Platts opens consultation on US Marine Fuel 0.5%S multi-tank blends

S&P Global Platts is opening a formal consultation on the use of multi-tank blends, commonly referred to as hand blends, in the US Gulf and Atlantic Coast Marine Fuel 0.5%S markets and invites feedback on the practices and specification testing expectations in these markets.

From this market feedback, Platts may seek to implement operational guidelines that would contribute to the accuracy of the underlying assessments.

In this consultation, Platts invites feedback on the following areas:

• The fungibility and frequency of hand blends for similar-sized stems in 0.5%S transactions in the Gulf Coast and Atlantic Coast markets
• The typical number of tanks employed in a hand blend
• The minimum proportion of a blend that can originate from a single tank with no operational issues for the terminal and ensuring a blended product
• Typical expectations for Certificate of Analysis on hand blends, including whether it is common practice for buyers to require testing after loading
• Typical expectations for sulfur specifications, including when requirements are included for lower than 0.5%S to provide a buffer for sulfur pickup in lines/on barges

Platts also understands that not all terminals have segregated low sulfur and high sulfur lines, and invites feedback on whether additional clarity is needed in these cases.

Platts reviewed the use of hand blends in October 2019 in the US markets and received feedback that the practice was common in the Marine Fuel 0.5%S market. In that review, Platts established that for performance against trades reported through the MOC process, the certificates of analysis must reflect a physical sample of the finish blend. Sellers must provide a COA at the latest on the calendar day before the first day of the reported laycan.

Platts has since received feedback that operational approaches in this market have evolved as Marine Fuel 0.5%S has become a more commonly delivered product. Platts seeks to ensure that its assessments continue to reflect standard market practice, and that performance against trades reported in the Market on Close process reflect best practice operations and delivery of bunkers-suitable product.

Please send all comments to americas_products@spglobal.com and pricegroup@spglobal.com by March 5, 2021.

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.