SUBSCRIBER NOTE: Platts revises LNG shipping calculation assumptions

Platts has revised the assumptions used in its LNG freight cost assessments and LNG netback values. The revised assumptions are 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 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.

As previously announced, bunker bases will also be aligned to reflect normal trading patterns in the LNG market. For vessels lifting from Nigeria, the bunker base will be Bunker FO 380 CST 3.5% delivered Las Palmas/Tenerife (PUAFB00). For vessels lifting from Australia, the bunker base will be Bunker FO 380 CST delivered Singapore (PUAFT00).

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.

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