Platts to launch Singapore, US Gulf methanol bunker fuel price assessments

S&P Global Platts will launch 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 this assessment was made following extensive research, as well as feedback from market participants after an earlier proposal on Sept. 27: https://bit.ly/3v9QJK5

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 will be assessing methanol bunkers delivered in Singapore based on the daily methanol CFR Southeast Asia spot assessment (AAWBA00).

The new assessment will include associated costs of storage, delivery from terminal to barge and delivery to the receiving vessel.

For the new US Gulf bunker fuel assessment, Platts will be assessing methanol bunkers delivered in Houston based on the daily methanol FOB Houston spot assessment (PHACF00).

This assessment will include the logistics costs from the terminal to the barge or truck, and charges for delivery direct to the receiving vessel.

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

The following factors will be 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 will be publishing 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 will use the following conversion factors:

- Methanol: 17.028 GJ/cu m and 0.792 mt/cu m

- Platts LNG Bunker Singapore (LNBSF00) : 23.40 GJ/cu m and 0.45 mt/cu m

- Platts Marine FO 0.5% Dlvd Singapore (MFSPD00): 40.631 GJ/cu m and 0.991 mt/cu m

- Platts Marine Gasoil 0.1% Dlvd Singapore (AAXYO00): 42 GJ/cu m and 0.94 mt/cu m

- Platts Marine FO 0.5% Dlvd Houston (MFHOD00): 40.631 GJ/cu m and 0.991 mt/cu m

- Platts Marine Gasoil 0.1% Dlvd Houston (AAWWX00): 42 GJ/cu m and 0.94 mt/cu m

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

The new assessments will be published in Petrochemical service of the Platts Dimensions Pro, Asian Petrochemicalscan publication, Platts Petrochemical Alert service, Platts Market Centre, Platts Bunker Add On and Platts bunker fuel publications.

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

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