SUBSCRIBER NOTE: Platts proposes to launch LSMGO, LSMDO assessments at key Asian ports

S&P Global Platts proposes to start publishing assessments for low sulfur marine gasoil and diesel oil prices at a number of bunkering ports across Asia from June 1, 2017. These assessments would be published alongside existing MGO and MDO assessments, where they already exist.

The LSMGO and LSMDO assessments would reflect fuels with maximum sulfur content of 0.10% m/m, for deliveries three to seven days from the date of publication.

Platts plans to publish LSMGO assessments at Singapore, Fujairah, Hong Kong, Shanghai and South Korea. Platts also plans publish LSMDO assessments at Tokyo Bay and West Japan.

The proposed launch reflects the evolution in marine fuel quality standards in Asia, driven by tightening local and global regulations that limit the sulfur content in marine fuels.

While LSMGO still accounts for a fraction of bunker fuel sold in the region, sales numbers in recent years point to a substantial growth in volumes.

For example, at Singapore -- the region's largest bunkering port -- LSMGO sales have grown nearly sixfold in the last three years to hit a record of 1.14 million mt in 2016.

The rising demand for low sulfur marine fuel is driven by ships' need to switch to low sulfur marine fuels while traversing Emission Control Areas within Asia as well as the US and Europe.

The new assessments would capture the expected growth in liquidity of low sulfur barrels in the marine fuels market across the region as sulfur limits globally are set to tighten further in the years ahead.

Please send all comments, feedback and questions to asia_products@spglobal.com and pricegroup@spglobal.com by April 30, 2017.

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