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.


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


  • 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


  • 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


  • 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


  • 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


  • 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


  • 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

21-25 June 2020
Madingley Hall

Madingley Hall

Book Now

The current fee for this residential programme is £4,290 (£3,575 plus £715 UK Value Added Tax) and covers tuition, documentation, private en-suite accommodation at Madingley Hall, all meals and a social programme. A rendezvous has been arranged at a central London hotel following which there is complimentary transport to Cambridge.

Programme and Booking Form

To download a Programme and Timetable, Click Here

For a Booking Form,  click here.