Platts proposes to launch Singapore and US Gulf methanol bunker fuel price assessments

S&P Global Platts is proposing to launch two new daily methanol bunker fuel price assessments, reflecting the value of methanol used as a marine fuel at the ports of Singapore and Houston, effective Oct. 25, 2021.

Platts recognizes growing market demand on the back of an increased build-out in vessels utilizing methanol as a marine fuel and related activities at these major bunkering hubs.

The proposal follows this week's launch of the first methanol bunker fuel assessment in Rotterdam on Sept. 27: https://bit.ly/3kGe1Ua

The new assessments would be published on a fixed price delivered basis in $/mt.

Platts is proposing to assess methanol bunkers delivered in Singapore based on the daily methanol CFR Southeast Asia spot assessment (AAWBA00).

The assessment would include associated costs of storage, delivery from terminal to barge and delivery to the receiving vessel.

For Houston, Platts is proposing to assess the associated costs from its daily methanol FOB Houston spot assessment calculated in $/mt (PHACF00), publishing the final assessment on a flat-price basis.

The methanol bunker fuel assessment flat price would include the logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel.

As spot activity emerges in these nascent markets, Platts assessment approach may evolve accordingly; the proposed assessments may consider the prevailing tradable value of methanol bunker fuel on a barge-to-ship (delivered) or truck-to-ship (ex-wharf) basis and may take into consideration other local methanol bunkering hubs.

Platts is additionally proposing to publish methanol bunker fuel calculations converted to LNG and oil energy content equivalents, enabling comparison with other marine fuels, using the following factors to convert the methanol price from metric tons:

- Methanol bunker fuel value as LNG equivalent: 52 GJ/mt for LNG, 21.5 GJ/mt for methanol;

- Methanol bunker fuel value as marine fuel oil equivalent: 41 GJ/mt for marine fuel oil, 21.5 GJ/mt for methanol.

Alongside the proposed launch of methanol bunker fuel assessments, Platts is further proposing to publish daily cost comparisons for alternative marine fuels, reflecting the calorific value comparison of methanol bunker fuel, LNG bunker fuel, marine fuel oil and marine gasoil, also from Oct. 25, 2021.

The proposed comparisons would use the following conversion factors:

- Methanol: 17.028 GJ/m3 and 0.792 mt/m3;

- Platts LNG Bunker Singapore (LNBSF00) : 23.40 GJ/m3 and 0.45 mt/m3;

- Platts Marine FO 0.5% Dlvd Singapore (MFSPD00): 40.631 GJ/m3 and 0.991 mt/m3;

- Platts Marine Gasoil 0.1% Dlvd Singapore (AAXYO00): 42 GJ/m3 and 0.94 mt/m3.

- Platts Marine FO 0.5% Dlvd Houston (MFHOD00): 40.631 GJ/m3 and 0.991 mt/m3;

- Platts Marine Gasoil 0.1% Dlvd Houston (AAWWX00): 42 GJ/m3 and 0.94 mt/m3.

The new assessments would be published in Platts Petrochemical Alert with the cost comparisons featuring in Platts bunker fuel publications.

Please send feedback and questions to petchems@spglobal.com and pricegroup@spglobal.com by Oct. 9, 2021.

Specifically, Platts seeks comments on the calculation method for logistics costs.

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.