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Asia LPG Methodology

Loading/Delivery Windows Size Location Specifications

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Methodology and Specifications Guide

Asian LPG
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China LPG Methodology

Locations Product Specifications:

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LATEST UPDATE: SEPTEMBER 2007

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METHODOLOGY GUIDE

ASIA LPG METHODOLOGY

Platts assesses the LPG market in Asia from the Arab Gulf to Japan/Korea (see locations), 35-55 days forward from date of publication (unless otherwise stated). Platts will consider confirmed deals on the day of business and subsequent firm bids and offers, along with supply/demand fundamentals, reported in the market. In the absence of confirmed deals, Platts will consider firm bids and offers along with market fundamentals. All bids, offers and trades will be measured against standards of repeatability and incrementability before inclusion in the assessment process. Assessments reflect transactable levels. Platts considers fixed price transactions and floating price transactions in its assessments. Floating price transactions are most commonly based on a premium or discount over Saudi Aramcos monthly export contract prices (CP). Timing: Platts tracks the markets continuously and assessments reflect the latest information up to 1630 Singapore standard time on the date of publication. Basis: Platts assessments reflect standard terms and conditions for FOB spot transactions lifting from the Arab Gulf and C+F spot transactions into Japan, Korea, South China and Taiwan mainports (see locations). Cost and Freight are defined by Incoterms. Asia Proxy: Platts publishes two proxy values for the Saudi CP, based on the official CP for the current month and forward CP values derived from the swaps market. These values provide a marker for the value of CP relative to the CFR delivery dates for Japan/Korea and China/Taiwan. Terms: AG/JAPAN/KOREA/SOUTH CHINA/TAIWAN: Platts assessments reflect transactions based on letter of credit with 30day contract terms.

SIZE
Platts Asia assessments reflect the following typical volumes:

Refrigerated Cargos
FOB AG: 10,000-40,000mt split refrigerated cargo 10,000-40,000mt split refrigerated cargo 10,000-40,000mt split refrigerated cargo

C+F JAPAN:

C+F KOREA:

C+F SOUTH CHINA/TAIWAN: 10,000-40,000mt split refrigerated cargo

Pressurized Cargos
C+F CHINA: 1,800-2,500mt pressurized mixed LPG

LOCATION
Platts assessments apply to the following ports:

Refrigerated Cargos
FOB AG: Export terminals including, but not limited to: Ras Tanura, Saudi Arabia and Yanbu, Saudi Arabia C+F JAPAN: Import terminals at main ports including, but not limited to Kashima, Yokkaichi and Oita C+F KOREA: Import terminals at main ports including, but not limited to Yeosu and Ulsan C+F SOUTH CHINA/TAIWAN: Import terminals, and floating storage vessels off China main ports including, but not limited to Shenzhen, Zhuhai, Shantou, Mai Liao and Kaohsiung

Pressurized Cargos
LOADING/DELIVERY WINDOWS

Refrigerated Cargos
FOB AG: Assessments typically reflect parcels loading in Arab Gulf 20-40 days out from the date of publication. C+F JAPAN/KOREA: Assessments typically reflect parcels to be delivered 35-55 days out from the date of publication. C+F SOUTH CHINA: Assessments typically reflect parcels to be delivered 20-35 days out from the date of publication.

C+F SOUTH CHINA: Pressurized LPG storage terminals in South China including, but not limited to Shenzhen, Zhuhai, Xiamen and Shantou C+F EAST CHINA: Pressurized LPG storage terminals in East China including, but not limited to Shanghai, Ningbo and Nantong

SPECIFICATIONS
Propane (C3): Conforming to SAMAREC A-140 specifications issued by Saudi Aramco, including: minimum 95% propane content, maximum 4% butane content and maximum 0.1% olefin content. Normal Butane (C4): Conforming to SAMAREC A-160 specifications issued by Saudi Aramco, including: maximum 2% propane content, maximum 29% isobutane content, minimum 68% normal butane content and maximum 0.1% olefin content.

