Please be advised that the pricing for the May LPG delivery into Puerto Rico has been changed as follows:


Previous:	10,000 MT +/- 5%	@ Average Mont Belvieu for 3 days around bill of lading plus 7 cents per gallon


Current:		 2,600 MT (1,354,600 gallons)    @ 58.625 cents + (Average Mont Belvieu for 3 days around bill of lading minus Average Mont Belvieu for May 17, 18, 21)

		Remainder of Cargo	@ Average Mont Belvieu for 3 days around bill of lading plus 7 cents per gallon


Basis:		521 Gallons/MT


		Note that the price component (Average Mont Belvieu for 3 days around bill of lading minus Average Mont Belvieu for May 17, 18, 21) will be equal to zero if 		the bill of lading date is May 18th. Otherwise, this component will result in a small increase or decrease in the pricing. ELFI was able to give ProCaribe an 		"almost" Fixed Price on the 2600 MT by hedging Mont Belvieu for May 17, 18, and 21 (corresponds to a B/L date of May 18th). ProCaribe bears the 			risk/benefit of a different B/L date.


The 2600 MT for which the price is fixed, represents the amount of LPG that has been sold to-date since borrowing began in April. The price that ProCaribe will receive for the volumes sold in April will be based on a Mont Belvieu price of 54.281. The fixed price of the upcoming cargo could be thought of as April Mont Belvieu plus 4.344 cents per gallon (54.281+4.344 = 58.625). The price that ProCaribe will receive for the volumes sold May 1st through May 9th should be thought of as being based on May Mont Belvieu through May 9th which is ~51.9 cents. The fixed price of the upcoming cargo could be thought of as May 1st-9th Mont Belvieu plus 6.725 cents per gallon (51.9+6.725 = 58.625).  

Any hedging of the remainder of the volume should be done once the prices are known for May 17, 18, and 21st. ProCaribe is taking a risk that Mont Belvieu for May 17, 18, and 21 could be higher than May 10th - 31st. That would make the Mont Belvieu average used in calculating the cost of the cargo a higher number than the Mont Belvieu average used in calculating ProCaribe's sales price. The cost of hedging out this risk is 1-1.5 cents. ProCaribe should just take the risk.  
 

Regards,

Paul