Platts proposes to launch US LNG bunker assessment

S&P Global Platts is proposing to launch a new daily LNG bunker fuel price assessment, reflecting the value of LNG used as a marine fuel in the Southeast coast region of the US, effective March 16, 2022.

The new assessment would be published on a fixed price delivered basis in $/MMBtu. The assessment would reflect the prevailing spot price of LNG bunkers transacted on the US' southeast coast, with the basis port being Jacksonville, Florida.

Platts would consider as the basis of its assessment deliveries on a barge-to-ship basis, but would also consider truck-to-ship trade volume and normalize where appropriate to a barge-to-ship equivalent price.

Platts would convert floating prices, or index-linked prices, to a fixed price for consideration in the final, fixed-price assessment.

Platts would publish price symbols on a $/mt basis, one reflecting the calorific value of the direct competing fuel oil market of 0.1% sulfur; the other using the LNG conversion factor of 52 to arrive at a $/mt assessment. The fuel oil equivalent conversion assessment would use a factor of 38.643 as its basis.

The assessments would reflect market value at the close of London trade at 4.30 pm UK time, and would follow the UK publishing schedule.

Platts invites feedback on all of the above, and also specifically invites feedback on volume size and the delivery window to be reflected in the assessment.

The new assessments would be published in Platts LNG Alert pages 0860 and 0861, Platts Natural Gas Alert pages 0860 and 0861, LNG Daily and Bunkerwire.

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Feb. 1, 2022. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.