SUBSCRIBER NOTE: Platts to launch LNG Bunker Fuel price assessments

S&P Global Platts has launched LNG Bunker Fuel assessments, reflecting the value of LNG used as a marine fuel, in the ports of Singapore and Rotterdam, effective September 2, 2019. Platts launched these assessments on the back of increased build-out in infrastructure and trade of LNG as a marine fuel in these two major bunkering hubs. Platts will publish these assessments on a flat price basis in $/MMBtu in Singapore and on Eur/MWh in Rotterdam. In determining the assessment Platts will consider the prevailing tradeable value of LNG bunker fuel in the locations on a truck-to-ship (ex-wharf) or barge-to-ship (delivered) basis. Platts will assess the differential from the nearest LNG price assessment or netback published by Platts, publishing the final assessment on a flat price basis. In Singapore this would be an FOB Singapore netback from JKM (AAOVQ00); in Rotterdam this would be the spot LNG Northwest Europe (AASXU00) assessment, while other local gas hubs may also be considered as the basis for the Rotterdam assessment. The LNG bunker fuel assessment flat price includes the logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel. Platts will also publish $/mt conversions for both Singapore and Rotterdam LNG Bunker Fuel assessments. These $/mt price series will be converted from the MMBtu and MWh assessments to a metric tonne of fuel oil equivalent. For the MMBtu to metric tonne conversion, Platts will use a factor of 38.643; for the MWh to metric tonne conversion, Platts will use a factor of 11.322. Platts has been publishing Marine Fuel Oil and Bunker prices in many ports globally for many years. These assessments will be published in Platts LNG Daily from September 2, 2019. Platts invites all questions and feedback to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

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