New Daily Cargo Ammonia Assessments Bring Transparency to Crucial Market
and Emerging Front-Runner in Energy Transition
SINGAPORE/ LONDON/ NEW YORK (October 13, 2021) – S&P Global Platts (Platts), the leading independent provider of information, analytics and benchmark prices for the commodities and energy markets, has launched daily anhydrous ammonia cargo price assessments.
Platts ammonia assessments will reflect delivered cargo prices on a CFR basis into Asia, Northwest Europe, and the US Gulf Coast, and cargo prices on an FOB basis loaded in the Middle East and the Black Sea, effective October 12, 2021. The assessments are published in USD per metric ton and in USD per MMBtu. Platts ammonia prices reflect established production technology, trade routes and uses.
The ammonia market is seeing increased investment due to the role it could play in the energy transition. Ammonia is set to play a pivotal role as a solution to the key transportation challenge in delivering a globally traded hydrogen market. Seaborne transportation of pure hydrogen is difficult, but it can be converted into ammonia and shipped on liquid petroleum gas carriers globally, making use of established waterborne supply chains. Liquid ammonia can be either used directly, for example as a ship fuel, or converted back to hydrogen and consumed within natural gas infrastructure
Alan Hayes, Head of Energy Transition Pricing at S&P Global Platts, said: "The ammonia market is set for significant growth as new projects come on stream in the coming years. One of ammonia's key benefits is that at the point of combustion it does not release any carbon dioxide, so it is a strong candidate to become an important energy transition fuel. Platts ammonia assessments are bringing transparency into the existing anhydrous ammonia markets but we intend to build on these initial launches to ensure that we reflect the role of ammonia as one of the emerging front-runners in the energy transition."
Platts ammonia assessments take into consideration cargoes with a minimum purity of 99.5% of anhydrous ammonia by weight, a maximum water content of 0.5% by weight, and a maximum oil content of 10 ppm by weight.
CFR Far East Asia assessments include 20,000-40,000 mt cargoes delivered to major ports in China, Japan, South Korea, and Taiwan; CFR Northwest Europe assessments will reflect cargo sizes of 20,000-25,000 mt delivered to major ports in Belgium, Germany, the Netherlands, and northern France; and, CFR US Gulf Coast basis Tampa, Florida with information from other USGC ports considered and normalized, will reflect cargo sizes of 20,000-25,000 mt.
Daily cargo assessments are also published on an FOB Middle East basis, reflecting cargo sizes of 15,000-40,000 mt for loading in ports in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates; and FOB Black Sea assessments will reflect cargo sizes of 15,000-40,000 mt for loading in ports in Ukraine.
For the CFR Far East Asia, CFR Northwest Europe and CFR US Gulf Coast, assessments represent parcels to be delivered 15-45 days forward from the date of publication. Daily assessments for FOB Middle East and FOB Black Sea are for parcels loaded 15-30 days forward from the date of publication.
For more information, please refer to subscriber note.
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