Course description
Specifically catering to LNG carriers, charterers and traders, this seminar scrutinises the commercial & legal aspects of LNG shipping; and sheds light on how LNG charter parties should be used in practice. Aimed at enabling attendees to excel in negotiation of chartering contracts and in ensuring performance obligations, the programme zooms in on major pitfalls to consider – including technical aspects pertaining to LNG cargo, vessels operations and cargo transfer; as well as trading issues that have important implications on clauses & provisions.
You will gain from practical lessons and exercises across a range of matters, including LNG time / trip chartering, boil-off and bill of lading, ship-to-ship transfer provisions, cargo quantity vs quality issues, newbuilding chartering vs existing ship charters, the key differences against oil tanker chartering and delivery obligation reviews.
Upcoming start dates
Outcome / Qualification etc.
- Ensure that all obligations arising from the contract / charter party are carried out, and that any necessary requirements are complied with.
- Deal with cargo and freight counter-parties, terminals and vessels on a regular basis regarding all pre and post-deal activities ensuring all necessary operational information is passed on in good time and documentary requirements are met
- Appoint independent inspectors, expeditors and ships agents.
- Ensure that all operational information is entered into Trading systems.
- Coach cargo and freight invoicing work as well as follow-up with diversion payments and clearances of accruals for both external and internal deals.
- Liaise with counterparts to ensure smooth operations, avoid delays and minimize demurrage costs.
- Thinking on your feet to deal with contractual problems ensuring that they are managed professionally and optimally for the trading business.
- Specifically seek to add value by exercising embedded commercial and logistical deal options and by pro-active approach to problem solving.
- Advise commercial colleagues on the workability of proposed contractual arrangements for new projects, new contracts and spot cargoes
- Agree supply schedules with third parties and calculate cargo prices.
- Carry out contractual volume reconciliations ready for the annual delivery program discussions.
- Ensure that all financial security is in place
- Efficiently manage the trade-offs between bunker consumption, boil-off and vessel speed (heel management) instructing the vessels Master accordingly.
- Close out the charter parties accounting for all costs and obtain sign-off from Chartering
- Arrange Bunkers and OPL activities as required by the vessel
- Devise optimal voyage plans working with the vessel and commercial colleagues
- Identify and exploit synergies with other parts of Shell Trading
- Ensure that LNG Operations complies with Shells internal standards incl. compliance and HSSE.
- Managing internal stakeholders e.g. Traders, Optimiser Traders, Finance, Stasco Shipping and Global Operations Commercial Services.
- Managing relationships with external stakeholders, counter-parties and service providers e.g. suppliers and customers, regulatory bodies, ship owners and agents, inspectors and survey companies.
Training Course Content
The Difference Between Chartering an LNG carrier and Chartering and Oil Tanker
- Introduction to carriage of LNG, boil-off and heel
- LNG Ships
- Materials and Strength of Ships
- The principal differences between a short-term charter for an oil tanker vs an LNG carrier
- The absence of voyage chartering in the LNG market
International Code for the Construction & Equipment of Ships Carrying Liquefied Gases in Bulk (IGC CODE )
- Brief Description of IMO
- Application of IGC Code
- Ship Survival Capability
- Ship Arrangements
Lng Ship Management
- Ship Management Systems
- Shore Organisation Structure
- Operation Department Duty and Responsibility
- Legal Department
- Ship Board Management
Lng Liability Regimes
- Conditions of Use
- The variety of liability regimes
- The International Group of P&I Clubs and the
- Pooling Limits
- The premium for market cover
- HNS Convention rather than CLC Convention, and limits of applicability
Delivery and Quality Obligations:
- In a ‘typical’ LNG MSPA, when must the LNG ship arrive, when must loading / unloading be completed
- What are the typical consequences for a delivery failure?
- What are the subtle differences to look out for when reviewing delivery obligations?
- Are damages calculated on quantity not taken/ delivered or full cargo lot?
- The consequences in a ‘typical’ LNG MSPA if an ‘off-spec’ issue is identified
- The subtle differences to look out for when reviewing delivery obligations (e.g. are damages calculated on the off-spec quantity or full cargo lot
- ‘indirect’ damages included in the calculation
- The regime for treatable and untreatable quantities
- Reject off-spec LNG if you are liable to pay your sub-buyer materially more than you can recover from your supplier
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London Maritime Academy
London Maritime Academy provides a wide range of maritime training courses tailored to the global industry. Located in London and known for international standards, we offer diverse Classroom and Online courses taught by highly experienced experts in the maritime sector....