response, Russia was determined to conquer the Asian market, which they viewed as the major market for Qatari LNG.

Internal and external political factors compounded the situation. Tensions in the Middle East and North Africa in 2011 engendered changes in regimes and altered the balance of power in these countries’ energy sectors. For example, the gas industry in Egypt and Libya, which was a part of the new gas cartel, experienced negative effects as a result of the Arab Spring. Iran, too, suffered from sanctions.

Differences between the policies of gas suppliers also did not support gas cartel development. For example, Russia tended to export pipeline gas under long-term contracts and thus was interested in sustaining year-round supplies at a preset price. The formula for gas prices used in long-term contracts is linked to oil products. In contrast, Qatar, the 1 CIA Factbook, https://www.cia.gov/library/publications/the-world-factbook/rankorder/2253rank.html. 2 CIA Factbook, https://www.cia.gov/library/publications/the-world-factbook/rankorder/2249rank.html.


https://www.cia.gov/library/publications/the-world-factbook/rankorder/2253rank.html

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2249rank.html

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thworld’s leading exporter of LNG, was interested in fast sales at spot prices, which vary along with current market demand and are not fixed in the long term. As a result, Qatar avoided the real issues involved with developing a gas pricing discovery mechanism.

In 2008, prices of natural gas started to decline, as shown below. The global economy continued to deteriorate too, as most countries slipped deeper into a recession. Reduced OPEC supply helped to ease the downward slide of oil prices. However, a mechanism to keep the natural gas price from falling did not exist. Ongoing conflicts in the Middle East and the Russia-Ukraine natural gas disputes only revived some bullishness in the market. However, it would be wrong to underestimate the substantial changes in the global natural gas market that were occurring at the same time.

First, price movements were the same in different parts of the world, as shown Figure 3.

Figure 3: Natural Gas Price Movement (Source: ICE)

Second, as shown in Figure 4, natural gas and crude oil prices moved together before the end of 2008, as they were supposedly considered substitutes. Since 2009, natural gas and crude oil prices have not been strongly correlated.

Figure 4: Natural Gas and Oil Price Movement (Source: ICE)

Third, substantial changes occurred in industry participants’ understanding of the LNG market. Historically, pipelines have played a critical role in connecting and balancing natural gas supply and demand, usually across vast distances. LNG technologies and the development of import/export terminals made long-distance natural gas transportation possible.



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thLNG was not a new concept in 2008. In 1964, the U.K. became the world’s first LNG importer and Algeria the first LNG exporter. Algeria has since become the world’s major supplier of LNG. Spain is another large importer. In 1969, Alaskan LNG was sent to Japan. Japan has also been receiving LNG exports from Indonesia’s Arun gas field since the late 1970s.

By 2008, North America’s substantial unconventional gas reserves and the rising Asian demand for natural gas altered the economics of LNG. Over the last several years, large scale tanker delivery has become economically feasible. With further LNG development, natural gas market players started to talk about natural gas as a global commodity. As a result, now, as shown in Figure 5, the U.S. is currently importing natural gas from Europe, the Middle East, Latin America, and Africa. The U.S. is exporting to Canada and Mexico, Europe and Asia, and Brazil and India.

Figure 5: U.S. Natural Gas Import and Export (Source: EIA)

Current Global Supply, Including Shale Gas DevelopmentThe United States Is the Biggest Natural Gas Producer

The historical events in the global natural gas market that were discussed above have given way to present trends that will impact pricing structures in the industry. Current developments will be summarized below.

Drilling success in the U.S. and Canada is changing U.S. reserves, pricing structures, and the pipeline landscape—all so that valuable hydrocarbons can be brought forward to the market.

Upon achieving success in shale gas production, the U.S. has now become a net exporter of natural gas, exporting to Japan, Spain, Brazil, India and other countries around the world. LNG prices around the world support LNG exports from the U.S., as shown in Figure 6.

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thFigure 6: LNG Price around the World (Source: FERC)

The U.S. Federal Energy Regulatory Commission (FERC) continues to receive multiple requests for the approval of plans to develop export LNG terminals, as shown in Figure 7.

Figure 7: Potential and Proposed LNG Terminals (Source: FERC)

With numerous LNG export terminals under development, some energy companies have changed their vision of the world’s future to include not only Europe, Asia, and Latin America, but even Far North developments in North America. Some companies are now proposing gas-fired electrical generators based on delivered LNG instead of traditional transmission system expansions.

Market analysts and credible agencies have now factored in world-wide LNG delivery as a driver in their natural gas price forecasts. In these forecasts, the U.S. is assumed to be the biggest natural gas producer in the world ahead of Russia, Canada, North Sea countries, Iran, and Qatar. Asian and European markets are assumed to be major consumers.

