Platts amends Singapore blended B24 bio-bunkers assessment

Platts, part of S&P Global Commodity Insights, has amended the methodology for its blended B24 bio-bunkers assessment in Singapore - Platts Bio-Bunkers B24 Singapore (ABUNA00) - effective Jan. 2, 2024.

The change follows market feedback in favour of the revision of the B24 Bio-Bunkers methodology.

Platts first proposed these changes on Nov. 29: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112923-platts-proposes-amending-singapore-blended-b24-bio-bunkers-assessment(opens in a new tab)

Following market feedback, Platts brought forward the proposed effective date of change on Dec. 6: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120623-platts-proposes-amending-singapore-blended-b24-bio-bunkers-assessment(opens in a new tab)

The Singapore delivered B24 bio-bunkers calculated assessment reflects a ratio of 76% fuel oil based on Platts benchmark Marine Fuel 0.5% Bunker Dlvd Spore $/mt assessment (MFSPD00) and 24% Used Cooking Oil Methyl Esther (UCOME) based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00), and including additional logistical costs.

Previously the 24% UCOME was normalized to delivered basis using coastal freight in Singapore derived from Clean Singapore-Singapore 30kt MR Lumpsum (PFAEE00), storage costs in Singapore On-Shore Tanks (ABUNB00) and delivery costs that were calculated using the spread between Marine Fuel 0.5% Bunker Dlvd Spore (MFSPD00) and Marine Fuel 0.5% Bunker Ex-wharf Spore $/mt (MFSPE00).

Platts has updated the normalization of 24% delivered UCOME, storage and barging costs. The 24% delivered UCOME component of the calculated assessment is now based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00), the Clean Singapore-Singapore 30kt MR Lumpsum (PFAEE00) is used as a proxy to derive the coastal freight to ship UCOME to Singapore terminals.

Platts also factors in the total cost of blending and storing biodiesel in Singapore On-Shore Tanks (ABUNB00) and the B24 Bio-Bunkers Barging Cost (BBCAA00).

In addition, Platts reflects B24 bio-bunkers stem size ranging between 500 mt to 1,000 mt.

Platts will continue to review and update the storage and barging costs when needed and based on information received from the market, as typical. This information will be published as price heards.

The assessment is published on Platts Biofuels Alert (PBF2500), in the Bunkerwire Report, Bunkerwire Monthly, Biofuelscan report and Biomass-Based Diesel Report.

Please send any comments or feedback to MRTS_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

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Platts will consider all comments received and will make comments not marked as confidential available upon request.