COURSE OVERVIEW:

The LNG Shipping Economics and Freight Cost Calculations course provides a deep dive into the financial and commercial structures that underpin the transport of liquefied natural gas. This program analyzes the unique capital intensity of the LNG sector, where vessel construction costs and specialized technology create a distinct economic environment compared to traditional dry or liquid bulk shipping. Participants will examine the relationship between global gas demand, liquefaction capacity, and the resulting requirements for specialized tonnage.

The scope of this training involves a technical breakdown of the components that constitute the daily hire and the overall voyage cost of an LNG carrier. This includes a detailed look at financing costs, operating expenses, and the critical role of boil-off gas management as a factor in fuel economy. The program further explores the various forms of chartering arrangements prevalent in the industry, from long term project based charters linked to Sales and Purchase Agreements to the growing spot and short term master agreement markets.

Coverage extends to the complex mathematical models used to calculate freight rates and netback values. Participants will learn to account for canal tolls, port dues, bunkering costs using both traditional fuel and LNG, and the impact of heel requirements on cargo capacity. By blending maritime logistics with financial analysis, the course equips professionals with the expertise needed to evaluate the commercial viability of LNG trade routes and optimize the logistics chain for maximum profitability.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

1. Identify the core economic drivers of the global LNG shipping market.
2. Calculate the daily operating expenses (OPEX) specific to LNG vessels.
3. Determine the impact of capital expenditure (CAPEX) on long term freight rates.
4. Distinguish between Time Charter Equivalent (TCE) and Worldscale applications.
5. Calculate voyage costs including fuel consumption and boil-off gas values.
6. Evaluate the financial impact of Panama and Suez Canal tolls on LNG routes.
7. Perform Netback calculations to determine the profitability of different delivery points.
8. Analyze the structure of long term LNG Time Charter Parties.
9. Assess the economic differences between Steam, DFDE, and MEGI propulsion systems.
10. Calculate the cost implications of mandatory heel and tank cool down requirements.
11. Estimate port disbursement accounts for major LNG export and import terminals.
12. Model the sensitivity of freight costs to fluctuations in global LNG prices.
13. Utilize standardized tools for commercial bunkering and fuel switch analysis.

TARGET AUDIENCE:  

Commercial Managers, Fleet Analysts, LNG Traders, Shipowners, and Financial Controllers in the energy sector.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximise the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.