METHODOLOGY AND SPECIFICATIONS GUIDE

ARGUS INTERNATIONAL LPG

Contents:
Methodology overview 2
Argus International LPG report 6
International comparisons 6
Naphtha6
LPG freight assessments 6
Northwest Europe and Mediterranean 7
Eastern Europe 9
Asia-Pacific 10
China wholesale propane/butane mix 16
Middle East and Asia-Pacific averages 17
Africa LPG indexes 17
Americas 18
International swaps prices 19
LNG assessments 20

UPDATED: FEBRUARY 2025

The most up-to-date Argus International LPG methodology is available on www.argusmedia.com

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Methodology overview Market data usage

In each market, Argus uses the methodological approach deemed
Methodology rationale to be the most reliable and representative for that market. Argus will
Argus strives to construct methodologies that reflect the way the utilise various types of market data in its methodologies, to include:
market trades. Argus aims to produce price assessments that are
reliable indicators of commodity market values, free from distortion • Transactions
and representative of spot market values. As a result, the specific • Bids and offers
currencies, volume units, locations and other particulars of an as- • Other market information, to include spread values between
sessment are determined by industry conventions. grades, locations, timings, and many other data.

In the international LPG markets, Argus publishes physical market In many markets, the relevant methodology will assign a relatively
prices in the open spot market as laid out in the specifications higher importance to transactions over bids and offers, and a
and methodology guide. Argus uses the trading period deemed relatively higher importance to bids and offers over other market
by Argus to be most appropriate, in consultation with industry, to information. Certain markets however will exist for which such a
capture spot liquidity. Additionally, Argus reflects international LPG hierarchy would produce unreliable and non-representative price as-
swap market prices as a bid-offer range over various time ranges sessments, and so the methodology must assign a different relative
depending on the broad regional location of the market, detailed importance in order to ensure the quality and integrity of the price
in the methodology below. This approach aligns the financial swap assessment. And even in markets for which the hierarchy normally
with its underlying regional futures settlement price. applies, certain market situations will at times emerge for which the
strict hierarchy would produce non-representative prices, requiring
In order to be included in the assessment process, deals must meet Argus to adapt in order to publish representative prices.
the minimum volume, delivery, timing, and specification require-
ments in our methodology. In illiquid markets, Argus assesses the Verification of transaction data
range within which product could have traded by applying a strict Reporters carefully analyse all data submitted to the price assess-
process outlined later in this methodology. ment process. These data include transactions, bids, offers, vol-
umes, counterparties, specifications and any other information that
Survey process contributes materially to the determination of price. This high level
Argus price assessments are informed by information received from a of care described applies regardless of the methodology employed.
wide cross-section of market participants, including producers, con- Specific to transactions, bids, and offers, reporters seek to verify the
sumers and intermediaries. Argus reporters engage with the industry price, the volume, the specifications, location basis, and coun-
by proactively polling participants for market data. Argus will contact terparty. In some transactional average methodologies, reporters
and accept market data from all credible market sources including also examine the full array of transactions to match counterparties
front and back office of market participants and brokers. Argus will and arrive at a list of unique transactions. In transactional average
also receive market data from electronic trading platforms, Argus methodologies, full details of the transactions verified are published
Open Markets® (AOM®) and directly from the back offices of market on electronic bulletin boards that are accessible by subscribers. The
participants. Argus will accept market data by telephone, instant mes- deals are also published in the daily report.
senger, email, AOM or other means.
Several tests are applied by reporters in all markets to transactional
Argus encourages all sources of market data to submit all market data to determine if it should be subjected to further scrutiny. If a
data to which they are a party that falls within the Argus stated transaction has been identified as failing such a test, it will receive
methodological criteria for the relevant assessment. Argus encour- further scrutiny. For assessments used to settle derivatives and for
ages all sources of market data to submit transaction data from many other assessments, Argus has established internal proce-
back office functions. Argus will contact and accept market data dures that involve escalation of enquiry within the source’s company
from all credible market sources including front and back office of and escalating review within Argus management. Should this pro-
market participants and brokers. cess determine that a transaction should be excluded from the price
assessment process, the supervising editor will initiate approval
Throughout all markets, Argus is constantly seeking to increase the and, if necessary, documentation procedures.
number of companies willing to provide market data. Reporters are
mentored and held accountable for expanding their pool of contacts. Primary tests applied by reporters
The number of entities providing market data can vary significantly • Transactions not transacted at arm’s length, including deals
from day to day based on market conditions. between related parties or affiliates.
• Transaction prices that deviate significantly from the mean of
For certain price assessments identified by local management, if more all transactions submitted for that day.
than 50pc of the market data involved in arriving at a price assessment • Transaction prices that fall outside of the generally observed
is sourced from a single party the supervising editor will engage in an lows and highs that operated throughout the trading day.
analysis of the market data with the primary reporter to ensure that the • Transactions that are suspected to be a leg of another trans-
quality and integrity of the assessment has not been affected. action or in some way contingent on an unknown transaction.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

•S  ingle deal volumes that significantly exceed the typical trans- The assessment process employing judgment is rigorous, replica-
action volume for that market. ble, and uses widely accepted valuation metrics. These valuation
• Transaction details that are identified by other market par- metrics mirror the process used by physical commodity traders
ticipants as being for any reason potentially anomalous and to internally assess value prior to entering the market with a bid or
perceived by Argus to be as such. offer. Applying these valuation metrics along with sound judgment
• Transaction details that are reported by one counterparty dif- significantly narrows the band within which a commodity can be as-
ferently than the other counterparty. sessed, and greatly increases the accuracy and consistency of the
• Any transaction details that appear to the reporter to be illogi- price series. The application of judgment is conducted jointly with
cal or to stray from the norms of trading behaviour. This could the supervising editor, in order to be sure that guidelines below are
include but is not limited to divergent specifications, unusual being followed. Valuation metrics include the following:
delivery location and counterparties not typically seen.
• Transactions that involve the same counterparties, the same Relative value transactions
price and delivery dates are checked to see that they are Frequently transactions occur which instead of being an outright
separate deals and not one deal duplicated in Argus records. purchase or sale of a single commodity, are instead exchanges of
commodities. Such transactions allow reporters to value less liquid
Secondary tests applied by editors for transactions markets against more liquid ones and establish a strong basis for
identified for further scrutiny the exercise of judgment.

Transaction tests •E  xchange one commodity for a different commodity in the

• The impact of linkage of the deal to possible other transac- same market at a negotiated value.
tions such as contingent legs, exchanges, options, swaps, • Exchange delivery dates for the same commodity at a negoti-
or other derivative instruments. This will include a review of ated value.
transactions in markets that the reporter may not be covering. • Exchange a commodity in one location for the same com-
• The nature of disagreement between counterparties on trans- modity at another location at a negotiated value.
actional details.
• The possibility that a deal is directly linked to an offsetting Bids and offers
transaction that is not publicly known, for example a “wash If a sufficient number of bids and offers populate the market, then
trade” which has the purpose of influencing the published the highest bid and the lowest offer can be assumed to define the
price. boundaries between which a deal could be transacted.
• The impact of non-market factors on price or volume, includ-
ing distressed delivery, credit issues, scheduling issues, Comparative metrics
demurrage, or containment. The relative values between compared commodities are readily
discussed in the market and can be discovered through dialogue
Source tests with market participants. These discussions are the precursor to
• The credibility of the explanation provided for the outlying negotiation and conclusion of transactions.
nature of the transaction.
• The track record of the source submitting the data. Sources •C  omparison to the same commodity in another market centre.
will be deemed more credible if they • Comparison to a more actively traded but slightly different
• Regularly provide transaction data with few errors. specification commodity in the same market centre.
• Provide data by Argus’ established deadline. • Analysis of prices in forward markets for a physically deliver-
• Quickly respond to queries from Argus reporters. able commodity that allow extrapolation of value into the
• Have staff designated to respond to such queries. prompt timing for the commodity assessed.
• How close the information receipt is to the deadline for informa- • Comparison to the commodity’s primary feedstock or primary
tion, and the impact of that proximity on the validation process. derived product(s).
• Comparison to trade in the same commodity but in a different
Assessment guidelines modality (as in barge versus oceangoing vessel) or in a differ-
When insufficient, inadequate, or no transaction information exists, ent total volume (as in full cargo load versus partial cargo load).
or when Argus concludes that a transaction-based methodology will
not produce representative prices, Argus reporters will make an as- Volume minimums and transaction data thresholds
sessment of market value by applying intelligent judgment based on Because of the varying transportation infrastructure found in all
a broad array of factual market information. Reporters must use a commodity markets, Argus typically does not establish thresholds
high degree of care in gathering and validating all market data used strictly on the basis of a count of transactions, as this could lead to
in determining price assessments, a degree of care equal to that unreliable and non-representative assessments. Instead, mini-
applying to gathering and validating transactions. The information mum volumes are typically established which may apply to each
used to form an assessment could include deals done, bids, offers, transaction accepted, to the aggregate of transactions, to transac-
tenders, spread trades, exchange trades, fundamental supply and tions which set a low or high assessment or to other volumetrically
demand information and other inputs. relevant parameters.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

