HOUSTON, Jan. 21, 2014 /PRNewswire/ -- Chile's state-owned oil company Enap has switched its data provider for oil products prices to leading energy and commodity price and news reporting agency Argus. Enap is a key leader of the energy sector in the Latin America. It supplies nearly 65pc of Chile's total oil products demand and represents roughly one-third of the country's energy supply. The decision became effective on 1 January 2014.
Enap will use Argus price assessments for trading of oil products, including, gasoline, jet fuel, diesel and fuel oil. Argus price assessments will be used as the underlying index behind supply contract formulas for the company's customers in Chile.
Enap's decision reflects the increased importance of international buying and selling on domestic oil products prices. Events such as shale oil production, refining investments and commercial strategies are rapidly reshaping the industry. Such dynamic changes in trading are incentivizing key companies in Latin America to revisit their pricing sources to ensure that they are reflective of current market conditions.
Argus oil products price assessments are widely used in physical and derivative contracts around the world. Its transparent and market-appropriate methodology has been increasingly adopted throughout the Americas.
"We are delighted that a leading Latin American organization such as Enap has made the switch to using Argus price assessments in its sales and purchase contracts," Argus Media chairman and chief executive Adrian Binks said. "This move is a further example of the increasing adoption of Argus prices across global energy markets."
Argus price assessments are used extensively by governments as independent references for taxation and other purposes. Argus prices 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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About Argus Media
Argus is an independent media organisation with almost 600 full time staff. It is headquartered in London and has offices in each of the world's principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.
More than half of Argus employees are commodity journalists who specialise in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and a compliance and ethics policy that align with best journalistic practice, including the avoidance of conflicts of interest.
Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.
Argus has 19 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.