Platts to amend Singapore blended B24 bio-bunkers assessment

Platts, part of S&P Global Commodity Insights, will amend its blended B24 bio-bunkers assessment in Singapore called Platts Bio-Bunkers B24 Singapore (ABUNA00), effective Jan. 2, 2024.

The change follows market feedback in favor of the revision of the B24 Bio-Bunkers methodology.

Platts first proposed these changes on Nov. 29: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/112923-platts-proposes-amending-singapore-blended-b24-bio-bunkers-assessment

Following market feedback, Platts brought forward the proposed effective date of change on Dec. 6: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120623-platts-proposes-amending-singapore-blended-b24-bio-bunkers-assessment

The Singapore delivered B24 bio-bunkers calculated assessment currently reflects a ratio of 76% fuel oil based on Platts benchmark Marine Fuel 0.5% Bunker Dlvd Spore $/mt assessment (MFSPD00) and 24% Used Cooking Oil Methyl Esther (UCOME) based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00).

The 24% UCOME is normalized to delivered basis using coastal freight in Singapore derived from Clean Singapore-Singapore 30kt MR Lumpsum (PFAEE00), storage costs in Singapore On-Shore Tanks (ABUNB00) and delivery costs that are calculated using the spread between Marine Fuel 0.5% Bunker Dlvd Spore (MFSPD00) and Marine Fuel 0.5% Bunker Ex-wharf Spore $/mt (MFSPE00).

Platts will update the normalization of 24% delivered UCOME, storage and barging costs.

The 24% delivered UCOME component of the calculated assessment will be based on the Platts UCOME FOB Straits $/mt assessment (UCFCB00) and the Clean Singapore-Singapore 30kt MR Lumpsum (PFAEE00) will be used as a proxy to derive the coastal freight to move UCOME to Singapore terminals.

The storage costs for biofuels and blending in Singapore On-Shore Tanks (ABUNB00) and B24 Bio-Bunkers Barging Cost (BBCAA00) will be fully accounted for.

In addition, Platts will reflect B24 bio-bunkers stem size ranging between 500 mt to 1,000 mt.

Platts will continue to review and update the storage and barging costs when needed and based on information received from the market, as typical.

This information will be published as price heards.

The assessment is published on Platts Biofuels Alert (PBF2500), in the Bunkerwire Report, Bunkerwire Monthly, Biofuelscan report and Biomass-Based Diesel Report.

Please send any comments or feedback to MRTS_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

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.