For price assessments used to settle derivatives, Argus will seek to be found on our website at www.argusmedia.com. Included in this
establish minimum transaction data thresholds and when no such policy are restrictions against staff trading in any energy commodity
threshold can be established Argus will explain the reasons. These or energy related stocks, and guidelines for accepting gifts. Argus
thresholds will often reflect the minimum volumes necessary to also has strict policies regarding central archiving of email and
produce a transaction-based methodology, but may also establish instant messenger communication, maintenance and archiving of
minimum deal parameters for use by a methodology that is based notes, and archiving of spreadsheets and deal lists used in the price
primarily on judgment. assessment process. Argus publishes prices that report and reflect
prevailing levels for open-market arm’s length transactions (please
Should no transaction threshold exist, or should submitted data fall see the Argus Global Compliance Policy for a detailed definition of
below this methodology’s stated transaction data threshold for any arms length).
reason, Argus will follow the procedures outlined elsewhere in this
document regarding the exercise of judgment in the price assess- Consistency in the assessment process
ment process. Argus recognises the need to have judgment consistently applied
by reporters covering separate markets, and by reporters replacing
Transparency existing reporters in the assessment process. In order to ensure
Argus values transparency in energy markets. As a result, we this consistency, Argus has developed a programme of training and
publish lists of deals in our reports that include price, basis, coun- oversight of reporters. This programme includes:
terparty and volume information. The deal tables allow subscribers
to cross check and verify the deals against the prices. Argus feels •A  global price reporting manual describing among other
transparency and openness is vital to developing confidence in the things the guidelines for the exercise of judgment.
price assessment process. • Cross-training of staff between markets to ensure proper holi-
day and sick leave backup. Editors that float between markets
Swaps and forwards markets to monitor staff application of best practices.
Argus publishes forward assessments for numerous markets. These • Experienced editors overseeing reporting teams are involved
include forward market contracts that can allow physical delivery and in daily mentoring and assisting in the application of judgment
swaps contracts that swap a fixed price for the average of a floating for illiquid markets.
published price. Argus looks at forward swaps to inform physical as- • Editors are required to sign-off on all price assessments
sessments but places primary emphasis on the physical markets. each day, thus ensuring the consistent application of judg-
ment.
Publications and price data
Argus International LPG prices are published in the Argus Interna- Review of methodology
tional LPG report. Subsets of these prices appear in other Argus The overriding objective of any methodology is to produce price as-
market reports and newsletters in various forms, such as Argus LPG sessments that are reliable indicators of commodity market values,
World. The price data are available independent of the text-based free from distortion and representative of spot market values. As
report in electronic files that can feed into various databases. These a result, Argus editors and reporters are regularly examining our
price data are also supplied through various third-party data integra- methodologies and are in regular dialogue with the industry in order
tors. The Argus website also provides access to prices, reports and to ensure that the methodologies are representative of the physical
news with various web-based tools. All Argus prices are kept in a market being assessed. This process is integral with reporting on
historical database and available for purchase. Contact your local a given market. In addition to this ongoing review of methodology,
Argus office for information. Argus conducts reviews of all of its methodologies and methodol-
ogy documents on at least an annual basis.
Corrections to assessments Argus market report editors and management will periodically and
Argus will on occasion publish corrections to price assessments as merited initiate reviews of market coverage based on a qualita-
after the publication date. We will correct errors that arise from cleri- tive analysis that includes measurements of liquidity, visibility of
cal mistakes, calculation errors, or a misapplication of our stated market data, consistency of market data, quality of market data and
methodology. Argus will not retroactively assess markets based on industry usage of the assessments. Report editors will review:
new information learned after the assessments are published. We
make our best effort to assess markets based on the information we • Appropriateness of the methodology of existing assessments
gather during the trading day assessed. • Termination of existing assessments
• Initiation of new assessments
Ethics and compliance
Argus operates according to the best practices in the publishing The report editor will initiate an informal process to examine viability.
field, and maintains thorough compliance procedures through- This process includes:
out the firm. We want to be seen as a preferred provider by our
sub¬scribers, who are held to equally high standards, while at the • Informal discussions with market participants
same time maintaining our editorial integrity and independence. Ar- • Informal discussions with other stakeholders
gus has a strict ethics policy that applies to all staff. The policy can • Internal review of market data

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Should changes, terminations, or initiations be merited, the report Argus will provide sufficient opportunity for stakeholders to analyse
editor will submit an internal proposal to management for review and comment on changes, but will not allow the time needed to
and approval. Should changes or terminations of existing assess- follow these procedures to create a situation wherein unrepresenta-
ments be approved, then formal procedures for external consulta- tive or false prices are published, markets are disrupted, or market
tion are begun. participants are put at unnecessary risk. Argus will engage with
industry throughout this process in order to gain acceptance of pro-
Changes to methodology posed changes to methodology. Argus cannot however guarantee
Formal proposals to change methodologies typically emerge out of universal acceptance and will act for the good order of the market
the ongoing process of internal and external review of the meth- and ensure the continued integrity of its price assessments as an
odologies. Formal procedures for external consultation regarding overriding objective.
material changes to existing methodologies will be initiated with an
announcement of the proposed change published in the relevant Following the consultation period, Argus management will com-
Argus report. This announcement will include: mence an internal review and decide on the methodology change.
This will be followed by an announcement of the decision that will
• Details on the proposed change and the rationale be published in the relevant Argus report and include a date for
• Method for submitting comments with a deadline for submis- implementation. For prices used in derivatives, publication of stake-
sions holders’ formal comments that are not subject to confidentiality and
• For prices used in derivatives, notice that all formal comments Argus’ response to those comments will also take place.
will be published after the given consultation period unless
submitter requests confidentiality

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Argus International LPG report Saudi Aramco

The Argus International LPG report is a daily report that covers the Propane
market for internationally or openly traded LPG. Official selling prices of Saudi Aramco for propane for the listed month.

Prices are for contracts under whatever general terms and conditions Butane
are accepted as the standard prevailing in that particular market. Official selling prices of Saudi Aramco for butane for the listed month.

Assessments and formulas refer to the price on the day of the pub- KPC (Kuwait)
lished report and published changes are from the previous publication.
Propane
All prices are in US dollars per tonne ($/t) unless otherwise stated. Official selling prices of Kuwait Petroleum Company for propane for
the listed month.

International comparisons Butane

Official selling prices of Kuwait Petroleum Company for butane for
Argus North Sea Index (ANSITM) the listed month.

Propane Argus AFEI™ Mideast Gulf netback

Prices are for the listed month.
Propane
ANSI is a monthly index based on the last five days of the previous The Argus AFEI™ propane Mideast Gulf netback is computed by
month Argus large cargo cif ARA assessments for propane, less a subtracting the reported daily Ras Tanura-Chiba freight assessment
freight element which is set on an annual basis. This base level ANSI for VLGC carriers from the Argus Far East Index for propane.
will be adjusted if the last five days average appears severely out of
alignment with prevailing industry sentiment. The freight element is Butane
based on average time charter rates for mid-size cargoes on North Sea The Argus AFEI™ butane Mideast Gulf netback is computed by sub-
routes. The freight element change is announced in September and is tracting the reported daily Ras Tanura-Chiba freight assessment for
applied from the October ANSI to the following September ANSI. VLGC carriers from the Argus Far East Index for butane.

Prices are also converted to euro/t using the previous calendar

month’s average European Central Bank exchange rate. Naphtha

Butane Argus International LPG includes several naphtha prices from other
Prices are for the listed month. Argus publications.

ANSI is a monthly index based on the last five days of the previous • cif northwest Europe
month Argus large cargo cif ARA assessments for butane, less a freight • cif Mediterranean
element which is set on an annual basis. This base level ANSI will be
adjusted if the last five days average appears severely out of alignment See the Argus European Products Methodology.
with prevailing industry sentiment. The freight element is based on aver-
age time charter rates for mid-size cargoes on North Sea routes. The • cfr Japan
freight element change is announced in September and is applied from • fob Mideast Gulf (LR2)
the October ANSI to the following September ANSI.
See the Argus Asia-Pacific Products Methodology.
Prices are also converted to euro/t using the previous calendar
month’s average European Central Bank exchange rate. LPG freight assessments

Sonatrach fob Bethioua Argus International LPG includes freight rates republished from
Argus Gas Freight.
Propane
Official selling price of Sonatrach for propane for the listed month. • VLGC Ras Tanura-Chiba
• VLGC Houston-Chiba propane (via Panama)
Butane • VLGC Houston-Flushing propane
Official selling price of Sonatrach for butane for the listed month.
See the Argus Gas Freight methodology.

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Northwest Europe and Mediterranean Transactions criteria for inclusion

The price is for a transaction:
Northwest Europe and Mediterranean midpoint prices are rounded
to the nearest 25¢/t. All prices are assessed at 4.30pm London time. •o  n the day
• standardised by Argus to the specifications published in the
Propane current ToT contract and to any revisions of this contract as
accepted by Argus
cif ARA (large cargoes) • for any days wholly within the delivery period 10-25 days forward
• standardised to Flushing using the ToT freight matrix for cif
The application of the market data to the methodology Price identi- basis ports of Flushing, Antwerp, Terneuzen, Canvey Island,
fication is based primarily on reported transactions, bids and offers, Le Havre, Stenungsund, and ToT freight differential criteria for
and other market data. any alternative discharge port not listed in the matrix
• with a minimum 50pc fixed price element, except in deals
In the case of the large cargo cif ARA propane assessment other market done on a naphtha-related basis
data will be derived from the forward curve for propane, or an assess- • concluded by 4:30pm London time
ment, at Argus’ discretion, if the forward price data are unavailable.
Bids and offers
Argus assesses a representative market value by constructing an Argus will include values from bids and offers in the following man-
average price for the period 10-25 days forward from ‘on the day’ ner if unmatched bids are above or unmatched offers below the
market data. price of reported trade.

