Platts to launch new Singapore bio-bunkers market-based assessments

Following industry feedback, Platts, part of S&P Global Commodity Insights, will launch a new daily market-based delivered bio-bunkers Singapore assessment, effective Aug. 1, 2024.

Platts has observed growing interest for blended bio-bunkers in Singapore, the world’s largest bunkering hub, amidst increasing pressure on the shipping sector to move towards decarbonization.

At present, Platts publishes a daily cost-based B24 Singapore bio-bunkers assessment reflecting 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). Platts originally proposed the launch of the new assessments on April 23, in a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/042324-platts-proposes-to-launch-singapore-bio-bunkers-market-based-assessment

The new market-based assessment will reflect standards set in the document ISO 8217:2017, specifications of marine fuels, as well as standards set by Singapore’s Maritime Port Authority on specifications of marine biofuels (WA 2:2022). Platts recognizes the new I SO 8217:2024 – Specifications of marine fuel, and will consider indications using this standard within the assessment.

The new assessment will reflect marine fuel blends of maximum 24% biodiesel with low sulfur fuel oils. Platts will publish the prices of Singapore bio-bunkers as a differential to Platts Marine Fuel 0.5% (AMFSA00), and as an outright assessment.

The assessment specifications will be as follows:
Assessment Pricing basis Contract basis Delivery period Volume
Bio-Bunkers Singapore LSFO Outright Delivered 10-20 days forward 500 mt – 1,000 mt
Bio-Bunkers Singapore LSFO Differential to Platts Marine Fuel 0.5% (AMFSA00) Delivered 10-20 days forward 500 mt – 1,000 mt

Other delivery period and volume may be considered in the Platts Market on Close assessment process and normalized back to the above specifications.
Bio-bunkers stems must adhere to a proof of sustainability obtained in the framework of voluntary schemes approved by the EU Commission, such as ISCC or RSB.

Platts will not consider bio-bunkers that use PME (Palm Oil Methyl Ester) as a bio-component.
The new daily bio-bunkers assessment would be timestamped to 5:30 pm Singapore time.
Platts spot price assessments consider market information reported to Platts and published throughout the day, including firm bids and offers, transactions and indications of value.

In the absence of observable spot market activity, Platts may consider other verifiable data reported.
Platts observes direct market activity as well as the effect of movements in related markets through spread differentials, for example.
This information will be published as price heards.

The assessment will be published on Platts Biofuels Alert (PBF2500), in the Bunkerwire Report, Biofuelscan report and Biomass-Based Diesel Report.
Source: S&P Global Platts