Platts launches several LNG freight assessments July 1

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

Platts originally proposed the launch of these new LNG freight assessments in a May 3 subscriber note. Following the decision note sent June 3, the LNG Canada port charges have been adjusted to $275,000 after market consultation.

With 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 EnergyForum, 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-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: seven days
• Mozambique (Coral South FLNG)-Tianjin: 17 days
• Mozambique (Coral South FLNG)-Map Ta Phut: 12 days
• Gladstone-Tianjin: 11 days
• Gladstone-Batangas: eight days
• Gladstone-Map Ta Phut: 10 days
• Bintulu-Batangas: two days
• Ras Laffan-Map Ta Phut: 11 days.

The port charges for newly added ports are as follows: LNG Canada: $275,000; 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 highlighted here.

These calculations will be in line with the existing freight cost assumptions. For further details, please refer to our methodology.

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.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and make those not marked as confidential available upon request.