President Rafael Correa of Ecuador has issued a decree that orders the gradual national roll out of a 10pc ethanol blend in gasoline, using a price index published by global energy and commodity news and price reporting agency Argus.
Ecuador will calculate the price of the new fuel using the Argus US Gulf coast ethanol assessment, which is published daily in Argus Americas Biofuels.
The wholesale price of the new blend — called Ecopais — will be calculated based on the Argus ethanol price plus delivery costs from the US Gulf coast to Ecuador and a K factor of18¢/liter.
The Ecopais plan is aimed at reducing Ecuador´s growing high-octane gasoline imports, which are blended with locally produced low-octane gasoline to make 87-octane and 93-octane gasoline.
“We are delighted that Ecuador has chosen to base its new ethanol mandate on Argus price assessments, in recognition of our clear methodology and benchmark status in global biofuels markets,” Argus Media chairman and chief executive Adrian Binks said.
A number of Latin American countries have adopted Argus-related pricing in oil and energy markets. The Ecopais announcement follows last year’s decision by state-owned oil company PetroEcuador to price its crude exports against the ASCI™ benchmark — Argus’ volume-weighted average of US deepwater sour crude deals.
Argus biofuels price assessments are widely used in physical and derivative contracts around the world. Argus’ transparent price assessment methodology has been increasingly adopted throughout the Americas and globally. Argus price assessments are used by major energy producers and consumers as price references in long-term supply contracts, and by market participants for portfolio mark-to-market, counterparty exposure management, derivatives and a wide range of investment and market analysis purposes.
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