Pressurized Cargos
C+F SOUTH CHINA: Assessments typically reflect parcels to be delivered 7-15 days out from the date of publication. C+F EAST CHINA: Assessments typically reflect parcels to be delivered 7-15 days out from the date of publication.
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CHINA LPG METHODOLOGY

LPG Import Terminals
This report contains the specifications and methodology for LPG in China. It is to be used as a reference for the assessments produced by Platts and to enhance the awareness in the trading community of what the assessments mean. This guide is updated regularly and will keep you informed of additional changes. Platts price specialists focus on price discovery and follow prices in all main trading markets. In markets where trading activity occurs continuously, Platts price specialists cover those markets continuously as well, with responsibilities transferred across the globe. In the Asia-Pacific region, Platts specialists in Guangzhou, Singapore, Tokyo, Sydney and Hong Kong track prices and analyze market conditions starting at 9.30 am China Standard Time (China and Singapore are in the same time zone). Platts staff track events as well as pricing developments with the information then summarized in our daily reports. The market activity is reflected in the assessments in a very rigorous manner using a methodology developed by Platts. The methodology reflects the activity of the market players and takes into account industry practices Platts China domestic LPG assessments reflect spot activity in several regions within China. Platts only takes into account transactions done at arms' length between unrelated companies. Trades between affiliates, subsidiaries or related parties will not be recognized and may result in the loss of credibility by the parties, and subsequent removal of the privilege to submit bids and offers. Platts will consider confirmed deals on the day of business and subsequent firm bids and offers, along with supply/demand fundamentals, reported in the market. In the absence of confirmed deals, Platts will consider firm bids and offers along with market fundamentals. All bids, offers and trades will be measured against standards of repeatability and incrementability before inclusion in the assessment process. Assessments reflect transactable levels. A list of the main factors used in the assessments follows: Timing: Platts tracks the markets continuously and our assessments reflect the latest information available at up to 1630 (4.30pm) China local time (0830 GMT) on the day of publication. Basis: Assessments are for the spot market, and are based on actual transactions. In the absence of deals, bids and offers are considered. Assessments reflect a transactable level. Range: The range reflects levels at which a deal can take place. Reporters do not simply take the highest market bid and the lowest market offer to publish a range. Waterborne: Spot deals done ex-refinery or ex-tank terminal into coastal vessels. Ex-truck: Spot deals done from the product terminals and refineries into trucks. The assessments do not reflect term transactions for branded products.
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LOCATIONS

East China assessments include, but are not limited to terminals in the following regions: Shanghai, Jiangsu, Zhejiang and Fujian North China assessments include, but are not limited to terminals in the following regions: Hebei, Shandong and Tianjing Northeast China assessments include, but are not limited to terminals in the following region: Liaoning South China assessments include the Pearl River Delta, East and West Guangdong areas.

Pearl River Delta assessments include, but are not limited to terminals in the following regions: Guangzhou, Shenzhen (including Huizhou) and Zhuhai West Guangdong assessments include, but are not limited to terminals in the following regions: Yangjiang and Maoming East Guangdong assessments include, but are not limited to terminals in the following regions: Chaozhou and Shantou

Refineries
South China assessments include, but are not limited to the following refineries: Guangzhou and Maoming East China assessments include, but are not limited to the following refineries: Zhenhai, Shanghai, Gaoqiao and Jinling, Yangzi and Fujian North China assessments include, but are not limited to the following refineries: Tianjin, Yanshan, Dagang, Cangzhou, Huabei Northeast China assessments include, but are not limited to the following refineries: Daqing, Dalian, Jinzhou and Jinxi

Assessment units
Yuan (RMB) per metric ton.

Taxes
Assessments include value-added tax (typically 13%), import duties (typically 5%) and berthing fees (typically Yuan 40-50/mt)

Volumes
Assessments reflect typical volumes traded in the spot market. Standard volumes are: 600-1,500mt for waterborne, and 10-25mt parcels for ex-truck assessments.

