* First Indonesian delivery point in Platts' Singapore
* To start publishing offers from July 3
By Jessica Jaganathan
SINGAPORE, June 1 Oil price agency S&P Global
Platts has approved Indonesia's Oiltanking Karimun Terminal in
its Singapore pricing process for gasoil, 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
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
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
, and trader Gunvor Group.
The Karimun terminal, with a total storage capacity of
730,000 cubic metres, was commissioned in mid-2016 and is aimed
to serve the growing demand for oil products in Asia, according
to Oiltanking's website.
(Reporting by Jessica Jaganathan; Editing by Christian