Oil price agency S&P Global Platts has approved Indonesia's Oiltanking Karimun Terminal in its Singapore pricing process for gas oil, jet fuel and gasoline cargoes, the company said in a note to subscribers on Thursday. Platts, a unit of S&P Global, will publish offers of oil product cargoes loading from the storage terminal in its pricing process, known as the market-on-close, from July 3, the company said.
The pricing agency will publish seller’s offers from Karimun on a free-on-board (FOB) Indonesia basis, where the seller needs to state the loading point as FOB Karimun at the time of indicating their interest to Platts for publication, Platts said.
This will the first Indonesian delivery point in Platts’ Singapore price assessment process. Other loading points outside Singapore that Platts includes in its oil product assessments include Malaysia’s Tanjung Langsat, Tanjung Bin, Pengerang and a few floating storage units. However, Platts said it will not publish FOB Indonesia bids and sellers may not unilaterally nominate Karimun as a loading point for deals done under basis of FOB Straits, which includes the terminals located outside of Singapore.
Platts will consider the published price information from FOB Karimun in its FOB Singapore assessments after normalization, which takes into consideration the differences in freight and port charges between Singapore and Karimun. The proposal was first mooted in March. The move is expected to offer more flexibility in loading cargoes and improve market liquidity, traders have said.
Oiltanking Karimun is a joint Venture between Oiltanking, which is a subsidiary of Hamburg- based Marquard & Bahls [MARQ.UL], and trader Gunvor Group [GGL.UL].
The Karimun terminal, with a total storage capacity of 730,000 cubic meters, was commissioned in mid-2016 and is aimed to serve the growing demand for oil products in Asia, according to Oiltanking’s website. It is supported by four jetties and is able to accommodate vessels up to 320,000 deadweight ton.
With Singapore unable to commit more land to commercial storage to serve trading companies, Indonesia and Malaysia have stepped up their investments in oil and chemicals storage infrastructure.
Platts, which provides Asian benchmark assessments for most oil products traded in the region, introduced a FOB Straits benchmark in July 2015 to include ports in Malaysia.
Jakarta Post, Page-13, Friday, June 2, 2017
No comments:
Post a Comment