SUBSCRIBER NOTE: Platts proposes to amend specifications for FOB Indonesia LSWR assessment

S&P Global Platts proposes to change the specifications of low sulfur waxy residue reflected in its assessments of FOB Indonesia LSWR from June 1, 2018, following the changes in the product's typical quality.

Platts FOB Indonesia LSWR assessment (AAUGR00) reflect quality specifications of the V-1250 grade. Platts understands that the product's key supplier Pertamina now sells V-1250 LSWR with a maximum sulfur content of 0.45% and maximum density of 0.97.

Accordingly, Platts proposes to amend its FOB Indonesia LSWR specifications to reflect a specific gravity at 60/60 deg F of a maximum of 0.97 from the current 0.95 max. Platts also proposes to change the sulfur content to a maximum of 0.45% by weight from the current 0.35% max.

Considering the change in specific gravity, Platts proposes to amend its metric ton-to-barrel conversion factor for the FOB Indonesia LSWR assessment to 6.50 from the current 6.60.

Cargoes of V-1250 LSWR typically trade as a differential to Platts FOB Singapore 180CST fuel oil that is published in $/mt. Platts publishes FOB Indonesia LSWR assessment in USD/barrel based on the published conversion factor.

In addition, Platts is inviting feedback on the quality premium used in the assessment of FOB Indonesia LSWR Mixed/Cracked (PPAPU00). Given the thin liquidity in the traditional LSWR Mixed/Cracked market, Platts' LSWR Mixed/Cracked assessment is established by applying a steady, quality-based premium to the tradable V-1250 grade of LSWR.

Platts uses a conversion factor of 6.80 barrel/mt in its assessment of FOB Indonesia LSWR Mixed/Cracked that are also published in USD/barrel.

Platts' FOB Indonesia LSWR Mixed/Cracked assessment currently factors in a quality premium of $2.20/b over the FOB Indonesia LSWR (V-1250) assessments.

Platts continues to invite comments regarding the continuation of its price assessment for FOB Indonesia LSWR Mixed/Cracked.

For more details on the specification of both these grades and their assessments process, please refer to the Asia Pacific and Middle East Refined Oil Products methodology guide at https://www.platts.com/methodology-specifications/oil Please send all comments, feedback and questions to asia_products@spglobal.com and pricegroup@spglobal.com by May 4, 2018.

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.