SUBSCRIBER NOTE: Platts to launch Rotterdam 0.1% bunker fuel assessment

With effect from September 1, 2015, Platts will launch a new assessment for an ECA-compliant, 0.1% sulfur bunker fuel, following a proposal note. This new assessment comes on the back of the introduction of new sulfur emissions rules for vessels in the Emissions Control Area around Northwest Europe in 2015.

From 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, which leaves the door open for multiple means of compliance.

Based on extensive consultation with market participants, Platts believes there exists the possibility for a new market to develop for an ECA-compliant bunker fuel that features aspects of residual fuel oils, which have traditionally been a component of bunker fuel, and less sulfur-intense distillate fuels. This likely new bunker fuel has been described by many market participants as a dirty gasoil.

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

The proposed new assessment would reflect the following specifications:

Specifications generally conform with those of 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 Celsiun) and 0.991 kg/liter density with a maximum combined aluminum and silicon content of 80 ppm, 30 max Pour Point, Flash min 60 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 normal market conventions around what is and is not acceptable in its makeup.

The assessment would reflect fuel loading on a delivered basis, one to eight 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 to globalbunkers@platts.com and pricegroup@platts.com.

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