SUBSCRIBER NOTE: Platts to revise LNG shipping calculations assumptions

Following industry feedback, Platts will be revising the assumptions used in its LNG freight cost assessments and LNG netback values.

The standard shipping assumptions will now be: average speed 17 knots, vessel size 155,000-180,000 cu m, fillable volume of 98.5%, fuel oil consumption 100 mt/day of IFO380 CST and a boil-off gas factor of 0.12% when laden and 0.09% when on ballast. Heel will be calculated as 0.09% natural boil off while on ballast, multiplied by the number of days of the return leg plus 36 hours. Bunker bases will be aligned to reflect normal trading patterns in the LNG market. Basis gas price for boil off and heel will be calculated using the delivered price of LNG or a relevant proxy where an assessment is not available. Cost of charter will be for the entire voyage, accounting for a round-trip and a three-day loading/delivery time, and dividing that cost by the total delivered cargo in MMBtu.

The revised assumptions would become effective January 4, 2016 on page NG1025 of Platts Natural Gas Alert and in the Shipping and Price tables on pages 3 and 6 of the LNG Daily newsletter and on the Platts LNG Navigator and Platts Market Center services.

The LNG carrier market for single-voyage spot charters has been changing, as the available spot LNG fleet shifts to newer tonnage following a recent influx of new build vessels. These changes have prompted a revision of the current standard shipping assumptions for vessel size, leftover heel, fuel oil consumption, vessel speed and boil-off gas which are no longer representative of the current spot fleet composition.

These changes have taken into consideration current fleet composition for spot vessel availability.

Please send all questions and feedback to max.gostelow@platts.com and lng@platts.com.

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