SUBSCRIBER NOTE: Platts proposes Rotterdam 0.1%S bunker fuel assessment

In line with the introduction of new sulfur emissions rules for vessels in the Emissions Control Area around Northwest Europe in 2015, Platts is proposing a new assessment for an ECA-compliant, 0.1% sulfur bunker fuel, with effect from September 1, 2015.

Since January 1, 2015, ships traveling within the Northwest European ECA have had to limit sulfur emissions from fuel to 0.1%, down from the previous maximum of 1%, according to International Maritime Organization rules.

The regulations do not stipulate use of a specific fuel, as the focus is on emissions, which leaves the door open for multiple means of compliance.

Based on extensive consultation with market participants, Platts believes there exists the potential for a new market to evolve based on an ECA-compliant bunker fuel standard as a key component in meeting the new regulatory requirement.

The new standard could feature aspects of residual fuel oils, which have traditionally been a component of bunker fuel, and less sulfur-intense distillate fuels.

This new bunker fuel standard has been described by many market participants as a dirty gasoil.

The proposed new assessments for this product would be made on a delivered basis in Rotterdam, and published in dollars per metric ton.

The proposed new assessment would reflect the following specifications: Specifications generally conform with that for RMG 380 CST but with a 0.1% maximum sulfur. Platts proposes to reflect the value of 0.1% maximum sulfur with 380 CST max viscosity (at 50 degrees C) and 0.991kg/l density with a maximum combined aluminum and silicon content of 80 ppm, 30 max Pour Point, Flash min 60 degrees C, CCR max 18%, Ash max 0.15%, Water max 0.5%, Vanadium max 300 mg/kg, TSP 0.1%, Zinc max 15 mg/kg, Phosphorus max 15 mg/kg, Calcium max 30 mg/kg, Free from used lubricating oils (ULO) (calcium 30 and zinc 15; or calcium 30 and phosphorus 15), H2S 2ppm max.

This product is intended for use in ships and should follow evolving market conventions around acceptable merchantability.

The assessment would reflect fuel loading on a delivered basis, 1-8 days forward from the date of assessment.

The minimum stem size would be 200 mt and the maximum stem size would be 1,000 mt.

Platts will continue to publish its current assessments for marine gasoil, which is also ECA-compliant.

Please send feedback by July 31 to globalbunkers@platts.com and pricegroup@platts.com.

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Platts will consider all comments received and will make comments not marked as confidential available upon request.