Loading time
Waterborne: Assessments typically reflect parcels loading in 2-5

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People's Republic of China LPG standard specifications GB 1174-1997

Item Density (15C), kg/m Vapor pressure (37.8C), kPa < Pentanes and heavier , %(V/V)< Residue Evaporation residue, mL/100mL< Oil Stain Observation Copper Strip (Corrosion)< Sulfur (Total), mg/m< Free Water Content Quality Standard Report 1380 3.0 0.05 pass 1 343 N/A Testing Method SH/T 0221 GB/T 6602 SH/T 0230 SY/T 7509

SH/T 0232 SH/T 0222 Visual Test

The density can also be calculated by test method GB/T 12576, but in arbitration it must follow SH/T 0221. Vapor pressure can also be calculated test method GB/T 12576,but in arbitration it must follow GB/T 6602. According to description in SY/T 7509, 0.3ml residue of solvent is dropped separately with 0.1ml individually onto the filter paper, which in 2 minutes is observed under day light, sample passes test if there is no oil residue on the filter paper.

Saudi Aramco product specification / refrigerated Propane LPG

Test Composition,liquid volume % Ethane Propane Butanes Pentanes and heavier Total Olefins Corrosive Compunds,Copper strip Hydrogen Sulfide, ppm (wt) Guarantee Max 2.0 Min 95.0 Max 4.0 Nil Max 0.1 Max No 1b Max 5 Method ASTM D-2163

Specific Gravity 60F/60F Sulfur (Total),ppm (wt) (ug/g) Vapor Pressure @ 100F,psig (KPa(g)) Water Content, ppm (wt)

To be reported Max 30 Max 200 (1380) Max 10

ASTM D-1838 Lead acetate paper per Exxon Lab. Inspection Circular 200.14 UOP-212 ASTM D-2598 ASTM D-2784/D-40454 ASTM D-2598/D-1267 ASTM E-700

Notes: Odorant not required in refrigerated propane LPG. Hydrogen sulfide test required only when volatile sulfur test exceeds 5 ppm. Passing test of hydrogen sulfide shall be reported as "Not more than 5 ppm". Product shall contain no free water. 4 ASTM D-4045 as modified by Saudi Aramco can also be used as an alternative method of testing

Saudi Aramco product specification / refrigerated Butane LPG

Test Composition,liquid volume % Propane Iso-butane N-butane Isopentane and heavier Olefins Corrosive Compunds,Copper strip Hydrogen Sulfide, ppm (wt) Specific Gravity 60F/60F Total Sulfur ,ppm (wt) (ug/g) Vapor Pressure @ 100F,psig (KPa(g)) Water Content, ppm (wt) Guarantee Max 2.0 Max 29.0 Min 68.0 Mix 1.0 Max 0.1 Max No. 1b Max 5 To be reported Max 30 Max 70 (483) Max 10 Method ASTM D-2163

ASTM D-1838 Exxon Laboratory Inspection Circular 200.14 or UOP .212 ASTM D-2598 ASTM D-2784/ D-40454 ASTM D-2598/ D-1267 ASTM E-700

Notes: Odorant not required in refrigerated propane LPG. Hydrogen sulfide test required only when volatile sulfur test exceeds 5 ppm. Passing test of hydrogen sulfide shall be reported as "Not more than 5 ppm". Product shall contain no free water. 4 ASTM D-4045 as modified by Saudi Aramco can also be used as an alternative method of testing

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METHODOLOGY GUIDE

days out from the date of publication. Ex-Truck: Assessments typically reflect parcels loading in 1-3 days out from the date of publication.

Aramco's specifications for propane and butane, detailed in the tables below. Import grade LPG is defined as typically being 30:70, propane:butane. Refinery grade is defined as typically being 10:90, propane:butane. Platts assesses refinery-grade or China standard LPG in northern and northeastern China. Platts assesses refinery and imported-grade LPG in eastern China. Platts assesses imported grade LPG in southern China.

PRODUCT SPECIFICATIONS
Platts assesses two grades of LPG in China. Refinery grade LPG is defined as the Peoples' Republic of China LPG standard specifications, detailed in the table on page 4 of this guide. Import grade LPG is defined according to Saudi

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