Federal Energy Regulatory Commission • Market Oversight • www.ferc.gov/oversight

3024 Source: Waterborne Energy, Inc. Data in $US/MMBtu

World LNG Estimated August 2014 Landed Prices

Updated July 2014

National Natural Gas Market Overview: World LNG Landed Prices

Cove Point $4.50

India $11.55

UK $8.75

Spain $9.05

Belgium $8.84

Japan $12.40

Korea $12.40

Lake Charles $3.96

Altamira $4.60

Cove Point $4.40

India $11.55

UK $8.75

Spain $9.15

Belgium $8.99

Japan $13.10

Korea $13.10

Lake Charles $3.93

Altamira $4.57

Cove Point $4.50

India $11.55

UK $8.75

Spain $9.05

Belgium $8.84

Japan $12.40

Korea $12.40

Lake Charles $3.96

Altamira $4.60

Cove Point

India

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Spain

Belgium

Japan

Korea

Lake Charles

Altamira

Rio de Janeiro

Bahia Blanca

Canaport

China

12.23$

12.48$

12.34$

4.00$

3.27$ 3.73$

9.70$

6.59$ 6.76$

11.20$ 10.95$

11.35$

11.35$

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thGazprom’s Hegemony in EuropeAt the same time, Russia has continued conventional gas and pipeline transportation development, meeting around 30% of European natural gas demand with its exports. Gazprom’s control over hydrocarbons in the region has increased from its access to the Black Sea—a result of Russia’s annexation of Crimea in 2014.

As shown in Figure 8, Gazprom has and continues to export large volumes of natural gas to Europe.

Figure 8: 2013 Gazprom Natural Gas Export (Source: Gazprom)

After the collapse of the Soviet Union, Russia began to experience some problems transporting gas to Europe. Heritage gas transportation systems from Russia to Europe started to become a headache. In 2006, Ukraine, which hosts the major gas pipeline between Russia and Europe, started a gas war about Russia’s gas monopoly through Gazprom. See the existing pipeline system in Figure 9.

Figure 9: Existing Gas Transportation System from Russia to Europe (Source: GasTechNews)

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thAfter the de-escalation of the Ukrainian-Russian conflict in 2006, new pipeline construction began throughout the Russian Northwest (Nord Stream) and South (South Stream), as shown in Figure 10.

Figure 10: Nord Steam and South Steam Pipelines (Source: Deutsche Welle)

These pipelines were supposed to deliver gas to major European Gazprom consumers.

New pipelines were built to compete with the Nabucco project, which intended to deliver Caspian gas to Europe while bypassing Russia. Meanwhile, experts doubted the large-scale gas project was viable, as LNG supplies from the Middle East and potentially from the U.S. began to compete with Russian natural gas supplies. The global boom of shale gas development also posed a threat to Gazprom.

The development of the South Stream and North Stream pipelines came amidst tightening EU energy policies, which aimed to decrease the EU’s dependency on Russian gas, especially natural gas markets in Central and Eastern Europe.

Gazprom’s gas market was and continues to be relatively weak and controlled by the state. In comparison to the large-scale U.S. natural gas market, Gazprom’s pricing mechanism still links natural gas prices to crude oil. All European and Asian contracts have maintained the dependencies outlined in Figure 11 until now. Historically, crude oil prices drove European natural gas contracts by 67%, with a substantial input from Gazprom and an Asian input of 88%, according to the JCC (Japanese Customs-Cleared Crude Oil) indexation mechanism.

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thFigure 11: Natural Gas Contract Pricing (Source: Alaska Natural Gas Transportation Project)

Gazprom has repeatedly stressed that shale gas development globally and decreasing European demand doesn’t pose any threat to its business. “Protecting” itself from the fictitious natural gas cartel described earlier and ignoring the reali-ties of the global natural gas market, Gazprom continues to link natural gas contracts to crude oil prices. As a result, the difference now between American and European gas prices is substantial. Due to this divergence, liquefaction and tanker deliveries from the U.S. to Europe seem economically reasonable.

Other Big Players in the European MarketNorth Sea countries are also playing a very important role in the European market. Norway is the world’s third-largest exporter of natural gas after Russia, and Qatar produces 35% of European imports. As well, as of 2012, Norway is the sixth largest dry natural gas producer. However, North Sea oil and gas production has declined during the last few years after its peak from 1999-2004, as the region’s aging fields have become depleted.

In the Barents Sea, Norwegian Statoil and Russian Gazprom have developed the Shtokman natural gas and condensate field. However, in 2012, the project was indefinitely delayed due to technical and financial challenges.

Netherlands is also involved in North Sea natural gas production, creating 4% of European imports. Norway and Netherlands combined, however, export less than Russia, as shown in Figure 12.

