SUBSCRIBER NOTE: USGC HSFO quality and testing procedures

S&P Global Platts editorial standards for the Market On Close assessment process for US fuel oil barge assessments calls for best practices in all aspects of operational performance.

Platts is aware that additional testing of fuel oil quality, particularly Gas Chromatography-Mass Spectrometry (GCMS), is being conducted more commonly on the US Gulf Coast.

Platts would like to remind market participants that such testing for trades within the MOC process should be done promptly and performance should take place within the traded laycans and in line with the following published nomination guidelines.

Existing published guidelines for FOB US fuel oil barge transactions state that the seller should provide the Certificate of Analysis to the buyer at the latest on the calendar day prior to the first day of the laycan. The buyer should nominate the lifting date within the three-day laycan, as well as the performing vessel, at least one calendar day prior to the lifting date, subject to terminal acceptance.

Platts would also like to remind market participants that Platts fuel oil assessments reflect material that is of merchantable quality.

As stated in Platts published methodology, product reflected in Platts fuel oil assessments "shall not contain petrochemical wastes, residues from acid-catalyzed refining process, spent chemicals, waste lubricants, tar bottoms or hazardous waste." Furthermore, product containing any material proven to cause ship engine damage at certain reported levels is considered unmerchantable.

For instance, Platts understands that fatty acid methyl esters, or FAME, is commonly found in fuel oil in trace amounts, and are not deemed harmful to ship engines at those levels. Platts is also aware that heavy fatty acids are not deemed harmful to ship engines when registering at trace levels. As such, barrels traded within the MOC process should not be unreasonably rejected by an entity, and any rejection based on quality may be subject to Platts review.

Platts welcomes feedback on the above issues, including testing methods, loading date ranges, quality specifications and operational timelines. Please send any further feedback or comments to americas_products@platts.com and pricegroup@platts.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 will make comments not marked as confidential available upon request.