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 , 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.

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