The Baltic Exchange’s new set of independent indices for LNG-powered vessels went live on 2 March, based on the number of carriers burning LNG, rather than marine fuel oil or marine gas oil, as their primary fuel.

Published twice weekly, the new indices have been given the acronym (BLNGg) and will be published alongside the current LNG indices which are based on LNG carriers burning very low sulphur fuel oil.

According to a Baltic Exchange statement on the launch of the new LNG-powered vessel indices, "Since the introduction of the 2020 global sulphur cap by the International Maritime Organization, the majority of LNG carriers have switched to LNG boil-off gas rather than burning low sulphur fuel oil, marine gas oil or installing emissions abatement technology."

The statement from the Baltic Exchange described "the new standard Baltic vessel" as having the following speed and consumption specification when burning LNG as a fuel:

• 17 knots on 210 m³ LNG/day laden
• 16 knots on 190 m³ LNG/day ballast
• 0.1% boil off
• Port consumption 42 m³ LNG/day idle
• Port consumption 85 m³ LNG/day working"

The Baltic Exchange said it will publish US$/day assessments for the BLNG1g Australia-Japan RV, BLNG2g US Gulf-Continent RV and BLNG3g US Gulf-Japan RV routes.

Derivatives management company CME Group said it plans to launch three new futures contracts based on the new Baltic Exchange indices on 22 March 2021, pending regulatory review.

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