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
datasources
Potential impact
on data
Changes to data attributes,
replacement of products
By Vera Tikhomolova
The Future of the
Natural Gas Market
Part One: Macro Drivers of Supply
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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July 2014
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, andZambia 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 onXetra 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 ApplicationUpgraded 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 BGCPartners 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 201415-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
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More LNG from This Side
of the Pacifc 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 Canadas 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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Editor
Olga Gorstenko
Phone: 778-296-4183 Email: olga@ze.com
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, thats 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 months 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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Email: bruce.c@ze.com
Have an idea for an article or would like to
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Write to us at datawatch@ze.com
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Bruce Colquhoun, Phone: (604) 790-3299
Email: bruce.c@ze.com
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Platts Introduces Turkish Monthly Power Assessments
On 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, ZEs 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 ZEMAs data coverage,
visit http://www.ze.com/the-zema-solutions/data-coverage/.
July 2014 6
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July 2014 7
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Argus Introduces New Assessments
in European Electricity
On 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 5
th
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 Code
Time
Stamp
Price
Type
Continuous
Forward
Description
PA0012600 6 1 5
UK OTC
base load
month
PA0012600 6 2 5
UK OTC
base load
month
PA0012607 6 1 5
UK OTC
peak load
month
PA0012607 6 2 5
UK OTC
peak load
month
For more information on European electricity prices, view ZEMA, ZEs
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 ZEMAs data
coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.
WattEx Launched on New NGX
TradePath Platform
On 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, ZEs 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 Application
On 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 states
renewable energy resources, which helps market
participants track renewable interconnections. Finally, it
has a day-ahead wholesale energy price map.
July 2014 8
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NGX Expands Product Offering in ERCOT Market
On 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
Argus Removes UK Assessments
On 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 2
nd
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
July 2014 9
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Platts to Publish Russia Jet Fuel Export Duty
On 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, ZEs 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 Assessment
On 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 Assessments
On 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 ZEMAs replete library of crude market intelligence, visit
Platts to Introduce 500 CST
Rotterdam Bunker Assessment
On 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 Plattss Europe and Africa
Refined Oil Products Methodology and Specifications
Guide. The new assessment conforms to Plattss 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 Plattss new assessment. To learn more, visit
Platts Begins New Asia Dirty
Tanker Assessments
On 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 assessmentsEast Coast India to Singapore;
Singapore to Chittagong; and Singapore to Japanreflect
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 Assessment
On 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 15
th
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 Publication
On 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 Ports
On July 21, 2014, Argus introduced new daily assessments for Gasoline A-92 fca Ukrainian ports in Argus
(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/.
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Argus Creates Additional Jet Fuel Series
On 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 offine cycle
Argus Adds Diesel and Jet Fuel Assessments to US Products
On 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 Publication
On 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.
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NYMEX Lists New Crude Oil Weekly Options on CME ClearPort
On 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 Futures
On 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 DMEs 12:30 p.m. marker price. The average
of the months 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
Dubais crude oil export price but who may not necessarily want to trade during DMEs 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, ZEs data management solution for oil market participants, collects over 650 oil records on a daily basis. To learn more about how to leverage
ZEMAs rich library of oil market intelligence, visit http://www.ze.com/the-zema-suite/.
Created with ZEMA
July 2014 14
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Platts to Cease Japan Petchems Export Prices in Yen/Kg
On 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 Duty
On January 2, 2015, Platts will stop publishing its Russian light ends export duty. This announcement follows
Plattss proposal on June 17 to discontinue the value. This export duty represents an average, calculated by
Platts, of Russias individual naphtha and gasoline export duties. The duties for both products will continue to be
published on their own.
Platts Removes Japan Domestic Polymers Assessments
On 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
July 2014 15
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Platts Discontinues Urals CFD Outrights
On 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 Assessments
On July 21, 2014, Argus removed several Ukrainian gasoline assessments from its Argus
(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 Assessments
On 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
July 2014 16
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Argus Removes Gasoil Bunker Rotterdam Assessments
On 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 Curve
On 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 Refect New Russia Rail Tariffs in Netbacks
On 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.
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Platts Proposes to Expand FOB Singapore Assessments to FOB Straits
On 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 pl_asia_oilproducts@platts.com and pricegroup@platts.com.
Argus Renames Ukrainian Gasoline Assessments
On July 21, 2014, Argus renamed a series of Ukrainian gasoline assessments located in Argus
(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 Ilovaisk
Gasoil diesel summer 10ppm fca
Kharkov/fca Donetsk
PA0013000 Gasoil diesel winter 10ppm fca Ilovaisk
Gasoil diesel winter 10ppm fca
Kharkov/fca Donetsk
Argus Changes Differential Basis for Gasoil Bunker Rotterdam Assessments
On 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.
