Platts to launch several LNG freight assessments from July 1

Platts, part of S&P Global Commodity Insights, will launch several implied LNG freight assessments to reflect the trade flow in emerging demand centers, effective July 1, 2024.

Platts originally proposed the launch of these new LNG freight assessments in an April 30 subscriber note available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/050324-platts-proposes-to-launch-several-lng-freight-assessments-july-1.

Following market feedback, the port charges for LNG Canada and Batangas will be adjusted to $300,000 and $203,000, respectively. With the global seaborne LNG trade crossing over 400 million mt two years ago and expectations of it touching 500 million mt in five years, according to the International Energy Forum, market participants will require freight costs for shipments from new and existing LNG terminals to emerging demand regions.

Platts has identified many new emerging LNG trade routes that necessitate $/MMBtu freight cost assessments basis tri-fuel diesel-electric propulsion, or TFDE, type LNG carriers. The routes are as follows:

• West Coast Canada-North China
• Mozambique (Coral South FLNG)-Mediterranean
• Mozambique (Coral South FLNG)-West India
• Mozambique (Coral South FLNG)-North China
• Mozambique (Coral South FLNG)-Thailand
• Australia-North China
• Australia-Philippines
• Australia-Thailand
• Malaysia-Philippines
• Qatar-Thailand

The sailing days identified for the above routes are based on an average speed of 17 knots. The following variables are considered in the assessments: LNG Canada-Tianjin: 12 days; Mozambique (Coral South FLNG)-Barcelona (via Suez Canal): 15 days; Mozambique (Coral South FLNG)-Dahej: 7 days; Mozambique (Coral South FLNG)-Tianjin: 17 days; Mozambique (Coral South FLNG)-Map Ta Phut: 12 days; Gladstone-Tianjin: 11 days; Gladstone-Batangas: 8 days; Gladstone-Map Ta Phut: 10 days; Bintulu-Batangas: 2 days; Ras Laffan-Map Ta Phut: 11 days

The port charges for newly added ports are as follows:

• LNG Canada: $300,000
• Barcelona: $150,000
• Mozambique (Coral South FLNG): Free of port charges
• Tianjin: $250,000
• LNG Map Ta Phut Terminal 1 (LMPT1): $100,000
• Batangas (FSRU BW Batangas): $203,000

The other ports considered will apply existing port charges for TFDE vessels, as highlighted in the link available at /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/global_lng.pdf

These calculations will be in line with the existing freight cost assumptions.

For further details, please refer to /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/global_lng.pdf

The assessments will be published in Platts LNG daily and daily fixed pages LNG0600, LNG1600 and NG1058, and in the monthly fixed pages LNG1601, LNG0601 and NG1057.

Please send all feedback, comments and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

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