Course description
The LNG shipping sector has also been evolving rapidly in recent years in response to accelerated growth in the international gas markets and - as in other parts of the LNG supply chain - technological innovation is seen as the means of optimising costs and increasing cargo outturn. New players have entered the LNG shipping business and the LNG industry is increasingly looking for more flexible shipping arrangements. Larger ships, innovative ship designs, new containment and propulsion systems have been developed while safety and environmental factors remain foremost considerations in the construction and operation of these vessels.
This intensive three-day course is designed to take participants through all of the commercial, technical, operating, legislative and legal issues affecting the shipment of LNG from export to import terminal. This is accomplished through a combination of presentations, exercises and case studies under the direction of a team of expert speakers with practical experience of the LNG industry and shipping. The aim is to give participants the ability to assess opportunities and manage operational and commercial risks in LNG shipping.
This course on LNG shipping is presented in the context of the overall LNG supply chain:
- How commercial shipping arrangements sit among the range of other agreements which exist between LNG producers, liquefaction parties, terminal operators;
- How the shipping contract overlaps with GSA’s, SPA’s and import/export agreements;
- The commercial, technical, regulatory, financial, legal and security risks that extend along the supply chain and which require the harmonization with the shipping sector;
- Managing and optimising risk along the supply chain.
LNG transportation accounts for 10% to 30% of total LNG supply chain costs from upstream gas production through to terminalling and regasification on the import side. It is central, both figuratively and physically, to the LNG supply chain and the safe, efficient execution of LNG supply contracts.
What You Will Learn
- The key drivers for LNG shipping
- The development of the LNG carrier fleet, the outlook for the market and key players
- Vessel operating costs and the determination of freight rates
- Choices over the design of LNG carriers
- Calculating vessel requirements
- The impact of sales agreement terms on shipping
- Shipping contracts and charter parties
- LNG marine terminal operation
Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.
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Suitability
Delegates encouraged to attend include commercial and financial specialists, operators, planners and analysts working in shipping companies. In addition, sales, marketing and commercial personnel from LNG producers, suppliers and importers. For example, national producer companies, international oil and gas companies, utilities and industrial gas consumers are urged to attend. Port authorities and terminal operators, individuals and companies new to the LNG sector, bankers and lawyers advising on LNG and LNG shipping, terminal and supply projects, and regulators and government organisations having an interest in the LNG sector will find the course valuable.
Content
LNG Consumption and Production Trends - The Drivers For Shipping
- LNG market fundamentals
- Potential consumption growth trends by region
- Sources of supply
- LNG projects
LNG Vessels and the Market
- Ship characteristics
- Vessel types
- Growth and future development of the World LNG carrier fleet
- Demand and supply for LNG carriers
- Charter rates and the developing spot market
- Key players - shippers and ship owners
LNG Ship Design and Technical Considerations
- Including the calculation of shipping requirements
LNG Ship Operating Costs
- Ship prices and capital costs
- Fixed operating costs (for example, manning, repairs and maintenance, insurance)
- Voyage costs
The Evaluation of Shipping Economics and Calculation of Freight Costs
- An Exercise in Calculating LNG Freight Costs
The Impact of LNG Sales Agreements on Shipping
- Obligations
- Transfer of title: Advantages and disadvantages of FOB, ex-ship versus CIF sales; Specification of transfer of title
- Tort liabilities, duties of care etc.
- Tax implications: eg permanent establishment
- Social responsibility and civil liabilities
- Permissions approvals and permits
- Export
- Import
- Arbitration provisions
- Transportation, berthing, unloading
- Mixed fleets (eg membrane and Moss-Rosenberg) and laid-up vessel provisions
- Deliveries: full cargo lot deliveries; implications of co-mingling cargos on, for example, delivered quality; measurement and analysis; buyer’s obligations for delivery facilities and port services; safety
- Demurrage, ship priority and force majeure and burden of proof
LNG Shipping Contracts
- Types of shipping contract
- Key commercial terms
- Key technical issues
- Contract management
LNG Charter Parties
LNG Supply Chains, Ownership and Pricing Arrangements - Managing Risk and Optimising Value
LNG Marine Terminal Operations
- Terminal site selection, design, safety considerations
- Terminal storage and load/discharge schedule – simple exercise
- Port authority support and controls
- Ship and shore compatibility
- Terminal and shipboard operations
- Unusual operations – cool down/warm up and inerting
- Ship to ship transfers
- Reliquefaction ships
LNG Shipping Game
- 'Charterers' and 'Ship Owners' compete with the former aiming to fix their cargoes at optimum freight levels and the latter seeking to maximize earnings on their vessels.