Platts extends feedback on proposal to include Texas International Terminals Galveston in USGC Marine Fuel MOC process

S&P Global Platts has extended the feedback period to February 14, 2020 on the proposal to begin reflecting loadings from the Texas International Terminals Galveston terminal in its USGC 0.5% sulfur marine fuel oil assessments.

This was originally proposed to be effective as of January 13, 2020. Platts has extended the feedback period to better understand terminal operations, as well as the impact the addition of the terminal could have on Platts USGC 0.5%S marine fuel assessment process. Platts invites feedback in particular from any market participant who has loaded fuel out of the Texas International Terminal.

This terminal would be added to the list of current acceptable terminals for FOB Galveston Bay loadings in the US Gulf Coast 0.5% sulfur marine fuel oil market on close assessment.

The terminal, located along the Galveston Ship Channel, includes 325,000 barrels of storage for crude oil and refined products, including 0.5%S marine fuel. The terminal has a deep draft vessel berth with 40 ft max draft accommodating up to a Panamax, along with three barge berths with 15 ft max draft. The company has stated that permits have been approved for two additional berths for post-Panamax vessels with 45 ft drafts. A further 1.66 million barrels of storage capacity has been permitted for construction.

Platts may review the inclusion of additional terminals for its 0.5%S marine fuel oil assessments and may also review the list of existing acceptable terminals in relation to loading 0.5%S. Platts' US Gulf Coast 0.5%S marine fuel oil assessments currently reflect fuel oil loading basis FOB Houston from the following terminals: Magellan Galena Park Terminal, Kinder Morgan Galena Park, Bayport Container Terminal (LBC), Houston Fuel Oil Terminal (HOFTI) and Battleground Oil Specialty Terminal (BOSTCO). The assessments currently reflect fuel oil loading basis FOB Galveston Bay from the NuStar Texas City and World Point Terminals Pelican Island terminals.

The assessments currently reflect fuel oil loading in the Gretna, Marrero, and St. Rose terminals for FOB New Orleans. Bids, offers, and trades in the MOC process for FOB Galveston Bay and FOB New Orleans may be normalized back to the FOB Houston basis of the Marine Fuel 0.5%S assessment.

Please send any further queries or feedback to americas_products@spglobal.com and pricegroup@spglobal.com by February 14, 2020. 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.