LNG
Composition and heating value set in the contract
Reference terms
We contract to recognised specifications, so quality can be tested by any independent laboratory.
| Product | LNG |
|---|---|
| Reference specification | Composition and heating value set in the contract |
| Usual unit | MMBtuWhat an MMBtu is: U.S. Energy Information Administration: energy units (opens in a new tab) |
| Quality verification | An independent inspection company samples and tests the product at loading and issues certificates of quality and quantity. A buyer may appoint its own inspector at discharge. |
| Delivery terms | FOB, CFR, CIF and DAP under Incoterms 2020International Chamber of Commerce: Incoterms rules (opens in a new tab) |
| Contract | Spot cargoes and term supply with fixed monthly liftings, where the supplier’s program allows |
| Price basis | Tied to a published benchmark or assessment, with the differential stated |
| Availability | Depends on supplier programs at the time of inquiry |
From offer to settlement
Product moves one way and payment moves the other. Every step between them is written down before either starts.
Inquiry
You send product, specification, volume, delivery term and destination.
Verification
Both sides pass know-your-customer checks and sign confidentiality agreements.
Offer and contract
The seller issues a firm offer. The contract fixes price basis, schedule, inspection and payment.
Loading and inspection
An independent inspector certifies quantity and quality. Shipping documents are checked.
Delivery and settlement
The buyer takes delivery and payment is released against documents.