In the absence of assessment-relevant trade, and in the event that Bids and offers criteria for inclusion
only assessment-relevant bids or offers are available in the market The price is for a bid or offer:
at the time of assessment or if the spread between assessment-
relevant orders is greater than $6/t, Argus will typically include a $6/t • on the day
spread between bids and offers in the assessment process. • standardised by Argus to the specifications published in the
current ToT contract and to any revisions of this contract as
In these cases, Argus may narrow that default $6/t spread for accepted by Argus
reasons including but not limited to the preservation of the accuracy • bids to have a minimum 5 day delivery range and offers to
and/or representativeness of the midpoint price or in consideration have a maximum 5 day delivery date range wholly within the
of other relevant market information. 10-25 days forward delivery period
• standardised to Flushing using the ToT freight matrix for cif
Argus assesses the price in the following manner: basis ports of Flushing, Antwerp, Terneuzen, Canvey Island,
Le Havre, Stenungsund, and ToT freight differential criteria for
Transactions any alternative discharge port not listed in the matrix
The price of a large cargo transaction that can be standardised (in • with a minimum 50pc fixed price element except in deals
Argus’ exclusive judgment) to the specifications published in the done on a naphtha-related basis
current ToT (10 days’ notice of a three-day delivery window) contract • that is firm and feasible (in the exclusive judgment of Argus)
and to any revisions of this contract as accepted by Argus, will be • adjusted to a representative value using prevailing and rel-
included in the assessment for the period of delivery. evant spreads (in the exclusive judgment of Argus)

All such transactions will be considered for inclusion in the price The highest bids and lowest offers (adjusted to a representative value)
identification process. prevailing at 4:30pm London time will be used to determine the values
for inclusion.
Argus will make use of swaps market transactions to assist in the evalu-
ation of the outright value of floating prices for deals, bids and offers. Origin: not produced in the Russian Federation or Belarus, not
blended with any product that was produced in the Russian Federa-
Argus does not establish a minimum transaction data threshold as tion or Belarus, and which can be reasonably documented as such.
this would lead to unreliable and non-representative assessments.
cif ARA (large cargoes) €/t
The Argus LPG Bulletin Board displays trade details and is available The cif ARA (large cargoes) propane price converted to €/t at the
to clients on the Argus website. European Central Bank exchange rate on the day of publication.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

fob northwest Europe (small) fca Mediterranean (rail)

Size: small cargoes (coasters) are up to 2,000t Size: rail is 400-600t
Basis: fob northwest Europe Basis: fca (rail) Lavera
Timing: cargoes for lifting 3-15 days forward Timing: railcars lifting 2-10 days forward
Specification: the fob northwest Europe small cargo assessment is Specification: railcars are for commercial grade
for pressurised vessels, up to 20pc olefins. Sulphur content of no more
than 50ppm. Propane averages
Floating-price trades will be considered for inclusion in the assessment
after conversion to a fixed-price fob basis using the relevant published cif ARA large cargo
Argus price assessment on the day of trade and, if necessary, a freight The Argus cif ARA large cargo assessment is the arithmetic average of
differential to normalise cif trades to a fob northwest Europe basis. the prices published every day in a month.

cif ARA (small) fob ARA barge

Size: small cargoes (coasters) are up to 2,000t The Argus fob ARA barge assessment is the running average in
Basis: cif ARA which the last data point will be assumed to be the data point for the
Timing: cargoes for delivery 3-15 days forward remaining days of the month.
Specification: the cif northwest Europe small cargo assessment is for
pressurised vessels, up to 20pc olefins. Sulphur content of no more Biopropane
than 50ppm. Argus International LPG includes biopropane prices republished
Origin: not produced in the Russian Federation or Belarus, not from Argus Biofuels. See the Argus Biofuels methodology.
blended with any product that was produced in the Russian Federa-
tion or Belarus, and which can be reasonably documented as such. Outright prices are published for biopropane on an fca ARA range
basis and as differentials to cif ARA large cargo and fca ARA rail
fob ARA (barge) propane prices. Month-to-date and monthly average biopropane
Size: barges are up to 1,300t price are also published.
Basis: fob ARA
Timing: barges for lifting 2-10 days forward Butane
Specification: the fob barge assessment is for pressurised vessels,
up to 20pc olefins. Sulphur content of no more than 50ppm. cif ARA (large cargoes)
Floating-price trades will be considered for inclusion in the assessment Size: large butane cargoes are 7,000-12,000t or 22,000t +/- 5pc
after conversion to a fixed-price fob basis using the relevant published Basis: cif ARA
Argus price assessment on the day of trade and, if necessary, a freight Timing: cargoes for delivery 10-25 days forward, eg: on 1 July the
differential to normalise cif trades to a fob ARA basis. delivery period will be 11-26 July. Bids must have a minimum five-day
delivery range and offers must have a maximum five-day delivery range
fca ARA (rail) wholly within the 10-25 days forward delivery period.
Size: rail is for 400-600t Specification: The large cargo butane assessment is for field grade
Basis: fca (rail) ARA mixed butane (minimum 12pc isobutane content) or normal butane,
Timing: railcars lifting 2-10 days forward fully refrigerated. Sulphur content of no more than 50ppm.
Specification: the fca (rail) ARA assessment includes commercial and
ex-terminal material. Sulphur content of no more than 50ppm. Argus uses swaps market information to assist in assigning an outright
value to floating-price bids offers and trades, and may also assess butane
cif Mediterranean (large) prices on a percentage of naphtha basis.
Size: large cargoes are 5,000-20,500t
Basis: cif Lavera In the absence of outright price indications for physical cargoes, Argus
Timing: cargoes for delivery 3-15 days forward may include in the assessment process butane swaps market information
Specification: the large cargo propane assessment is for field grade including transactions, bids and offers, if available.
(95pc) propane, fully refrigerated.
Origin: not produced in the Russian Federation or Belarus, not In the absence of assessment-relevant trade, and in the event that
blended with any product that was produced in the Russian Federa- only assessment-relevant bids or offers are available in the market
tion or Belarus, and which can be reasonably documented as such. at the time of assessment or if the spread between assessment-
relevant orders is greater than $6/t, Argus will typically include a
fob Mediterranean (small) $6/t spread between bids and offers in the assessment process. In
Size: small cargoes (coasters) are up to 4,000t these cases, Argus may narrow that default $6/t spread for reasons
Basis: fob Lavera including but not limited to the preservation of the accuracy and/or
Timing: cargoes for lifting 3-15 days forward representativeness of the midpoint price or in consideration of other
Specification: the small cargo assessment is for commercial grade. relevant market information.
Small cargo (coasters) are pressurised vessels.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Origin: not produced in the Russian Federation or Belarus, not fob Mediterranean (small)
blended with any product that was produced in the Russian Federa- Size: small cargoes (coasters) are up to 4,000t
tion or Belarus, and which can be reasonably documented as such. Basis: fob Lavera
Timing: for cargoes for lifting 3-15 days forward
cif ARA (large cargoes) €/t Specification: small cargo assessments are for commercial grade.
The cif ARA (large cargoes) butane price converted to €/t at the Small cargo (coasters) are pressurised vessels.
European Central Bank exchange rate on the day of publication.
Butane averages
fob northwest Europe (small)
Size: small cargoes (coasters) are up to 6,000t cif ARA large cargo
Basis: fob northwest Europe The Argus cif ARA large cargo assessment is the arithmetic average of
Timing: cargoes for lifting 3-15 days forward the prices published every day in a month.
Specification: the fob northwest Europe small cargo assessment
is for pressurised vessels, up to 30pc olefins. Sulphur content of no fob ARA barge
more than 50ppm. Timestamp is 4:30pm London time. The Argus fob ARA barge assessment is the running average in
which the last data point will be assumed to be the data point for the
cif ARA (small) remaining days of the month.
Size: small cargoes (coasters) are 1,800-2,500t
Basis: cif ARA Crude
Timing: cargoes for delivery 3-15 days forward
Specification: the cif northwest Europe small cargo assessment is for Argus North Sea Dated
pressurised vessels, up to 30pc olefins. Sulphur content of no more Prices are in US dollars/barrel. See the Argus Crude methodology.
than 50ppm.
Floating-price trades will be considered for inclusion in the assess- Ice Brent futures settlement
ment after conversion to a fixed-price fob basis using the relevant Prices are in US dollars/barrel. Prices are the settlement prices for the
published Argus price assessment on the day of trade. Ice Brent contract for three months forward.
Origin: not produced in the Russian Federation or Belarus, not
blended with any product that was produced in the Russian Federa-
tion or Belarus, and which can be reasonably documented as such. Eastern Europe

