01 Mar 2021 | 13:14 UTC — New York

Platts updates boil-off, Panama Canal assumptions in LNG netback calculations

S&P Global Platts has made several updates to underlying assumptions in its LNG netback calculations effective March 1, 2021.

Specifically, Platts has updated assumptions around boil-off volume in its calculation of delivered LNG volume, as well as the journey time for specific Panama Canal routes.

Platts will subtract supplementary boil-off volume from the delivered volume in its LNG netback calculations.

Platts already assumes a natural boil-off rate of 0.12 percent/day on the laden leg and 0.09 percent/day on the ballast leg in its LNG netback calculations.

The impact on freight costs will be minimal.

For example, for a voyage between Dampier, Australia and Futtsu, Japan, the delivered volume used in Platts netback calculations has dropped to 3,641,100.73 MMBtu from 3,664,061.12 MMBtu.

On Jan. 18, the change in the boil-off volume would not have impacted the cost of freight, which would have remained unchanged at $1.35/MMBtu.

Additionally, Platts has added one additional day of voyage time each way for routes through the Panama Canal.

This aligns the US Gulf-Japan/Korea Freight Cost via the Panama Canal with the USGC-Japan Time Charter Rate, whereby the number of round-trip days is 51 (23 days each way, three days for loading and discharge, and two days for Panama Canal Transit).

As part of this change, Platts will amend the labels of the following codes:

Current name
Symbol
New Name
LNG Panama Canal Water Level Day 41
APCWE00
LNG Panama Canal Water Level Day 42
LNG Panama Canal Water Level Day 42
APCWC00
LNG Panama Canal Water Level Day 43
LNG Panama Canal Water Level Day 50
APCWF00
LNG Panama Canal Water Level Day 51
LNG Panama Canal Water Level Day 51
APCWD00
LNG Panama Canal Water Level Day 52
LNG Panama Canal Surcharge Day 41
APCSE00
LNG Panama Canal Surcharge Day 42
LNG Panama Canal Surcharge Day 42
APCSC00
LNG Panama Canal Surcharge Day 43
LNG Panama Canal Surcharge Day 50
APCSF00
LNG Panama Canal Surcharge Day 51
LNG Panama Canal Surcharge Day 51
APCSD00
LNG Panama Canal Surcharge Day 52

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