SUBSCRIBER NOTE: Platts proposes North America 0.1%S bunker fuel assessments

In line with the introduction of new sulfur emissions rules for vessels in the Emissions Control Area around North America in 2015, Platts is proposing new assessments for an ECA-compliant, 0.1% sulfur bunker fuel, with effect from Monday, January 5, 2015.

From January 1, 2015, ships traveling within 200 miles of shore in the ECA must limit sulfur emissions from fuel to 0.1%, down from a current maximum of 1%, according to International Maritime Organization rules.

The regulations do not stipulate use of a specific fuel, which leaves open the door for multiple means of compliance.

Based on extensive consultation with market participants, Platts believes there exists the possibility for a new market to develop for an ECA-compliant bunker fuel that features aspects of residual fuel oils, which have traditionally been a component of bunker fuel, and less sulfur-intense distillate fuels. This likely new bunker fuel has been described by many market participants as a dirty gasoil.

The proposed new assessments for this product would be assessed on an ex-wharf basis in Houston and New York, and published in dollars per metric ton.

The proposed new assessment would reflect the following specifications:

Kinematic viscosity at 50 degrees C: Max 15 CST Flash point: Minimum 60 degrees C Sulfur: Max 0.1% Al+Si: Max 60 ppm Ash: Max 0.1% Cetane: Minimum 40

In addition to the above specifications, Platts is particularly interested in feedback on whether or not to include a minimum viscosity; whether or not to specify maximum water content; whether or not to specify a pour point for the fuel; and any other possible parameters that should be included.

This product is intended for use in ships and should follow normal market conventions around what is and is not acceptable in its makeup.

The assessment would reflect fuel loading on an ex-wharf basis, three to seven days forward from the date of assessment. The minimum stem size would be 200 mt and the maximum stem size would be 1,000 mt.

Platts will continue to publish its current assessments for marine gasoil, which is also ECA-compliant.

Please send feedback by December 17, 2014, to americas_bunkers@platts.com and pricegroup@platts.com.

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.