Platts launches Singapore and US Gulf methanol bunker fuel price assessments

S&P Global Platts has launched 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.

The decision to launch these assessments was made following extensive research and following feedback from market participants after an earlier proposal to assess methanol bunkers was first published in a subscriber note on Sept. 27, 2021 available here: https://bit.ly/3v9QJK5

The launch was confirmed on Oct. 18, 2021, in a subscriber note available here: https://tinyurl.com/22vts4x4

Research and development into these new assessments began as Platts identified a growing market demand for utilizing methanol as an alternative marine fuel amid an increased focus in reducing carbon emissions in shipping.

For the Singapore bunker fuel assessment, Platts assesses methanol bunkers delivered in Singapore based on the daily methanol CFR Southeast Asia spot assessment (AAWBA00). This new methanol bunker fuel assessment includes associated costs of storage, delivery from terminal to barge and delivery to the receiving vessel.

For the new US Gulf bunker fuel assessment, Platts assesses methanol bunkers delivered in Houston based on the daily methanol FOB Houston spot assessment (PHACF00). This new methanol bunker fuel assessment includes the logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel.

Both new assessments are published on a fixed price delivered basis in $/mt.

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 has also started publishing methanol bunker fuel calculations, converting to LNG and oil energy content equivalents, alongside the new assessments, enabling a standardized unit of measure in metric tons, for comparison with other marine fuels.

The following factors are used 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.

Separately, Platts publishes a set of 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, effective Oct. 25, 2021.

The cost comparisons 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 Singapore and Houston methanol bunker fuel assessments appear in Platts Petrochemical Alert pages PCA 198, 199, 654 and 1568 and Platts Bunker Alert pages PGB 560, 2852, 3963 and 3964, with cost comparisons in Platts Bunker Alert page PGB 2853 and Bunkerwire.

The new assessments also appear in Petrochemical service of the Platts Dimensions Pro, Asian Petrochemicalscan, Europe and Americas Petrochemicalscan, Platts Petrochemical Alert service, Platts Market Centre, Platts Bunker Add On and in the Platts price database under the following codes:

MLBSG00 Methanol Bunker Singapore $/mt

MLBSG04 Methanol Bunker Singapore $/mt WAvg

MLBSG03 Methanol Bunker Singapore $/mt MAvg

MLBSO00 Methanol Bunker Singapore (Oil) $/mt

MLBSO04 Methanol Bunker Singapore (Oil) $/mt WAvg

MLBSO03 Methanol Bunker Singapore (Oil) $/mt MAvg

MLBSL00 Methanol Bunker Singapore (LNG) $/mt

MLBSL04 Methanol Bunker Singapore (LNG) $/mt WAvg

MLBSL03 Methanol Bunker Singapore (LNG) $/mt MAvg

CVMLS00 Methanol Bunker Singapore Calorific Value $/GJ per cu m

CVLNS00 LNG Bunker Singapore Calorific Value $/GJ per cu m

MVMLS00 Methanol Bunker Singapore Calorific Value $/GJ per cu m

CVMFS00 Marine Fuel 0.50% Dlvd Singapore Calorific Value $/GJ per cu m

CVMGS00 Marine Gasoil 0.10% Dlvd Singapore Calorific Value $/GJ per cu m

MLBHT04 Methanol Bunker Houston $/mt WAvg

MLBHT03 Methanol Bunker Houston $/mt MAvg

MLBHO00 Methanol Bunker Houston (Oil) $/mt

MLBHO04 Methanol Bunker Houston (Oil) $/mt WAvg

MLBHO03 Methanol Bunker Houston (Oil) $/mt MAvg

MLBHL00 Methanol Bunker Houston (LNG) $/mt

MLBHL04 Methanol Bunker Houston (LNG) $/mt WAvg

MLBHL03 Methanol Bunker Houston (LNG) $/mt MAvg

The launch comes on the back of the first methanol bunker fuel assessment in Rotterdam on Sept. 27: https://bit.ly/3kGe1Ua

Please send feedback and questions to petchems@spglobal.com and pricegroup@spglobal.com.

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