Platts proposes delivered Rotterdam Subsidised Bio-LNG bunker fuel assessment and update to carbon intensity value

Platts, part of S&P Global Commodity Insights, is proposing to launch a daily Rotterdam subsidised bio-LNG bunker fuel price assessment reflecting the value of spot bio-LNG bunker fuel volumes delivered on a barge-to-ship basis in Rotterdam, effective Sept. 25.

Platts is also proposing to update the carbon intensity (CI) reflected in the sustainability documentation of the material to 21g CO2e/MJ. Material with carbon intensity above or below would be considered for the assessment process but may be subject to normalization to the above specification. This would apply to the existing delivered Rotterdam unsubsidised bio-LNG assessment (BLFAA00, BLFAB00, BLFAC00) and the proposed subsidised equivalent.

Platts has observed growing consumption and production of subsidised bio-LNG in Northwest Europe alongside volumes of unsubsidised bio-LNG. Platts has also observed increasing demand for volumes of a carbon intensity lower than 28 g CO2e/MJ in light of the available feedstock and the emissions associated with production and delivery.

The new delivered subsidised bio-LNG assessment would provide additional transparency to the Northwest European bio-LNG market, following extensive consultation with producers, consumers, traders and others in the European natural gas, LNG and biofuels markets.

FREQUENCY: The Rotterdam subsidised bio-LNG Bunker Fuel assessment would be published each business day and reflect market values prevailing at the close of European markets, 4:30 pm London time.

BASIS AND LOCATION: Platts would consider the prevailing tradable value of subsidised bio-LNG bunker fuel in the locations on a barge-to-ship (delivered) basis in Rotterdam. Truck-to-ship (ex-wharf) basis would also be considered for the assessment process but may be subject to normalization. The subsidised bio-LNG bunker fuel assessment would include the logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel.

TIMING: The Rotterdam subsidised bio-LNG bunker fuel assessment would be for bunker deliveries 7-30 days ahead.

VOLUME: The assessed volume would be for deliveries of 100 mt to 200 mt. Sizes above and below may be normalized for assessment purposes.

UNIT: The assessment would be published as a differential to the spot LNG Northwest Europe (AASXU00) assessment, and on an outright basis in $/MMBtu and Eur/MWh.

Prices of trucked subsidised bio-LNG and bio-LNG bunkers delivered in ISCC-certified ports across Northwest Europe maybe considered and normalized to the above specifications.

In addition, Platts would publish price differentials, comparing Rotterdam subsidised Bio-LNG Bunker Fuel against Rotterdam LNG Bunker Fuel (LNBRD00), Dutch TTF 1-Mo (GTFWM10) and Dutch TTF 2-Mo (GTFWM20) respectively.

A conversion to $/mt of LNG would be published from the MMBtu assessment using a factor of 52.

The assessment would be published in Platts LNG Daily, Bunkerwire and Platts LNG Alert pages LNG0860 and LNG0861.

Platts invites feedback on the above proposal by August 28.

Please send all feedback, comments, and questions toLNGeditorialteam@spglobal.com and pricegroup@spglobal.com

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and make comments not marked as confidential available upon request.