Platts proposes to change LNG freight fuel assumptions

S&P Global Platts is proposing to change the fuel assumptions used in its LNG freight route costs, effective January 2, 2020.

This proposal comes on the back of market feedback highlighting recent changes in fuel usage on LNG carriers, in part due to the incoming IMO 2020 rules, but linked also to more competitive LNG prices as well.

Platts is proposing to change the assumption on fuel-consumption to boil-off gas-only. In other words LNG freight calculations will no longer reference fuel-oil. Given the existing assumption of 100mt/day at 17 knots, this means 5,200 MMBtu/day of fuel requirement met entirely by boil-off gas. The LNG price assessment used as the basis of the fuel cost assumption would be Platts JKM (AAOVQ00).

This proposal would not alter the other assumptions used to underpin its LNG freight route costs. The other assumptions would remain: modern conventional TFDE vessel, with a vessel capacity of 155,000-180,000 cu m, standardized to 165,000 cu m; boil-off: 0.12%/day while laden and 0.09% while ballasting.

Please send feedback, questions and comments to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by November 15, 2019. 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.