The sub-committee tasked with the development of a new standard voyage charter party for the transportation of LNG met recently for the third time in London, BIMCO said. The key issues under discussion are the allocation of responsibilities in respect of heel and boil-off of gas (BOG).
While the normal practice under an LNG time charter is for the charterers to assume the risk for boil-off, except when the vessel is off-hire, the situation is more complex when voyage charter party principles are applied where owners bear the risk of delay on the laden passage. The provision of cargo as fuel for LNG carriers works well in a time charter context, but for voyage charters where the owners normally provide and pay for fuel, a new mechanism needs to be developed that still permits the charterers to exercise some control over the amount of BOG used.
Although LNG cargoes are not currently traded during the voyage in the same way as oil cargoes, the sub-committee is contemplating what would need to be put in place in a voyage charter and bill of lading to allow for such trading.
The sub-committee benefits from a broad input from industry representatives from Exmar, Mitsui O.S.K. Lines (MOL), Platou, Vitol, Shell and GIIGNL. Work on this project will continue beyond the summer and the sub-committee hopes to have a first draft ready to present to the Documentary Committee at its meeting in November in Copenhagen this year.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/lng-shipping/24072014/sub-committee-focuses-on-boil-off-gas-from-lng-carriers-1060/