Baltic Exchange Adds New LNG Fueled Maritime Gas Ratings

Posted on March 7, 2021 1:38 PM by

The Maritime Executive

A new set of independent indices for maritime liquefied natural gas (LNG) trade went live this week (March 2), based on carriers burning LNG, rather than marine fuel oil or marine gas oil, as fuel major.

Published twice a week, the new indices bear the acronym (BLNGg) and will be published alongside the current LNG indices which are based on LNG carriers burning very low sulfur fuel oil (VLSFO). Historical data for the new indices will be available from January 1, 2020.

The new standard Baltic ship has the following speed and consumption specifications when burning LNG as fuel:

17 knots on 210 m3 of LNG/day loaded
16 knots on ballast of 190 m3 LNG/day
0.1% boiling
Port consumption 42 m3 LNG/day inactive
Port consumption 85 m3 LNG/working day
Daily US dollar ratings are available on the following routes:

BLNG1g Australia to Japan RV
BLNG2g RV US Gulf to Mainland
BLNG3g US Gulf to Japan RV
CME Group plans to launch three new futures contracts based on the new Baltic Exchange indices on March 22, 2021, pending regulatory review.

“As LNG markets continue to evolve globally, the demand for new tools to manage the risks associated with its transportation is also growing rapidly,” said Peter Keavey, global head of energy at CME Group. “The introduction of contracts based on the use of LNG as bunker fuel on global shipping routes is the next step in the evolution of cargo and provides another market-based solution to help our customers manage their gas risk. global.”

Since the introduction of the 2020 Global Sulfur Cap by the International Maritime Organization (IMO), the majority of LNG carriers have switched to LNG boil-off gas rather than burning low sulfur fuel oil, marine gas oil or install emission reduction technology. The evaporation process allows the naturally evaporating LNG cargo to be sent to the engine room and burned by the main boilers as fuel.

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