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thFigure 12: Natural Gas Export (% from World Export) (Source: The World Factbook – CIA)

Changes in natural gas development have not been as dramatic for North Sea countries. The only issue to mention here is that shale methane production has been much lower in this region than was initially expected. Natural gas is still transported from the North Sea using traditional pipeline systems.

Central Asian, Middle Eastern, and North African Gas FieldsThe Middle East contains substantial natural gas resources. Along with traditional natural gas producers such as Qatar, Iran, Syria, and Lebanon and Turkey, Central Asian countries like Kazakhstan and Tajikistan contain sizeable resources. Potentially, many of these countries will be able to deliver natural gas to European consumers via a new pipeline system from the Middle East. When this system is put in place, natural gas will flow into Europe from Saudi Arabia, Qatar, and Iran through Syria, Lebanon and Turkey, and Kazakhstan and Tajikistan. Many new pipelines that form a part of this network are presently under development, as shown in Figure 13.

Figure 13: Middle East Pipelines to Europe (Source: ACD)

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thSome of the pipeline developments in the Middle East are already under construction. In the meantime, debates about the viability of new Asian pipelines in the Middle East continue. For example, Nabucco’s pipeline, which was supposed to deliver natural gas from Turkey to Austria, is no longer considered commercially viable.

Algeria, Libya, and Egypt in North Africa have the potential to supply more natural gas to European countries. According to EIA, these countries can provide about 44% of what Russia does today. However, problems with infrastructure and political instability decrease the probability of big changes.

New Possible Natural Gas Market Players

As shown in Figure 14, large shale gas formations exist in other parts of the world.

Figure 14: Shale Gas Basins around the World (Source: Advance Resource International)

According to a range of different sources, China has substantial shale gas resources (the largest in the world, according to EIA). North and South Africa, South America, and Australia also have technically recoverable shale gas resources. Finally, shale gas formations exist in Europe, with the largest estimated reserves located in Poland, Romania, and Ukraine.

Shale basins are not only located in the U.S. China claims to have substantial shale gas deposits. Eastern European countries, especially Ukraine and Poland, have proven huge shale resources. Ukraine has Europe’s third-largest shale gas reserves, averaging 1.2 trillion cubic meters, according to different estimates. There are two potentially large shale gas fields and unconventional hydrocarbons in the Black Sea (Crimea). The Yuzivska gas field is located in the Donetsk and Kharkiv regions, and the Olesska field is in the Lviv and Ivano-Frankivsk regions.

Major improvements to shale gas extraction technologies that have been made between the last six to eight years are also impacting the global natural gas market. These technologies have been widely tested in the U.S. by international oil and gas companies. The involvement of these companies might potentially support fast and successful shale gas devel-opment in Ukraine in particular. For example, at the end of January 2013, Ukraine signed a 50-year shale gas production sharing agreement with Royal Dutch Shell; this agreement involves commercial shale gas extraction in the Yuzivska gas field by 2017. In addition, in November 2013 Chevron signed a 50-year agreement with the Ukrainian government to develop oil and gas in Western Ukraine. In the same month, the Ukrainian government signed another production-sharing agreement with a consortium of investors led by Italian energy company Eni to develop unconventional hydrocarbons in the Black Sea. Various oil companies, including Chevron, Shell, ExxonMobil, Repsol, and even PetroChina have shown interest in developing their offshore energy assets in Crimea.

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thMoreover, Ukraine has inherited a major pipeline system linking Russia to Europe. As North Stream is still being constructed and South Stream has yet to receive regulatory approvals, the Ukrainian pipeline system is the only dependable way for natural gas to flow from Russia to Europe.

Only six month ago, Ukraine appeared to be a potentially powerful gas market player in Europe, while Russia’s Gazprom was losing control of the European gas market. Even now, with the escalation of the Ukrainian crisis, we cannot exclude Ukraine’s shale gas market development from the list of global market drivers.

Learn about present trends in natural gas demand and the pricing mechanisms of global contracts in the second part of this article, coming soon. v

About ZE PowerGroup Inc.:ZE is an experienced software and strategic consulting firm that combines energy industry expertise with advanced software development capabilities. The company possesses deep industry knowledge and comprehensive operational experience. ZE is the developer of ZEMA Suite, a sophisticated Enterprise Data Management and Analysis solution built to meet the specific challenges of energy and commodity market participants.

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Disclaimer:ZE DataWatch is a report comprised of data updates and expectations for energy and commodity markets, powered by ZEMA. The information contained in ZE DataWatch is for information purposes only. Although ZE PowerGroup believes the information in this report is correct and attempts to keep the information current, ZE PowerGroup does not warrant the accuracy or completeness of any information. 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.


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