Anatomy of LNG Shipping & Operations

Aim: To gain a full understanding of marine transport in the LNG value chain; from Design & Engineering, Vessel and Terminal Operations, Voyage Economics and Chartering to Trading.

The learning pathway consists of interactive modules and a number of case studies that are aimed to plug knowledge gaps and stimulate discussion about industry practices and future trends. Starting with the origins of LNG seaborne trade, individual modules cover current and future trends in cargo containment and handling as well as propulsion systems, including LNG as fuel.

Modules on ship and terminal operations and their interface will lead to a full understanding of the fundamentals for voyage economics, freight costs and the principles that determine hire rates. This will then be applied in a broader context to understand the drivers for LNG pricing, general supply / demand and arbitrage opportunities with freight as an enabler.

The concluding and interactive chartering modules will cover the commercial and legal aspects of charter party contracts, LNG-specific clauses, negotiations and market fundamentals.

OPENING SESSION

  • Introductions, Expectations and Deliverables
  • LNG vs Natural Gas, Physical properties, Cryogenics
  • Origins of LNG ocean transport
  • Early projects and their evolution

CARRIER DESIGN and PROPULSION

  • Fundamentals of general and LNG carrier design
  • Cargo containment systems — past, present and future
  • Trends in on-board reliquefaction
  • Propulsion Systems — drivers for their evolution
  • DFDE vs MEGI vs WinGD
  • LNG as fuel (including for non LNGC)
  • Orderbook by type and size, building yards and construction costs

LNG TERMINALS

  • Pre-construction planning process of LNG production and receiving facilities
  • Components of a typical LNG production plant
  • Annual Delivery Programme and Scheduling
  • Design Features of Load and Discharge Facilities (Tanks, Terminal, Regas Unit)
  • Floating production, storage and regassification (FLNG, FSU, FSRU
  • Terminal operations (line cooling, emergency shut-down)
  • Custody transfer and Outturn Volumes
  • Ship/Shore compatibility

VESSEL OPERATIONS

  • Tank Utilisation Cycle (full and trading)
  • Purging, Drying and Gas-Up
  • Cargo Heel and Boil-Off Rate
  • Ship-Shore Checklist: pre-cargo, cool-down and bulk operations
  • Top-off, Fill-limits, End of cargo, Draining and Purging
  • Cargo and Engine Control Rooms
  • Reliquefication Units
  • Gauging systems and Pumps
  • High- and Low-Density Compressors
  • Gas Combustion Units (GCU)
  • IMO Conventions, Flag States and Registries
  • Classification, Vetting and SIRE inspections
  • Insurance: P&I, H&M, Cargo, War Risk, Charterers Liability
  • Terminal Acceptance and Officer Experience Matrix
  • Crewing Costs and LNG specific requirements
  • Emergency Response, Piracy and General Security
  • Repair and Maintenance and Operating Cost Structure

VOYAGE & DEAL ECONOMICS

  • Fundamental Cost & Revenue Criteria, Deal vs Voyage Economics
  • The construct and cost allocations in a Charter Party and Cargo Contract
  • Freight vs Hire vs Time Charter Equivalent (Daily Value)
  • Owner vs Charterer — perspectives on Earnings and Unit Cost
  • Vessel Utilisation, Tramping, Positioning and Freight Book Structure
  • Mini Case Study: Unit cost to charterer and return to ship owner
  • Heel retention — Economic and Contractual considerations
  • Case Study: Contract terms and margin expectation
  • Demonstration of LNG Voyage Cost Calculator
  • Criteria for measuring vessel earnings and monitoring performance
  • Different vessel operating models: project vessels, third party T/C and spot
  • Speed, Consumption, Due Dispatch and E2E efficiency in the Supply Chain
  • Voyage Orders and Communications Protocol
  • Examples of performance monitoring systems
  • CAPEX and OPEX: new build vs second hand
  • Yard selection, tender process and contract negotiations
  • OPEX adjustment clauses in Charter Parties

LNG PRICING and TRADE FLOWS

  • Freight in early LNG projects
  • Evolution of US and European gas and LNG markets
  • Japan, the original driver for Asian LNG project and markets
  • Evolution of Asian LNG market
  • Freight and commodity price arbitrage, evolving global flows
  • S-curve and Gas Hub pricing, merchant terminals and FOB sellers
  • Natural Gas in the global and regional energy mix
  • LNG as share of the gas market, gas on gas competition
  • LNG Supply and Demand, current and forecast

CHARTERING

  • Definitions: Owner, Operator, Charterer, Shipper
  • Chartering Chains and the difference with the Cargo Contract
  • The "Holy Trinity": C/P, B/L and Cargo Contract
  • Ship owner vs Charterer: clashing objectives
  • Procuring Ocean Freight — a Process Map
  • Evolving ownership of LNG carriers and their impact
  • Relative size of owners and operators, barriers to entry
  • Why is Time Charter the default format in LNG?
  • "Life of a Charter" process map
  • Main Formats of LNG T/C and Standard Clauses
  • Overview of LNG specific clauses (speed, performance, BOG, etc.)
  • Case Study: "The Chartering Game"
  • Conclusion and review


LNG Carrier

Course information

21-24 October 2019
M Hotel Singapore

M Hotel

Course venue and fee

The venue for the course is the M Hotel in Singapore — part of the Millennium Hotel Group. The fee is USD3600 which includes all documentation, light refreshments and lunch each day. Accommodation is NOT included but is available at the venue or one of the many hotels located nearby.

Further information on this programme or to register your interest, contact:
Registrations Department
Cambridge Academy of Transport
48 Whitlesford Road
Little Shelford
Cambridge CB22 5EW
UK
Email: You must enable JavaScript to see this e-mail address.

Programme and Booking Form

To download a programme giving fuller details of the course,  click here.

For a Booking Form,  click here.