fob ARA (barge) fca/fot Polish ports propane

Size: barges are up to 1,200t Size: 20-500t
Basis: fob ARA Basis: fot or fca at the Polish ports of Gdansk, Gdynia or Szczecin
Timing: barges for lifting 2-10 days forward Timing: trucks lifting 1-25 days forward
Specification: the fob barge assessment is for pressurised vessels, Timestamp: prices are assessed weekly on Wednesday. Market
up to 20pc olefins. Sulphur content of no more than 50ppm. information received after 3:30pm London time may not be consid-
Floating-price trades will be considered for inclusion in the assess- ered for inclusion in the assessment
ment after conversion to a fixed-price fob basis using the relevant Off-specification or “formula” transactions are not included in the
published Argus price assessment on the day of trade. assessment

fca ARA (rail) daf western border Ukraine propane-butane mix

Size: rail is for 400-600t Unit: US dollars/tonne
Basis: fca (rail) ARA Volume: railcars, 100-1,000t
Timing: railcars lifting 2-10 days forward Basis: daf western border Ukraine, specifically the borders with
Specification: the fca (rail) ARA assessment includes commercial and Hungary, Poland and Slovakia, but excluding Romania
ex-terminal material. Sulphur content of no more than 50ppm. Timing: railcars lifting 5-30 days forward
Origin: not produced in the Russian Federation or Belarus, not
cif Mediterranean (large) blended with any product that was produced in the Russian Federa-
Size: large cargoes are 5,000-20,500t. tion or Belarus, not exported from the Russian Federation or Bela-
Basis: cif Lavera rus, and which can be reasonably documented as such
Timing: cargoes for delivery 3-15 days forward Timestamp: prices are assessed weekly on Wednesday. Market
Specification: the large cargo butane assessment is for field grade information received after 5:30pm Kyiv time may not be considered
mixed butane (minimum 20pc isobutane content), fully refrigerated. for inclusion in the assessment
Origin: not produced in the Russian Federation or Belarus, not Off-specification or “formula” transactions are not included in the
blended with any product that was produced in the Russian Federa- assessment
tion or Belarus, and which can be reasonably documented as such.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Argus Polish Domestic Index (APDI™) price: Gulf CP fob

Basis: fca Plock Timing: CP basis is the month’s CP (Saudi Contract Price) that is
Specification: the product contains on average 50pc propane and the underlying price for the CP differential. Period is the timing of
50pc butane. lifting or delivery. The fob Mideast Gulf roll date from one month
loading to the next will occur on the 1st of the month.
The APDI price is an assessment for the domestic Polish market Specification: refrigerated cargoes are of field grade quality.
calculated on deliveries to Poland from the ARA region through Size: 45,000-47,000t cargoes
sea terminals and by rail from the eastern and former Soviet Union Location: loading at Ras Tanura, Yanbu, Ras Laffan, Ruwais, Das
regions. The calculation is as follows: Island and Mina Al Ahmadi

APDI= [(ADBM*65% + ADBP*10% + (CAL + F)*5%) + (LOG/$)] Japan CP cfr

+20%OG/$, where: Timing: CP basis is the month’s CP (Saudi Contract Price) that is
• ADBM = average Argus daf Brest for mix the underlying price for the CP differential. Period is the timing of lift-
• ADBP = average Argus daf Brest for Propane ing or delivery. For refrigerated cargoes cfr Japan (CP plus), the roll
• CAL = average cif ARA for Propane date from first-half month delivery to second-half month delivery will
• F = sea freight from ARA to Stettin (is taken for 2016 as $60/mt) occur on the 10th of the previous month. The roll date from second-
• LOG = total average logistics costs from daf and to Plock (is half month delivery to first-half month delivery will occur on the 25th
taken for 2016 as 190 PLN/t) of the previous month
• $ = exchange rate PLN/USD Specification: refrigerated cargoes are of field grade quality
• OG = Orlen Gaz quotation (with 0 logistics cost) Size: 22,000t cargoes
Location: for delivery to Kawasaki/Chiba (Japan)
Logistics and freight costs are revised on an annual basis.
Argus Far East Index (propane)
Argus International LPG includes prices republished from Argus Japan cfr
Russian LPG and Condensate. The Argus Far East index is for cargoes delivered to destination
ports 25-40 days forward from the date of assessment.
Argus International LPG includes prices for Specification: refrigerated cargoes are of field grade quality
• fob Black Sea propane Size: 23,000t cargoes
• fob Black Sea butane Location: for delivery to Kawasaki/Chiba (Japan)
• fob Black Sea propane-butane mix Prices are assessed as a viable buy-sell range at the timestamp
• daf Brest propane-butane mix based on trades, bids, offers, informed market views and the perfor-
• daf Brest propane-butane mix floating premium mance of related markets.
• daf Brest propane
• daf Brest butane Market information may not be consistent regarding prevailing price
• fot Burgas (Lukoil posted) propane-butane mix levels so if contradictory information regarding a viable buy-sell
• daf Bekabad propane-butane mix range is in the market Argus will give the greatest weight to deals
for cargoes that conform to Argus’ published specification done in
See the Argus Russian LPG and Condensate methodology. the run up to the timestamp. For inclusion in the assessment, deals
must be judged by Argus to be repeatable and representative.

Asia-Pacific All bids, offers and deals to be included for Argus assessment are
to conform to Ginga standard terms.
All prices are assessed at 5pm Singapore time.
Bid and offers must be firm, made in the open market, not subject
Propane to special conditions and be valid for a period of time during which
a deal could reasonably be transacted. Argus may consider a bid
Argus Middle East Index or offer made after the last trade but before the timestamp as being
Timing: period is the timing of lifting The Argus Middle East Index more representative of the market price at the timestamp and may
will roll from one month loading to the next on the 1st of the month. take precedence in the published assessment.
Specificaiton: refrigerated cargoes are of field grade quality
Size: 45,000-47,000t cargoes In the absence of any firm bids and/or offers, Argus assesses a buy-sell
Location: loading at Ras Tanura, Yanbu, Ras Laffan, Ruwais, Das range based on information gathered from its regular survey of the
Island and Mina al Ahmadi market and other information judged by Argus to be indicative of mar-
ket values. Swaps and other derivative market information may be used
in determining forward market structure and direction and to evaluate
the outright value of floating prices deals that are reported.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

In the absence of any firm bids and/or offers, Argus assesses a buy-sell All bids, offers and deals to be included for Argus assessment are
range based on information gathered from its regular survey of the to conform to Ginga Full Cargo (Ginga II) standard terms.
market and other information judged by Argus to be indicative of mar-
ket values. Swaps and other derivative market information may be used Bid and offers must be firm, made in the open market, not subject
in determining forward market structure and direction and to evaluate to special conditions and be valid for a period of time during which
the outright value of floating prices deals that are reported. a deal could reasonably be transacted. Argus may consider a bid
or offer made after the last trade but before the timestamp as being
Timing more representative of the market price at the timestamp and it may
The assessment is an average price for the period 25-40 days from take precedence in the published assessment.
the publication date. Argus will make a price assessment for each
of the days in the 25-40 day forward period taking into account the In the absence of any firm bids and/or offers, Argus assesses a buy-sell
price structure of the physical market. range based on information gathered from its regular survey of the
market and other information judged by Argus to be indicative of mar-
Physical prices are discussed in the market for different delivery ket values. Swaps and other derivative market information may be used
periods in the 25-40 day forward period. The delivery periods are in determining forward market structure and direction and to evaluate
usually discussed as the first half and the second half of the month. the outright value of floating price deals that are reported.
So the Argus assessment for the 25-40 day forward period, should
prices be flat for each of these delivery periods, will be proportion- Timing
ate to the number of days for each half-month delivery period within The assessment is an average price for the period 25-40 days from
the 25-40 day forward period. the publication date. Argus will make a price assessment for each
of the days in the 25-40 day forward period taking into account the
A spreadsheet detailing these inputs is available on a daily basis price structure of the physical market.
from Argus on request.
Physical prices are discussed in the market for different delivery
Fixed and floating prices periods in the 25-40 day forward period. The delivery periods are
Trades that include both a fixed price and floating price component, for usually discussed as the first half and the second half of the month.
example a trade priced as a 50:50 average of the Far East Index and a So the Argus assessment for the 25-40 day forward period, should
fixed price, may be considered for inclusion in the assessment. prices be flat for each of these delivery periods, will be proportion-
ate to the number of days for each half-month delivery period within
Argus will use a variety of techniques to determine a fixed value of the 25-40 day forward period.
the deal to be considered for inclusion in the assessment. Argus A spreadsheet detailing these inputs is available on a daily basis
will use these techniques as appropriate to derive a representative from Argus on request.
value for deals that are priced on a fixed/floating price basis and
consider such deals, as warranted, in its assessments. Fixed and floating prices
Trades that include both a fixed price and floating price compo-
Note, the Argus Far East Index (propane) and the Argus Japan cfr nent, for example a trade priced as a 50:50 average of the Argus
Propane assessment are identical. Chiba Index and a fixed price, may be considered for inclusion in
the assessment.
Argus Chiba Index (propane)
The Argus Chiba Index is for cargoes delivered to destination ports Argus will use a variety of techniques to determine a fixed value of
25-40 days forward from the date of assessment. the deal to be considered for inclusion in the assessment. Argus
Specification: refrigerated cargoes are of field grade quality will use these techniques as appropriate to derive a representative
Size: 46,000t cargoes value for deals that are priced on a fixed/floating price basis and
Location: for delivery to Chiba (Japan) consider such deals, as warranted, in its assessments.

