Platts launches several LNG freight assessments

Platts, part of S&P Global Commodity Insights, has launched 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 a May 3 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 the decision note sent June 3 and available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/060324-platts-to-launch-several-lng-freight-assessments-from-july-1, 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 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: $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 ships, as highlighted in the link available at https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/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 https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/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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