SUBSCRIBER NOTE: Platts launches LSMGO, LSMDO assessments at key Asian ports

S&P Global Platts from June 1, 2017, started publishing price assessments for delivered low sulfur marine gasoil and delivered low sulfur marine diesel oil at a number of bunkering ports across Asia. These assessments are published alongside existing MGO and MDO assessments, where they already exist.

Platts had proposed to launch these assessments through a subscriber note, which was published on March 9, 2017.

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

Platts has started publishing LSMGO assessments at Singapore, Fujairah, Hong Kong, Shanghai and South Korea. Platts has also started publishing LSMDO assessments at Tokyo Bay and West Japan.

The 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.

The new assessments are as follows: Assessment Code Low Sulfur Marine Gasoil Dlvd Fujairah AAXYP00 Low Sulfur Marine Gasoil Dlvd Hong Kong AAXYQ00 Low Sulfur Marine Gasoil Dlvd Shanghai AAXYR00 Low Sulfur Marine Gasoil Dlvd Singapore AAXYO00 Low Sulfur Marine Gasoil Dlvd South Korea AAXYS00 Low Sulfur Marine Diesel Dlvd Tokyo Bay AAXYT00 Low Sulfur Marine Diesel Dlvd West Japan AAXYU00

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