Platts to launch Indonesia LSWR V-500 assessment

Platts proposes to launch a new assessment for the V-500 grade of Indonesian Low Sulfur Waxy Residue, effective October 1, 2010.

The assessment will be published on a daily basis, and labeled LSWR.

Indonesia's Pertamina has been reducing production and exports of mixed/cracked LSWR since June 2010, and currently exports only V-500 quality LSWR from Balikpapan and straight run LSWR from Dumai.

Quality specifications for V-500 grade LSWR typically show a maximum sulfur content of 0.3% sulfur, a maximum viscosity of 150 CST maximum at 140 degrees Fahrenheit, and a maximum pour point of 130 degrees F.

As Pertamina is expected to migrate exports towards new grades of LSWR quality after 2012, including potentially V-1000 and/or V-1250 grades, Platts will monitor liquidity in all existing and futures grades of LSWR and potentially amend the underlying specifications of its new LSWR assessment to reflect prevailing market trends through time.

Following the launch of this new assessment, Platts expects to continue its existing LSWR Mixed/Cracked assessments, which will be assessed as differentials to the tradable V-500 grade of LSWR.

Platts is also inviting industry comment regarding the continuation of its existing LSWR Mixed/Cracked price assessment.

For comments, please contact asia_products@platts and pricegroup@platts.com by September 17, 2010.