Platts proposes Shanghai LNG bunker assessment

Platts, part of S&P Global Commodity Insights, is proposing to start publishing a daily LNG bunker fuel price assessment, reflecting the value of LNG used as a marine fuel in Shanghai, China, effective Oct. 2.

The assessment would reflect the prevailing spot price of LNG bunkers transacted in Shanghai, China.

Deliveries in other ports within China would also be considered and may be normalized to the above-mentioned basis.

The new assessment would be published on a fixed price delivered basis in $/MMBtu.

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

The assessment would reflect barge-to-ship delivery.

Platts would also take into consideration truck-to-ship price information and normalize where appropriate to a barge-to-ship equivalent price.

The assessment would reflect bunker deliveries not less than 1,000 cu m, for 7-14 days ahead.

Pricing information for LNG bunker deliveries with other specifications and terms may be normalized to the proposed standard.

Platts would convert floating prices, or index-linked prices, to a fixed price equivalent for consideration in the final assessment.

The assessments would reflect market value at the close of Singapore trade at 4:30 pm Singapore time and would follow the Singapore publishing schedule.

Platts invites feedback on the above, and also specifically invites feedback on volume, timing and delivery basis to be reflected in the assessment.

The new assessments would be published in Platts LNG Alert pages, LNG Daily and Bunkerwire.

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Aug. 25.

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