Prices are assessed as a viable buy-sell range at the timestamp Argus South China cfr Index (propane)
based on trades, bids, offers, informed market views and the perfor- Specification: refrigerated cargoes are as per original supplier’s
mance of related markets. guaranteed specification
Size: 44,000-46,000t cargoes
Market information may not be consistent regarding prevailing price Location: for delivery into the Pearl River delta (Guangzhou, Zhuhai
levels so if contradictory information regarding a viable buy-sell and Dongguan) of Guangdong province
range is in the market Argus will give the greatest weight to deals
for cargoes that conform to Argus’ published specification done in The assessment is an average price for the period 25-40 days from
the run up to the timestamp. For inclusion in the assessment, deals the publication date. Argus will make a price assessment for each
must be judged by Argus to be repeatable and representative. of the days in the 25-40 day forward period taking into account the
price structure of the physical market. Physical prices are discussed
in the market for different delivery periods in the 25-40 day forward

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

period. The delivery periods are usually discussed as the first half Butane
and the second half of the month. So the Argus assessment for the
25-40 day forward period, should prices be flat for each of these de- Argus Far East Index (butane)
livery periods, will be proportionate to the number of days for each Japan cfr
half-month delivery period within the 25-40 day forward period. The Argus Far East index is for cargoes delivered to destination
ports 25-40 days forward from the date of assessment.
The South China cfr assessment considers cargoes of worldwide ori- Specification: refrigerated cargoes meeting the specification below
gin, excluding Iran. The assessment considers bids, offers and deals Size: 23,000t cargoes
for a laycan of a minimum of five days within the 25-40 day forward Market information about 23,000t + 23,000t propane/butane,
period and a laytime of up to 72 hours for one safe port. The vessel 11,500t + 11,500t propane/butane and 23,000t butane cargoes will
arrival draught shall not exceed 12m and the vessel age shall not be considered for inclusion in the assessment.
exceed 25 years. Payment for the cargo is to be made within 7 days Origin: origins referred to in the Ginga standard terms plus Enterprise,
from the vessel’s tendered Notice of Readiness (NOR). Targa, Nederland, Marcus Hook, Tanjong Sulong and Bethioua
Location: for delivery to Kawasaki/Chiba (Japan)
Argus Ningbo Index (propane)
The price of propane that traded or could have traded using the Prices are assessed as a viable buy-sell range at the timestamp
Argus cfr Ningbo Contract for delivery 25-40 days forward from the based on trades, bids, offers, informed market views and the perfor-
date of assessment. mance of related markets.

In making its assessment, Argus considers a wide range of informa- Market information may not be consistent regarding prevailing price
tion relevant to the determination of the price of product that traded levels so if contradictory information regarding a viable buy-sell
or could have traded using the Argus cfr Ningbo Contract. That range is in the market Argus will give the greatest weight to deals
information includes but is not limited to trade, bids and offers, in- for cargoes that conform to Argus’ published specification done in
formed market views and activity in other related markets which may the run up to the timestamp. For inclusion in the assessment, deals
include information about trade involving terms other than those of must be judged by Argus to be repeatable and representative.
the Argus cfr Ningbo Contract.
To be considered for inclusion in the Argus assessment, all bids,
Size: 44,000-46,000t cargoes offers and deals are to conform to Ginga standard terms, except
those terms relating to specification, quantity and product origin,
The assessment is an average price for each of the days in the 25- which are to align with the Argus methodology.
40 day forward period, taking account of the price structure of the
physical market. Physical prices are discussed in the market for dif- Bid and offers must be firm, made in the open market, not subject
ferent delivery periods in the 25-40 day forward period. The delivery to special conditions and be valid for a period of time during which
periods are usually discussed as the first half and the second half a deal could reasonably be transacted. Argus may consider a bid
of the month. So the Argus assessment for the 25-40 day forward or offer made after the last trade but before the timestamp as being
period, should prices be flat for each of these delivery periods, will more representative of the market price at the timestamp and may
be proportionate to the number of days for each half-month delivery take precedence in the published assessment.
period within the 25-40 day forward period.
In the absence of any firm bids and/or offers, Argus assesses a buy-sell
India CP cfr range based on information gathered from its regular survey of the
The propane value of 50:50 propane:butane cargoes market and other information judged by Argus to be indicative of mar-
Timing: CP basis is the month’s CP (Saudi Contract Price) that is ket values. Swaps and other derivative market information may be used
the underlying price for the CP differential. Period is the timing of in determining forward market structure and direction and to evaluate
lifting or delivery. For refrigerated cargoes cfr India (CP Plus), the roll the outright value of floating prices deals that are reported.
date from one month delivery to the next will occur on the 1st of the
calendar month. Timing
Specification: refrigerated cargoes are of field grade quality The assessment is an average price for the period 25-40 days from
Size: 46,000t cargoes 50:50 propane:butane the publication date. Argus will make a price assessment for each
Location: cfr to two-ports New Mangalore-Haldia of the days in the 25-40 day forward period taking into account the
price structure of the physical market.
India cfr
The propane value of 50:50 propane:butane cargoes calculated as Physical prices are discussed in the market for different delivery
the sum of the Argus Middle East Index for propane and spot freight periods in the 25-40 day forward period. The delivery periods are
from Ras Tanura to New Mangalore/Haldia usually discussed as the first half and the second half of the month.
Timing: delivered one month from the date of assessment So the Argus assessment for the 25-40 day forward period, should
Size: 46,000t cargoes 50:50 propane:butane prices be flat for each of these delivery periods, will be proportion-
Location: cfr to two-ports New Mangalore-Haldia ate to the number of days for each half-month delivery period within
the 25-40 day forward period.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

A spreadsheet detailing these inputs is available on a daily basis In the absence of any firm bids and/or offers, Argus assesses a buy-sell
from Argus on request. range based on information gathered from its regular survey of the
market and other information judged by Argus to be indicative of mar-
Fixed and floating prices ket values. Swaps and other derivative market information may be used
Trades that include both a fixed price and floating price component, in determining forward market structure and direction and to evaluate
for example a trade priced as a 50:50 average of the Far East Index the outright value of floating prices deals that are reported.
and a fixed price, may be considered for inclusion in the assess-
ment. Argus will use a variety of techniques to determine a fixed Timing
value of the deal to be considered for inclusion in the assessment. The assessment is an average price for the period 25-40 days from
Argus will use these techniques as appropriate to derive a repre- the publication date. Argus will make a price assessment for each
sentative value for deals that are priced on a fixed/floating price of the days in the 25-40 day forward period taking into account the
basis and consider such deals, as warranted, in its assessments. price structure of the physical market.

Note, the Argus Far East Index (butane) and the Argus Japan cfr Physical prices are discussed in the market for different delivery
butane assessment are identical. periods in the 25-40 day forward period. The delivery periods are
usually discussed as the first half and the second half of the month.
Refrigerated butane specification So the Argus assessment for the 25-40 day forward period, should
Properties Specification Test method prices be flat for each of these delivery periods, will be proportion-
ate to the number of days for each half-month delivery period within
Propane Max 2.0 ASTM D-2163
the 25-40 day forward period.
Butane Min 95.0 ASTM D-2163
C5+ Max 2.0 ASTM D-2163
A spreadsheet detailing these inputs is available on a daily basis
Total Olefins Max 0.5 ASTM D-2163
from Argus on request.
Vapour Pressure Max 70 PSI ASTM D-2598
Copper Strip Max 1 ASTM D-1838 Fixed and floating prices
Sulphur ppm (wt) Max 30 ASTM D-3246 Trades that include both a fixed price and floating price component, for
Oil Stain Pass example a trade priced as a 50:50 average of the Argus Chiba Index
Notes: Normal C4 Max 94%, Iso C4 Max 94% and a fixed price, may be considered for inclusion in the assessment.