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 Contracts
On 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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NYMEX Expands Listing Schedule for Six Brent Futures and Options Contracts
On 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 Title
CME
Globex
Code
Rulebook
Chapter
Current CME Globex
Listing Schedule
Amended CME Globex
Listing Schedule
Brent Crude Oil Option OSX 376
Consecutive monthly contracts
are listed for 36 months
Unchanged
Brent Crude Oil European
Financial Option
BE 378
Unchanged
Brent Crude Oil Average
Price Option
BA 379
Unchanged
Brent Crude Oil Penultimate
Financial Futures
BB 692
Consecutive 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 696
Consecutive monthly
Brent Crude Oil Last Day
Financial Futures
BZ 698
Consecutive monthly
Brent Crude Oil Option OS 376
Consecutive monthly
Brent Crude Oil European
Financial Option
BE 378
Consecutive monthly
July 2014 20
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Contract Title
CME
Globex
Code
Rulebook
Chapter
Current CME Globex
Listing Schedule
Amended CME Globex
Listing Schedule
Brent Crude Oil Average
Price Option
BA 379
Consecutive monthly
Brent Crude Oil Penultimate
Financial Futures
BB 692
Consecutive monthly
Brent Financial Futures CY 696
Consecutive monthly
Brent Crude Oil Last Day
Financial Futures
BZ 698
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. ZEMAs powerful visualization functionalities enable
analysts to reveal hidden relations between the products they are interested in.
Created with ZEMA
July 2014 21
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New Argus Brent 901 Index
On 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 Series
On 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, ZEs 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/.
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Argus 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 solutions 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/.
Created with ZEMA
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Argus Adds New Series to International LPG Publication
On 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 Americas
On 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 ClearPort
On 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.
Created with ZEMA
July 2014 24
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Assessment Descriptions in Argus International LPG Change
On 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
PA0000391
Ethane/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 Publication
On July 14, 2014, the names of several assessments in Arguss Natural Gas Americas publication were revised.
Changes apply to the dnga data files in the /DNGA folder of server ftp.argusmedia.com.
PA0010900
Frac spread Ethane Mt Belvieu non-LST
(usc/usg)
Frac spread Ethane Mt Belvieu Enterprise (Usc/usg)
PA0010901
Frac spread Propane Mt Belvieu Non-LST
(usc/usg)
Frac spread Propane Mt Belvieu Enterprise (usc/usg)
PA0010902
Frac spread Butane Mt Belvieu Non-LST
(usc/usg)
Frac spread Butane Mt Belvieu Enterprise (usc/usg)
PA0010903
Frac spread Isobutane Mt Belvieu Non-LST
(usc/usg)
Frac spread Isobutane Mt Belvieu Enterprise (usc/usg)
PA0010904
Frac spread Natural Gasoline Mt Belvieu
Non-LST (usc/usg)
Frac spread Natural Gasoline Mt Belvieu Enterprise
(usc/usg)
PA0010905
Frac spread Ethane Mt Belvieu Non-LST
($/MnBtu)
Frac spread Ethane Mt Belvieu Enterprise ($/MnBtu)
PA0010906
Frac spread Propane Mt Belvieu Non-LST
($/MnBtu)
Frac spread Propane Mt Belvieu Enterprise ($/MnBtu)
PA0010907
Frac spread Butane Mt Belvieu Non-LST
($/MnBtu)
Frac spread Butane Mt Belvieu Enterprise ($/MnBtu)
PA0010908
Frac spread Isobutane Mt Belvieu Non-LST
($/MnBtu)
Frac spread Isobutane Mt Belvieu Enterprise ($/MnBtu)
PA0010909
Frac spread Natural Gasoline Mt Belvieu
Non-LST ($/MnBtu)
Frac spread Natural Gasoline Mt Belvieu Enterprise
($/MnBtu)
Argus Revises Descriptions for Assessments in NGL Americas Publication
On 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.
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Platts Adds Daily Coal Switching Price Indicator for the Netherlands and UK
On 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 Plattss CSPIs, view ZEMAs
Platts records and coal records. To learn more, visit http://www.ze.com/the-zema-solutions/.
Argus Renames Metallurgical Coal Assessment
On June 24, 2014, Argus renamed the following metallurgical coal assessment in its Argus Steel Feedstocks
publication and data module.
PA0010871
Metallurgical Coal fob Colombia Caribbean
Terminals mid-vol within 90 days
Metallurgical Coal fob Colombia mid-vol within 90 days
July 2014 26
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Platts Proposes Chicago ITT Argo
Any-Month Ethanol Assessment
On 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 solutions vast data library,
visit http://www.ze.com/the-zema-solutions/data-coverage/.
Platts to Launch CIF NWE Industrial
Wood Pellet Assessment
On 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. ZEMAs 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/.
