SUBSCRIBER NOTE: Platts to amend specifications of FOB Indonesia LSWR assessments

Singapore (Platts)--5Jul2018/402 am EDT/802 GMT S&P Global Platts will change the specifications of low sulfur waxy residue reflected in its assessments of FOB Indonesia LSWR from August 1, 2018, following changes in the product's typical quality.

Platts initially proposed to implement the changes through a subscriber note published April 26, 2018 (https://www.platts.com/subscriber-notes-details/26922294).

Platts FOB Indonesia LSWR assessment (AAUGR00) reflects quality specifications of the V-1250 grade.

The product's key supplier Pertamina is understood to now sell V-1250 LSWR with a maximum sulfur content of 0.45% and maximum density of 0.97.

Accordingly, Platts will amend its FOB Indonesia LSWR specifications to reflect a specific gravity at 60/60 degrees F of a maximum of 0.97 from the current 0.95 maximum.

Platts will also change the sulfur content to a maximum of 0.45% by weight, from the current 0.35% maximum.

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

Cargoes of V-1250 LSWR typically trade as a differential to Platts FOB Singapore 180 CST high sulfur fuel oil that is published in $/mt.

Platts publishes FOB Indonesia LSWR assessment in US$/barrel based on the published conversion factor.

Platts assessment of FOB Indonesia LSWR Mixed/Cracked (PPAPU00), which is also published in US$/barrel, uses a conversion factor of 6.80.

Given the relatively thin liquidity in 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.

Subsequent to review of industry feedback Platts will amend the quality premium used in the assessment of FOB Indonesia LSWR Mixed/Cracked to $4.50/b over the FOB Indonesia LSWR (V-1250) assessments from $2.20/b currently.

For more details on the specification of both these grades and their assessment process please refer to the Asia Pacific and Middle East Refined Oil Products methodology guide at www.platts.com. Please send all comments, feedback and questions to asia_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing.

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