Argus Chiba Index (butane) Argus will use a variety of techniques to determine a fixed value of
The Argus Chiba Index is for cargoes delivered to destination ports the deal to be considered for inclusion in the assessment. Argus
25-40 days forward from the date of assessment. will use these techniques as appropriate to derive a representative
Specification: refrigerated cargoes meeting the below specification value for deals that are priced on a fixed/floating price basis and
Size: 46,000t cargoes consider such deals, as warranted, in its assessments.
Location: for delivery to Chiba (Japan)
Japan CP cfr
Prices are assessed as a viable buy-sell range at the timestamp Timing: CP basis is the month’s CP (Saudi Contract Price) that is
based on trades, bids, offers, informed market views and the perfor- the underlying price for the CP differential. Period is the timing of lift-
mance of related markets. ing or delivery. For refrigerated cargoes cfr Japan (CP plus), the roll
date from first-half month delivery to second-half month delivery will
Market information may not be consistent regarding prevailing price occur on the 10th of the previous month. The roll date from second-
levels so if contradictory information regarding a viable buy-sell half month delivery to first-half month delivery will occur on the 25th
range is in the market Argus will give the greatest weight to deals of the previous month.
for cargoes that conform to Argus’ published specification done in Specification: refrigerated cargoes are of field grade quality
the run up to the timestamp. For inclusion in the assessment, deals Size: 22,000t cargoes
must be judged by Argus to be repeatable and representative. Location: for delivery to Kawasaki/Chiba (Japan)
All bids, offers and deals to be included for Argus assessment are
to conform to Ginga Full Cargo (Ginga II) standard terms. Argus Middle East Index
Timing: period is the timing of lifting. The Argus Middle East Index
Bid and offers must be firm, made in the open market, not subject will roll from one month loading to the next on the 1st of the month
to special conditions and be valid for a period of time during which Specification: refrigerated cargoes are of field grade quality
a deal could reasonably be transacted. Argus may consider a bid Size: 45,000-47,000t cargoes
or offer made after the last trade but before the timestamp as being Location: loading at Ras Tanura, Yanbu, Ras Laffan, Ruwais, Das
more representative of the market price at the timestamp and it may Island and Mina al Ahmadi
take precedence in the published assessment.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Gulf CP fob India CP cfr

Timing: CP basis is the month’s CP (Saudi Contract Price) that is The butane value of 50:50 propane:butane cargoes
the underlying price for the CP differential. Period is the timing of Timing: CP basis is the month’s CP (Saudi Contract Price) that is
lifting or delivery. The fob Mideast Gulf roll date from one month the underlying price for the CP differential. Period is the timing of
loading to the next will occur on the 1st of the month. lifting or delivery. For refrigerated cargoes cfr India (CP Plus), the roll
Specification: refrigerated cargoes are of field grade quality date from one month delivery to the next will occur on the 1st of the
Size: 45,000-47,000t cargoes calendar month.
Location: loading at Ras Tanura, Yanbu, Ras Laffan, Ruwais, Das Specification: refrigerated cargoes are of field grade quality
Island and Mina al Ahmadi Size: 46,000t cargoes 50:50 propane:butane
Location: cfr to two-ports New Mangalore-Haldia
Argus South China cfr Index (butane)
Specification: refrigerated cargoes are as per original supplier’s India cfr
guaranteed specification The butane value of 50:50 propane:butane cargoes calculated as
Size: 44,000-46,000t cargoes the sum of the Argus Middle East Index for butane and spot freight
Location: for delivery into the Pearl River delta (Guangzhou, Zhuhai from Ras Tanura to New Mangalore/Haldia
and Dongguan) of Guangdong province Timing: delivered one month from the date of assessment
The assessment is an average price for the period 25-40 days from Size: 46,000t cargoes 50:50 propane:butane
the publication date. Argus will make a price assessment for each Location: cfr to two-ports New Mangalore-Haldia
of the days in the 25-40 day forward period taking into account the
price structure of the physical market. Physical prices are discussed 11+11 propane-butane mix
in the market for different delivery periods in the 25-40 day forward
period. The delivery periods are usually discussed as the first half Argus Mixed Index
and the second half of the month. So the Argus assessment for the Japan cfr
25-40 day forward period, should prices be flat for each of these de- The Argus Mixed Index and Argus Japan cfr assessments are for
livery periods, will be proportionate to the number of days for each cargoes delivered to destination ports 25-40 days forward from the
half-month delivery period within the 25-40 day forward period. date of assessment.
Specification: refrigerated cargoes are of field grade quality. Prices
The South China cfr assessment considers cargoes of worldwide are for a single, mixed cargo.
origin, excluding Iran. The assessment considers bids, offers and deals Size: 23,000t cargoes divided equally between propane and butane
for a laycan of a minimum of five days within the 25-40 day forward Location: for delivery into Kawasaki/Chiba (Japan)
period and a laytime of up to 72 hours for one safe port. The vessel ar-
rival draught shall not exceed 12m and the vessel age shall not exceed Prices are assessed as a viable buy-sell range at the timestamp
25 years. Payment for the cargo is to be made within 7 days from the based on trades, bids, offers, informed market views and the perfor-
vessel’s tendered Notice of Readiness (NOR). mance of related markets.

Argus Ningbo Index (butane) Market information may not be consistent regarding prevailing price
The price of butane that traded or could have traded using the levels so if contradictory information regarding a viable buy-sell
Argus cfr Ningbo Contract for delivery 25-40 days forward from the range is in the market Argus will give the greatest weight to deals
date of assessment. for cargoes that conform to Argus’ published specification done in
the run up to the timestamp. For inclusion in the assessment, deals
In making its assessment, Argus considers a wide range of informa- must be judged by Argus to be repeatable and representative.
tion relevant to the determination of the price of product that traded Bid and offers must be firm, made in the open market, not subject
or could have traded using the Argus cfr Ningbo Contract. That to special conditions and be valid for a period of time during which
information includes but is not limited to trade, bids and offers, in- a deal could reasonably be transacted. Argus may consider a bid
formed market views and activity in other related markets which may or offer made after the last trade but before the timestamp as being
include information about trade involving terms other than those of more representative of the market price at the timestamp and may
the Argus cfr Ningbo Contract. take precedence in the published assessment.

Size: 44,000-46,000t cargoes In the absence of any firm bids and/or offers, Argus assesses a buy-sell
The assessment is an average price for each of the days in the 25- range based on information gathered from its regular survey of the
40 day forward period, taking account of the price structure of the market and other information judged by Argus to be indicative of mar-
physical market. Physical prices are discussed in the market for dif- ket values. Swaps and other derivative market information may be used
ferent delivery periods in the 25-40 day forward period. The delivery in determining forward market structure and direction and to evaluate
periods are usually discussed as the first half and the second half the outright value of floating prices deals that are reported.
of the month. So the Argus assessment for the 25-40 day forward
period, should prices be flat for each of these delivery periods, will Timing
be proportionate to the number of days for each half-month delivery The assessment is an average price for the period 25-40 days from
period within the 25-40 day forward period. the publication date. Argus will make a price assessment for each

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

of the days in the 25-40 day forward period taking into account the ket values. Swaps and other derivative market information may be used
price structure of the physical market. in determining forward market structure and direction and to evaluate
the outright value of floating prices deals that are reported.
Physical prices are discussed in the market for different delivery
periods in the 25-40 day forward period. The delivery periods are Timing
usually discussed as the first half and the second half of the month. The assessment is an average price for the period 25-40 days from
So the Argus assessment for the 25-40 day forward period, should the publication date. Argus will make a price assessment for each
prices be flat for each of these delivery periods, will be proportion- of the days in the 25-40 day forward period taking into account the
ate to the number of days for each half-month delivery period within price structure of the physical market.
the 25-40 day forward period.
Physical prices are discussed in the market for different delivery
A spreadsheet detailing these inputs is available on a daily basis periods in the 25-40 day forward period. The delivery periods are
from Argus on request. usually discussed as the first half and the second half of the month.
So the Argus assessment for the 25-40 day forward period, should
Fixed and floating prices prices be flat for each of these delivery periods, will be proportion-
Trades that include both a fixed price and floating price component, ate to the number of days for each half-month delivery period within
for example a trade priced as a 50:50 average of the Far East Index the 25-40 day forward period.
and a fixed price, may be considered for inclusion in the assess-
ment. Argus will use a variety of techniques to determine a fixed A spreadsheet detailing these inputs is available on a daily basis
value of the deal to be considered for inclusion in the assessment. from Argus on request.
Argus will use these techniques as appropriate to derive a repre-
sentative value for deals that are priced on a fixed/floating price Fixed and floating prices
basis and consider such deals, as warranted, in its assessments. Trades that include both a fixed price and floating price component, for
example a trade priced as a 50:50 average of the Argus Chiba Index
Note, the Argus Mixed Index and Japan cfr 11+11 propane/butane and a fixed price, may be considered for inclusion in the assessment.
mix price assessments are identical. Argus will use a variety of techniques to determine a fixed value of
the deal to be considered for inclusion in the assessment. Argus
Argus Chiba Index (mixed) will use these techniques as appropriate to derive a representative
The Argus Chiba Index is for cargoes delivered to destination ports value for deals that are priced on a fixed/floating price basis and
25-40 days forward from the date of assessment. consider such deals, as warranted, in its assessments.
Specification: refrigerated cargoes are of field grade quality. Prices
are for a single, mixed cargo. Propane pressurised
Size: 46,000t cargoes
Location: for delivery to Chiba (Japan) South China CP fob
Timing: CP basis is the month’s CP (Saudi Contract Price) that is the
Prices are assessed as a viable buy-sell range at the timestamp underlying price for the CP differential. Period is the timing of lifting
based on trades, bids, offers, informed market views and the perfor- or delivery. For pressurised cargoes (CP plus), the roll date from one
mance of related markets. month loading to the next will occur on the 20th of the previous month.
Size: 1,500-2,500t
Market information may not be consistent regarding prevailing price Location: for loading from Zhuhai, Shenzhen and Dongguan, south
levels so if contradictory information regarding a viable buy-sell China
range is in the market Argus will give the greatest weight to deals Specification: pressurised cargoes are for deliveries of propane
for cargoes that conform to Argus’ published specification done in from 30-50:50-70 propane:butane cargoes.
the run up to the timestamp. For inclusion in the assessment, deals
must be judged by Argus to be repeatable and representative. South China fob
All bids, offers and deals to be included for Argus assessment are Size: 1,500-2,500t
to conform to Ginga Full Cargo (Ginga II) standard terms. Location: loading from Zhuhai, Shenzhen and Dongguan, south
China
Bid and offers must be firm, made in the open market, not subject Timing: for pressurised cargoes fob, the loading window is 5-20
to special conditions and be valid for a period of time during which days from the date of publication.
a deal could reasonably be transacted. Argus may consider a bid Specification: pressurised cargoes are for deliveries of propane
or offer made after the last trade but before the timestamp as being from 30-50:50-70 propane:butane cargoes
more representative of the market price at the timestamp and it may
take precedence in the published assessment. South China CP cfr
Timing: CP basis is the month’s CP (Saudi Contract Price) that is
In the absence of any firm bids and/or offers, Argus assesses a buy-sell the underlying price for the CP differential. Period is the timing of
range based on information gathered from its regular survey of the lifting or delivery. For pressurised cargoes cfr the delivery window is
market and other information judged by Argus to be indicative of mar- 7-15 days from the date of publication. For pressurised cargoes (CP

