Platts proposes DES Rotterdam Bio-LNG bunker fuel assessment

Platts, part of S&P Global Commodity Insights, is proposing to launch a daily DES Rotterdam 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 Oct. 16, 2024.

Platts has observed growing consumption and production of bio-LNG in Northwest Europe, ranging from the transportation industry to maritime sectors, driven in part by the transition to lower-sulfur and lower-carbon fuels.

The new DES NWE 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 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 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 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 bio-LNG bunker fuel assessment would be for bunker deliveries 7-20 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. A conversion to $/mt of LNG would be published from the MMBtu assessment using a factor of 52.

Prices of trucked bio-LNG and bio-LNG bunkers delivered in Northwest Europe may be considered and normalized to the above specifications.

In addition, Platts would publish a price assessment reflecting the premium of Bio-LNG over LNG Bunkers in Rotterdam ( LNBRD00) and a differential to the Dutch TTF gas hub (GTFAD00).

The Bio-LNG NWE assessment would reflect material with sustainability documentation with a maximum carbon intensity of 28 g CO2e/MJ or an equivalent minimum greenhouse gas saving of 70% when compared with the fossil fuel comparator, as per the European Union's Fuel Quality Directive calculation, under RED III. This would be in addition to the prevailing Renewable Energy Directive requirement, with the highest requirement for GHG savings taking precedence.

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 Sept. 4, 2024.

Please send all feedback, comments, and questions to LNGeditorialteam@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.