July 2014 27
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Argus Adds Ammonium Sulphate and Urea Assessments to Fertilizer Publication
On 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 ClearPort
On 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 ZEMAs data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.
LBMA Silver Price Solution to Be Determined by CME Group and Thomson Reuters
On 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 LBMAs 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.
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Platts Discontinues Tubular Market
Report Data File
On 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 Price
Following 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 Fix
On 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
MetalsDaily.
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 Report
On 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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Moreover, 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 Brazils 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 Assessments
On 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 Price
On 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 ClearPort
On 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, ZEs data management solution. To learn more, visit
Created with ZEMA
July 2014 31
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Thomson Reuters Provides Currency
Benchmarks for Kenya, Ghana,
andZambia
On July 22, 2014, Thomson Reuters announced that
it has won a competitive process to provide currency
benchmarks for three of Africas 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, ZEs 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 Indices
On 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 TSX
On 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, Canadas leading equity benchmark, while
taking into account each companys 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.
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Eurex to Launch Variance Futures
Based on EURO STOXX 50
On 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
bepublished.
The minimum order size will be 1 notional Vega and
minimum price change will be 0.05 volatility points.
ETF Securities Lists New ETNs
onXetra
On 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 shortis 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, ZEs 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
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 ZEMAs vast data coverage, visit
http://www.ze.com/the-zema-solutions/data-coverage/.
July 2014 33
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Two New SPDR ETFs Launched on Xetra
On 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 ISIN
Total Expense
Ratio
Distribution
Policy
Benchmark
SPDR Russell 3000 U.S. Total
Market UCITS ETF
Equity index ETF IE00BKY7WX37 0.25% Non-distributing
Russell 3000
Index
SPDR Russell 2000 U.S. Small
Cap UCITS ETF
Equity index ETF IE00BJ38QD84 0.30% Non-distributing
Russell 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 Xetra
On 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.
Total Expense
Ratio
Distribution
Policy
Benchmark
UBS ETF FTSE 250 UCITS ETF
(GBP) A-dis
Equity index ETF LU1048312737 0.25% Distributing
FTSE 250 Total
Return
UBS ETF MSCI Europe ex UK
UCITS ETF (EUR) A-dis
Equity index ETF LU1048312067 0.20% Distributing
MSCI 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 Europes 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 Brse about derivatives products. To learn more about how ZEMA can leverage Deutsche Brse market
data, visit http://www.ze.com/the-zema-suite/.
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Lyxor UCITS ETF German Mid-Cap MDAX Launched on Xetra
On June 19, 2014, a new exchange-traded equity index fund issued by Lyxor Asset Management became
tradable in the XTF segment of Xetra.
Total Expense
Ratio
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, ZEs 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 Futures
On 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 Options
On 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, Markits 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.
July 2014 35
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Barchart Mobile
ApplicationUpgraded
On 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 markets 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 ZEMAs power to collect, aggregate,
and transform Barchart equity options data, visit
Bahrain Bourse Introduces New
Trading Engine Powered by
NASDAQ OMX
On July 21, 2014, Bahrain Bourse and NASDAQ OMX
announced that Bahrain Bourse has launched its new
trading engine, which is powered by NASDAQ OMXs
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 Singapore
On 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.
July 2014 36
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Thomson Reuters Increases OTC Data Coverage through Partnership with
BGCPartners
On July 23, 2014, Thomson Reuters and BGC Partners, Inc. announced a strategic agreement to expand
customer access to OTC pricing data. BGCs 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 BGCs 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 Indexes
On 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, Eurexs 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 Swaps
On 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/DGS
Dow Jones-UBS Commodity Index Swaps
(Cleared OTC)
Bloomberg Commodity Index Swaps
(Cleared OTC)
DG2/DG2
Dow Jones-UBS Commodity Index 2-Month Forward
Index Swap
Bloomberg Commodity Index 2-Month
Forward Swaps (Cleared OTC)
DG3/DG3
Dow 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 Futures
Bloomberg Roll Select Commodity
Index Futures
July 2014 37
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Argus: 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
July 2014 38
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Bloomberg Takes Control of Dow
Jones-UBS Commodity Index
On July 1, 2014, Bloomberg took over UBSs
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 Bloombergs takeover of
the Dow Jones-UBS Commodity Index will impact data, use ZEMA,
ZEs 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 Product
On June 24, 2014, Bloombergs 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 organizations
internal systems and downstream systems. Find out how ZEMA can
make big data management easier and faster by visiting
NOAA Introduces New PORTS
Real-Time Data System to Aid
Maritime Shipping Processes
On 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/.