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

plus), the roll date from one month delivery to the next will occur on South China cfr
the 20th of the previous month. Size: 1,500-2,500t
Size: 1,500 to 2,500t Location: for delivery into Zhuhai and Sherkou, south China
Location: for delivery into Zhuhai and Sherkou, south China Timing: for pressurised cargoes cfr, the delivery window is 12-20
Specification: pressurised cargoes are for deliveries of propane days from the date of publication
from either 20:80 or 30:70 propane:butane cargoes Specification: pressurised cargoes are for deliveries of butane
from either 20:80 or 30:70 propane:butane cargoes
South China cfr
Size: 1,500-2,500t Vietnam CP cfr
Location: delivery into Zhuhai and Sherkou, south China Size: 1,000-2,500t
Timing: for pressurised cargoes cfr, the delivery window is 12-20 Location: for delivery into Hai Phong, north Vietnam
days from the date of publication Timing: for pressurised cargoes cfr, the delivery window is 12-20
Specification: pressurised cargoes are for deliveries of propane days from the date of publication. For pressurised cargoes (CP
from either 20:80 or 30:70 propane:butane cargoes plus), the roll date from one month delivery to the next will occur on
the 15th of the previous month
Vietnam CP cfr Specification: pressurised cargoes are for deliveries of 30-50:50-
Size: 1,000-2,500t 70 propane:butane cargoes.
Location: for delivery into Hai Phong, north Vietnam
Timing: the delivery window is 12-20 days from the date of publica-
tion. For pressurised cargoes (CP plus), the roll date from one month China wholesale propane/butane mix
delivery to the next will occur on the 15th of the previous month
Specification: Pressurised cargoes are for deliveries of 30-50:50- Prices are published in yuan/tonne. Specification is propane-butane
70 propane:butane cargoes. mix, typically in propane-butane ratio of 30:70 or 40:60 for residen-
tial-grade quality.
Butane pressurised
Pearl River Delta Index
South China CP fob The Argus Pearl River Index is calculated as a volume-weighted
Timing: CP basis is the month’s CP (Saudi Contract Price) that is the average of assessed ex-terminal sales prices at six terminals
underlying price for the CP differential. Period is the timing of lifting
or delivery For pressurised cargoes (CP plus), the roll date from one • Jovo Energy, Dongguan
month loading to the next will occur on the 20th of the previous month. • Chinagas, Nansha
Size: 1,500-2,500t • Sinobenny, Dapeng
Location: for delivery from Zhuhai, Shenzhen and Dongguan, south • New Ocean, Gaolan
China • Siamgas, Gaolan
Specification: pressurised cargoes are for deliveries of butane • CNOOC, Gaolan
from 30-50:50-70 propane:butane cargoes.
For each location, the prices of spot and short-term sales are as-
South China fob sessed each day. The Pearl River Delta Index is an average of the
Size: 1,500-2,500t assessed spot and short-term prices weighted based on a daily
Location: for loading from Zhuhai, Shenzhen and Dongguan, south discussion of sales prices and volumes with market participants.
China Ex-terminal south China
Timing: for pressurised cargoes fob, the loading window is 5-20 Prices are also published for locations in the region. For each loca-
days from the date of publication. tion, the prices of spot and short-term sales are assessed each day.
Specification: pressurised cargoes are for deliveries of butane Each locational assessment is the average of those spot and short-
from 30-50:50-70 propane:butane cargoes term prices weighted based on a daily discussion of sales prices
and volumes with market participants.
South China CP cfr
Timing: CP basis is the month’s CP (Saudi Contract Price) that is •D  ongguan - based on data gathered at Jovo Energy, Dongguan
the underlying price for the CP differential. Period is the timing of • Zhuhai - based on data gathered at New Ocean, Gaolan;
lifting or delivery. For pressurised cargoes cfr, the delivery window is Siamgas, Gaolan; and CNOOC, Gaolan
7-15 days from the date of publication. For pressurised cargoes (CP • Shenzhen - based on data gathered at Sinobenny, Dapeng
plus), the roll date from one month delivery to the next will occur on • Nansha - based on data gathered at Chinagas, Nansha
the 20th of the previous month • Raoping - based on data gathered at Ohwa Energy, Raoping
Size: 1,500-2,500t size • Shantou - based on data gathered at Siamgas Shantou
Location: for delivery into Zhuhai and Sherkou, south China • Yangjiang - based on data gathered at CNOOC Yangjiang
Specification: pressurised cargoes are for deliveries of butane
from either 20:80 or 30:70 propane:butane cargoes

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Posted sales prices Argus Middle East Index

Argus also publishes posted sales prices for wholesale propane/ • Propane
butane mix. • Butane

Prices are published in yuan/tonne. Specification is propane-butane Argus Far East Index
mix, typically in propane-butane ratio of 30:70 or 40:60 for residen- • Propane
tial-grade quality. • Propane differential to front-month AFEI propane swaps (diff
to M1)
East China • Butane
• 11+11 propane-butane mix
Ex-terminal
• Fujian Argus Chiba Index
• Ningbo • Propane
• Shandong • Butane
• Wenzhou • 23+23 propane-butane mix
• Zhangjiagang
Argus South China Index
Ex refinery • Propane
• Shanghai • Butane
• Zhenhai
• Yangzi Argus Ningbo Index
• Fujian • Propane
• Gaoqiao • Butane
• Qingdao
Pearl River Delta index
South China • Propane-butane mix

Ex refinery
• Maoming Africa LPG indexes
• Guangzhou
South Africa LPG index
Northeast China Prices are in US dollars/tonne. The South Africa LPG index is the
calculated value of LPG cargoes delivered to Richards Bay, South
Ex refinery Africa, including logistics costs and the underlying prices of pro-
• Daqing pane and butane exported from the Middle East.
• Dalian
Calculated as the Argus Middle East Index for propane and butane in a
Northwest China ratio of 60:40, plus freight from Ras Tanura to Richards Bay, the cost of
bunker fuel, port and brokerage fees and ship-to-ship transfer costs.
Ex refinery
• Urumuqi Calculation components:
All calculation components are updated daily, unless specified.
Inland China • Propane Argus Middle East Index
• Butane Argus Middle East Index
Ex refinery • Fuel oil bunker 0.5%S 380cst Fujairah ($/t) – see the Argus
• Yan-An Asia-Pacific Products methodology.
• USD/ZAR exchange rate – sourced by Argus at 11am London
time. When unavailable owing to a London holiday, the last
Middle East and Asia-Pacific averages available rate is used.
• Time-charter rate for 35,000-38,000m³ vessels – basis 12
Prices are the average of those published during the named calen- months (updated weekly). Argus updates this rate weekly, in
dar month: consultation with the market.
• Costs of keeping a 35,000-38,000m³ vessel berthed in, or
Middle East Gulf (Gulf CP fob) near, Richards Bay for 42 days based on pro-rated time-char-
• Propane ter rate assessments
• Butane • South Africa flat port fee – updated annually, on or around 1 April
by Transnet National Ports Authority. Port fees are subject to VAT.
• South Africa daily port fee – updated annually, on or around 1

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

April by Transnet National Ports Authority. Port fees are subject Propane delivered east Africa
to VAT. Calculated as the Propane Argus Middle East Index plus a weekly
Note, South Africa port fees include multiple discharges assessment of freight and an annual assessment of other logistics
• Costs of bunkering at Durban including a round trip of 10 costs for the Ras Tanura-Mombasa route.
hours + 4 hours for bunkering + cost of 0.5%S bunker fuel in
Durban, including the cost of fuel consumption in transit Butane delivered east Africa
• Ras Tanura port fees, based on a 21,000t cargo – according Calculated as the Butane Argus Middle East Index plus a weekly
to the Kingdom of Saudi Arabia General Corporation of Ports assessment of freight and an annual assessment of other logistics
• The resulting delivered South Africa LPG Index is published costs for the Ras Tanura-Mombasa route.
daily according to the Singapore publishing schedule. Argus
also publishes a month-to-date average of the index. West Africa netbacks
Prices are in US dollars/tonne and are calculated as the published
Butane, delivered west Africa delivered Asia-Pacific price less the Argus freight rate.
Prices are in US dollars/tonne. The butane, delivered west Africa as-
sessment is the calculated value of butane cargoes delivered to Lagos, •P  ropane Argus Far East Index less the Bonny-Chiba freight rate
Nigeria, and is calculated as the lowest of two derived values. • Butane Argus Far East Index less the Bonny-Chiba freight rate

