Following a formal consultation, S&P Global Platts will amend specifications for the New York Harbor 1%S fuel oil (assessment code PUAAO00) specifications effective January 4, 2021.
Platts will make four changes to the current specification:
- The addition of max Total Sediment Potential (TSP) of 0.1%
- The lowering of max water content from 1% to 0.5%
- The removal of minimum energy requirement of 151,000 BTU/gal
- The addition of a maximum cleanliness rating of 3 for cleanliness and compatibility
This follows a subscriber note that opened a consultation on all US Atlantic Coast fuel oil assessments that began on April 13: https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/041320-platts-opens-consultation-on-usac-residual-fuel-oil-assessments
Platts understands that there remains significant demand for 1% fuel oil in the US Atlantic Coast as a starting component for a blended marine fuel 0.5%S. Market participants said that there remains local production of fuel oil around 1%S in New York and the Canadian East Coast, and market fundamentals make an LSFO/distillate blend a viable option for many bunker suppliers.
Platts current specifications stipulate a minimum viscosity of 70 SSF and a maximum gravity of 18 API, reflecting residual fuel oil.
Platts understands that the addition of a max TSP of 0.1% would ensure the assessment reflects 1% fuel oil that can meet the requirements of a blending component for marine fuel 0.5%S. Alongside this, Platts will remove the current requirement of a sediment by extraction maximum of 0.1%.
Lowering the water content from 1% to 0.5% and removing a minimum energy requirement would further align the specification with bunker suitability.
In the initial consultation, Platts sought market feedback on whether the 1%S fuel oil assessment should move to a finished RMG specification. Market feedback suggested that consistently achieving a 1%S finished RMG specification is challenging given limited blending components available in the region.
Platts' NYH 1%S CIF assessment reflects fuel oil with an Al+Si content of maximum 80 ppm; nitrogen of maximum 0.5%; vanadium of maximum 150 ppm; minimum-maximum gravity of 10.1-18.0 API; minimum-maximum viscosity of 70-250 SSF; flash point of minimum 150 F; pour point of maximum 60 F; ash of maximum 0.1%; BS&W of maximum 1.0%; water by distillation of maximum 1.0%; sediment by extraction of maximum 0.1%; vanadium of maximum 150 ppm; sodium of maximum 60 ppm; asphaltenes of maximum 8%; minimum of 151,000 BTU/gal; H2S of maximum 50 ppm.
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