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MMSA Methanol Notes PDF

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MMSA has developed prices for conventional methanol bunkers and conventional methanol energy equivalents in the

major global bunkering ports. These prices can be compared to values for marine gas oil (MGO) and very low sulfur fuel
oil (VLSFO) for reference. Findings to date indicate that location and fuel type have an impact on relative affordability.
The chart at left compares conventional
methanol bunker prices (MMSA MEOH
and MMSA MEOH-MGOe) against MGO in
Rotterdam. MEOH is represented by the
gray line, and is the cost in US dollars per
metric ton for the methanol fuel. The
dashed gray line shows the energy
adjusted value of methanol – the price in
US dollars per metric ton for the quantity
of conventional methanol that delivers the
energy equivalent of a metric ton of MGO.
The methanol prices are updated by
MMSA weekly. The black line represents
the Rotterdam MGO price in US dollars per
metric ton as quoted by Ship and Bunker
averaged for the week. Similarly, the chart
below shows MEOH and MEOH-VLSFOe
versus VLSFO in Fujairah.

MMSA’s markers for MEOH, MEOH-MGOe,


and MEOH-VLSFOe are available for
Singapore, Houston, Rotterdam, and
Fujairah (total of eight). These four
locations currently supply approximately 80
percent of the world’s marine bunker
needs. The values consider current spot
values of methanol in major ports plus
premia related accounting for local
bunkering costs including dock fees, barge
costs, throughput, and other adjustments.
MMSA is of the opinion that eventually,
stripping away other requirements such as
carbon intensity and or other combustion
emission properties, cost per unit of power
delivered will be a strong component of fuel
selection. Thus, the relationship between
the green and black lines are the most
important features of these charts,
reflecting the relative affordability of conventional methanol against marine fuels. When the green line is below the black
line, methanol has a cost advantage, and vice versa. At the moment, conventional methanol prices have a very different
set of determinants than marine fuels, and thus often move in different directions. For instance, in Rotterdam, after a
patch from May through October where methanol was highly affordable (and perhaps even favored – i.e. the dashed gray
line below the black line), recent price strength has leveled the playing field between the fuels. However, in Fujairah, which
sees the highest VLSFO prices and lowest methanol bunker values, methanol remains a potentially competitive alternative
marine fuel. Relationships for the other 6 combinations are also available and being updated weekly. MMSA is glad to
discuss methodology and assumptions with clients; the information is now available using this link.

2023 © MMSA Pte Ltd All rights reserved. All information in the Methanol Notes™ is for the sole and confidential use of the Client Company
and any subsidiaries of that company which qualify. The client agrees to use reasonable care to protect the Confidential nature of the articles.

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