Platts to update Indonesia LSWR specification

Following industry feedback, Platts will amend the specification for its FOB Indonesia LSWR assessment to reflect a higher viscosity grade of fuel known as V-1250 from August 1, 2012, in line with previous announcements from Platts on the intended evolution of the assessment.

The assessment will continue to be labeled as LSWR, and reflect typical V-1250 specifications: maximum sulfur content of 0.35%, maximum viscosity of 321 CST at 140 degrees Fahrenheit, and maximum pour point of 130 degrees F. A full list of the grade's typical specifications is given below.

The new specification includes a higher density, at 0.95, than the previous V-500 specification, at 0.93. Due to the change in density, Platts will amend the published conversion rate between $/barrel and $/mt for LSWR from 6.8 to 6.6.

Platts launched the LSWR assessment on October 1, 2010. Since that time, the LSWR assessment has reflected Indonesia's V-500 grade of LSWR (maximum sulfur content of 0.3%, maximum viscosity of 150 CST at 140 degrees F and maximum pour point of 130 degrees F).

Platts announced in September 2010 that the LSWR assessment would probably evolve to new grades of LSWR quality after 2012, including V-1250 grades, as Indonesia's state-owned oil company, Pertamina, changes the grade of its own fuel exports.

Separately, Platts expects to continue its existing LSWR Mixed/Cracked assessments, which will be assessed as differentials to the tradable V-1250 grade of LSWR. Platts is also inviting further comment regarding the continuation of its existing LSWR Mixed/Cracked price assessment.

Please send any remaining comments and questions to asia_products@platts.com and pricegroup@platts.com.

LSWR V-1250 typical specifications: Properties Unit Limit Test Method Min Max ASTM / IP / ISO Specific Gravity at 60/60 deg F 0.9500 D 1298 Kinematic Viscosity at 140 deg F CST 321.0 D 445 Viscosity Redwood at l/140 deg F second 1300 IP 70 Sulphur Content % Wt 0.35 D 2622/1552/4294 Carbon Conradson Residue % Wt 10.0 D 189/524 Water Content % Vol 0.50 D 95 Ash Content % Wt 0.100 D 482 Flash Point PMCC deg F 160 D 93 Pour Point deg F 130 D 97