Northwest Europe butane delivered west Africa Monthly averages are also published. See the Argus Gas Freight
Calculated as the Argus cif ARA large cargo butane price assess- methodology for a description of the freight rate.
ment plus the Rotterdam-Lagos calculated MGC freight rate.
Timing
US Gulf coast butane delivered west Africa Indexes are calculated and published daily, except on days when
Calculated as the Argus USGC butane fob price assessment plus Singapore, London or US price assessments are not produced.
the Houston-Lagos calculated MGC freight rate.
Monthly averages
See the Argus NGL Americas methodology for the description of the Prices are the average of those published during the named calen-
USGC butane price assessment and the Argus Gas Freight meth- dar month:
odology for a description of relevant freight rates.
• Argus East Africa LPG Index (KES/kg, USD/t)
Propane, delivered west Africa • Argus South Africa LPG Index (ZAR c/kg, USD/t)
Prices are in US dollars/tonne. The propane, delivered west Africa • Argus West Africa butane index (NGN/kg, USD/t)
assessment is the calculated value of propane cargoes delivered to • Argus West Africa propane index (NGN/kg, USD/t)
Lagos, Nigeria, and is calculated as the lowest of two derived values.
Americas
Northwest Europe propane delivered west Africa
Calculated as the Argus cif ARA large cargo propane price assess- A full methodology for the Americas assessments published in
ment plus the Rotterdam-Lagos calculated MGC freight rate. Argus International LPG can be found in the Argus NGL Americas
methodology.
US Gulf coast propane delivered west Africa
Calculated as the Argus USGC propane fob price assessment plus Mont Belvieu pipeline fob
the Houston-Lagos calculated MGC freight rate.
Enterprise
See the Argus NGL Americas methodology for the description of • Propane
the USGC propane price assessment and the Argus Gas Freight • Propane equivalent ($/t): prices are in US dollars/tonne. The
methodology for a description of relevant freight rates. conversion factor is 521 USG/t
• Butane
LPG 15:85 delivered east Africa • Butane equivalent ($/t):prices are in US dollars/tonne. The
Prices are in US dollars/tonne. The LPG 15:85 delivered east Africa conversion factor is 453 USG/t
assessment is the calculated value of a mixed cargo of propane • Purity ethane
and butane delivered to Mombasa, Kenya, and is calculated as the • Purity ethane $/t equivalent: prices are in US dollars/tonne.
weighted sum of two derived values. The conversion factor is 737.99 USG/t
• Ethane-propane mix
Propane delivered east Africa * 0.15 + butane delivered east Africa • Isobutane
* 0.85 • Natural gasoline
• USGC export fob, diff to Mont Belvieu
• USCG export fob ($/t)

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

LST of the month before the start of the quarter. Timestamp is 4.30pm
• Propane London time.
• Butane
Propane CP Middle East
Targa The minimum swap volume for the CP swaps is 2,000t. Propane
• Propane contract price swaps are assessed twice each day, at a 5pm Singa-
• Purity Ethane pore timestamp and a 4.30pm London timestamp.

Argus AFEI™ netbacks Prices are assessed for three months of the Contract Price (CP) at
• AFEI™ propane USGC netback the 5pm Singapore timestamp. Prices are assessed for 12 months
• Propane AFEI™ Edmonton netback and four quarters of the CP at the 4.30pm London timestamp.
• Propane AFEI™ RIPET netback: prices are in US dollars/
tonne. Calculated by subtracting from the physical Argus The front month rolls on the first working day on which the new CP
Far East Index™ propane price the calculated VLGC freight is available. For example, if the October CP is issued on 29 Septem-
cost between the Prince Rupert Ridley Island Propane Export ber, the swaps front month will roll from October to November that
Terminal (Ripet) and Chiba, Japan. day. Swap quarters roll on the first working day on which the CP has
been announced for two months of the quarter.
US Enterprise averages
Butane CP Middle East
• Propane The minimum swap volume for the CP swaps is 1,000t. Butane con-
• Butane tract price swaps are assessed at a 5pm Singapore timestamp.

US forward market Prices are assessed for one forward month of the Contract Price
(CP) at the 5pm Singapore timestamp.
Mont Belvieu
The Mont Belvieu propane and butane forward curves are the value The front month rolls on the first working day on which the new CP is
of the swap futures markets at the time of the Nymex close, typically available. For example, if the October CP is issued on 29 September,
2:30pm New York time. The bid is the highest available bid. The offer the swaps front month will roll from October to November that day.
is the lowest available offer. The mean is the midpoint of the two.
Argus Far East Index propane
Delivered Brazil The minimum swap volume for the Argus Far East Index propane
The calculated price of US propane and propane-butane mixes deliv- swaps is 2,000t.
ered to the Brazilian ports of Suape and Santos from the US.
Argus Far East Index propane swaps prices are assessed twice
For each port, prices are published for each day, at a 5pm Singapore timestamp and a 4.30pm London
• 100% propane timestamp.
• 90% propane:10% butane
• 70% propane:30% butane Prices are assessed for three months of the Argus Far East Index at
• 50% propane:50% butane the 5pm Singapore timestamp.

The first forward month at the 5pm Singapore timestamp is as-

International swaps prices sessed as a volume-weighted average of trades done in the minute
leading up to and including 5:00:00pm Singapore time, rounded to
Propane northwest Europe the nearest 25¢/t.
Swaps in northwest Europe are for 12 months and four quarters for-
ward. The front month rolls on the first working day after the 15th of the Prices are assessed for 12 months and four quarters of the Argus
month. Swap quarters roll on the first working day after the 15th of the Far East Index at the 4.30pm London timestamp.
second month of the quarter. Timestamp is 4:15-4:30pm London time.
The front month rolls on the first working day after the 15th of the
Prices for the first and/or second forward month, depending on month. Swap quarters roll on the first working day after the 15th of
which is used as the floating price component of physical trade, are the second month of the quarter.
calculated as a volume-weighted average of trade, rounded to the
nearest 25¢/t, with a minimum 2,000t transaction size. Argus Far East Index butane
The minimum swap volume for the Argus Far East Index butane
Naphtha northwest Europe swaps is 2,000t.
Swaps in northwest Europe are for 12 months and four quarters for-
ward. The front month rolls on the first working day after the 15th of Prices are assessed for one forward month at the 5pm Singapore
the month. Swap quarters roll on the first working day after the 15th timestamp. The front month rolls on the first working day of the month.

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METHODOLOGY AND SPECIFICATIONS GUIDE February 2025

Mont Belvieu LST AFEI-CP

Prices are in US dollars/tonne converted from US cents/gallon. Prices are in US dollars/tonne. The Argus Far East Index propane
Mont Belvieu propane swaps assessments are for 12 months and swap minus the CP propane swap.
four quarters forward. The front month rolls on the first working day
after the 15th of the month. Swap quarters roll on the first working Butane-Propane CP swaps differential
day after the 15th of the second month of the quarter. Timestamp is Prices are in US dollars/tonne. The Argus butane CP Middle East
4.30pm London time. front-month swap minus the Argus propane CP Middle East front-
month swap.
65 para cif northwest Europe naphtha
Swaps in northwest Europe are for 12 months and four quarters for-
ward. The front month rolls on the first working day after the 15th of LNG assessments
the month. Swap quarters roll on the first working day after the 15th
of the month before the start of the quarter. Timestamp is 4.30pm Argus International LPG includes a weekly northwest Europe
London time. small-scale LNG free on truck price assessment, published on
Thursday in energy (€/MWh) and tonnes of propane equivalent ($/t
Spreads propane equivalent). The conversion to tonnes of propane equiva-
lent is based on a propane energy content of 50.4MJ/kg.
M1 diff to physical See the Argus LNG Daily methodology for details.
Prices are in US dollars/tonne. This is the difference between the
assessed physical or wet value and the front-month swap.

• Cif ARA propane minus cif ARA propane swap

• Cif northwest Europe naphtha minus European naphtha swap
• Fob Middle East Gulf propane minus CP swap
• Argus Far East Index propane minus Argus Far East Index
propane swap (Singapore swaps timestamp). A monthly aver-
age is also published.
• Argus Far East Index propane minus Argus Far East Index
propane swap (London swaps timestamp)
• Mont Belvieu LST propane mean of high/low minus Mont
Belvieu propane swap

Propane-naphtha
Prices are in US dollars/tonne. The cif ARA propane swap minus the
European naphtha swap.

East-West
Prices are in US dollars/tonne. The Argus Far East Index propane
swap minus the cif ARA propane swap.

The Arb
Prices are in US dollars/tonne. The Mont Belvieu propane swap
minus the cif ARA propane swap.

Mont Belvieu-AFEI
Prices are in US dollars/tonne. The Mont Belvieu propane swap
minus the Argus Far East Index propane swap.

20 www.argusmedia.com