New Data Reports from ZEMA
At 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 Subscription
AESO 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
July 2014 39
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ZE and Lacima Enter Partnership to Enhance Clients Data Analysis and Integration
On 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 Lacimas alliance extends the technological integration capabilities of both organizations so that ZEMAs extensive
market datasets and analyses flow seamlessly into Lacimas energy analytics system, Lacima Analytics. More
specifically, ZEMA aggregates market data and transforms prices into Lacimas 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.
July 2014 40
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Data Source Report Commodity Subscription
ERCOT 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
July 2014 41
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Argus Welcomes Ofgem Support for
Extending IOSCO PRA Principles
London, July 8, 2014: Global energy and
commodity news and price reporting agency Argus
welcomes todays 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 Ioscos 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.
Ofgems support for extension of the PRA principles is
an interim measure pending the outcome of a European
Commission proposal on benchmarks and Ioscos
consultation on extending the PRA principles.
Ofgem points out that the EUs 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.
Ofgems 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
seana.lanigan@argusmedia.com
Propylene Expected to More Than Double
its Output by 2017
Houston, 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
July 2014 42
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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 information
Media Contacts:
Houston
Gabriela Alcocer
+1 713 429 6308
gabriela.alcocer@argusmedia.com
Turkmenistan Chooses Argus as Energy
Price Information Source
London, 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 countrys 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
seana.lanigan@argusmedia.com
PEGAS: Half-Year Volumes More Than
Double Year-On-Year
Leipzig, 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.
July 2014 43
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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-Franois 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 Trading
Paris, 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 Belgiums 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 ZTPs liquidity.
Richard Katz, Powernexts 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.
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EPEXSPOT: Power Trading Results in June 201415-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 SPOTs
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:
Areas
Monthly volume
MWh
Monthly volume previous year
MWh
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).
Areas
Monthly volume
MWh
Monthly volume previous year
MWh
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 SPOTs markets.
Barchart Releases Java Client for
OnDemand APIs
Chicago, 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 Barchartsmarket data APIsinto 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 orASP.NET.
Barchart OnDemand providescloud-based
market datasolutions 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.
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 didnt 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 Beijings 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.
July 2014 46
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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 economys 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 worlds 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 Yorks 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 Yorks 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 Californias PG&E Citygate by 8% to $4.74 USD/MMBtu.
For the week ending July 23, 2014, EIAs 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 UpdateWeek Ending July 23, 2014, U.S. Energy Information Administration, July 23, 2014, Accessed
July 29, 2014, http://www.eia.gov/naturalgas/weekly/.
July 2014 48
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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, EIAs 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 years 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 UpdateWeek Ending July 23, 2014, U.S. Energy Information Administration, July 23, 2014, Accessed
July 29, 2014, http://www.eia.gov/naturalgas/weekly/.
July 2014 49
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Actual Weather (AccuWeather)
From June 2014 to the last Friday of July 2014, the temperature increased in all observed North American
citiesfollowing normal seasonal patternsexcept 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 years 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 years 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, CAISOs 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 CAISOs 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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Created with ZEMA
Natural Gas Market Changes
Natural 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 Drivers
Effective 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.
52 July 2014
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By Vera Tikhomolova
The Future of the
Natural Gas Market
53 July 2014
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gas 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 markets 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
54 July 2014
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gas market similar to the one OPEC has in the oil market. As of 2013, gas cartel members accounted for about 67%
1
of
the worlds 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.
Created with ZEMA
55 July 2014
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worlds 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.
Created with ZEMA
Created with ZEMA
56 July 2014
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LNG was not a new concept in 2008. In 1964, the U.K. became the worlds first LNG importer and Algeria the first LNG
exporter. Algeria has since become the worlds 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 Indonesias Arun gas field since the late 1970s.
By 2008, North Americas 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 Development
The 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 landscapeall 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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Figure 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 worlds
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
UK

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 $
58 July 2014
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Gazproms Hegemony in Europe
At the same time, Russia has continued conventional gas and pipeline transportation development, meeting around 30%
of European natural gas demand with its exports. Gazproms control over hydrocarbons in the region has increased from
its access to the Black Seaa result of Russias 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 Russias 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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After 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 EUs dependency on Russian gas, especially natural gas markets in Central and Eastern Europe.
Gazproms 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, Gazproms 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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Figure 11: Natural Gas Contract Pricing (Source: Alaska Natural Gas Transportation Project)

Gazprom has repeatedly stressed that shale gas development globally and decreasing European demand doesnt 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 Market
North Sea countries are also playing a very important role in the European market. Norway is the worlds 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 regions 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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Figure 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 Fields
The 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)

62 July 2014
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Some 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, Nabuccos 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 Europes 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.
63 July 2014
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Moreover, 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 Russias Gazprom
was losing control of the European gas market. Even now, with the escalation of the Ukrainian crisis, we cannot exclude
Ukraines 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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