About this Training Course
The transportation of LNG by ships has been traditionally linked to Gas Sales Agreement from producers to buyer over a horizon of 20 to 25 years. The trend has changed and is evolving over the last 10 years. Despite the falling oil prices, production of NG has been increasing. The demand for LNG has also been growing at a much faster pace in both undeveloped and developed economies of Asia. There is a steady increase in number LNG Tankers trading in M-E to Asian routes. The futuristic trend would be on use of LNG as a fuel for ships to replace low Sulphur bunkers. This requires bunkering hubs for LNG and increasing need for transportation from producing countries to bunkering hubs. It is becoming essential to adopt LNG specific Charter Party Agreements to avoid the ambiguity of dormant clauses when using Charter Party Forms for petroleum tankers.
This course and workshop is exclusively developed “by and for” the professionals, engaged in niche segments of Gas Tankers (Ship Owners, Charterers, LNG Traders, Terminal and Ship Operators) for LNG cargoes. Whether Gas sales rates are high or low, LNG tankers have to recover daily running costs of a vessel, but to manage risks of contemporary trends, the terms of engagement or the Charterparty must be reviewed strategically. One has to ensure that all risks are well apportioned and appropriately mitigated. The increasing use and number of Floating LNG Storage Vessels in South Asian countries, poses new and unknown risks for Gas tankers.
In this 3-day workshop, the participants will be able to acquire expertise from real life experiences enabling them to deal better with the contemporary challenges facing Gas Export, Import and transportation by Gas Tankers. Some of the key challenges addressed in this intensive workshop are:
- Making a Choice of the Charterparty Form (SHELLTIME4, BPVOY, ASBATANKVOY, GASVOY, GASTIME, BPTIME, GIIGNL LNGVOY) in context of type of Cargo, Vessel Type, terminals and duration
- Comprehensive Risks Identification, Evaluation and Mitigation Strategies:
- Computation and allocation of idle time
- Explicit measurement criteria for Lay time and Demurrage Claims
- Implication of SIRE and Obligations of the Owners
- Termination of Time Charters for Cause and for Convenience
- Can the delays in damage repairs be considered as a breach?
- Fall in Market Prices and Restructuring of the existing Time Charterparty
- Tank Inspection, Cleaning, Conditioning and Risk of Contaminants
- How much time and cost can a Charterer pay for tank cleaning and disposal of reserves
- Liabilities of Charterers for cargo tank debris / damage
- Liability of Terminal Operators and service providers in causing contaminations
- Performance Obligations of the Parties as per the Charterparty Agreement
- Charterer’s Obligations, Bunkers and Boil-off Gas Usage Limits
- Owner’s Obligations and Liabilities, ROB, Limits of Boil-off and Cargo Loss
- Bills of Lading and Responsibility Assignment Matrix
1. What is an LNG charterparty?
An LNG charterparty is the contract that governs the commercial use of an LNG carrier, defining how the vessel handles temperature-controlled cargo, boil-off gas (BOG), cooldown steps, and terminal requirements. Unlike oil-tanker contracts, LNG charterparties include specialized clauses for tank readiness, reliquefaction systems, cargo custody transfer, and strict loading windows. These details ensure safe and predictable LNG transportation.
2. Which charterparty forms are used for LNG tankers?
The main LNG charterparty forms are GASVOY, GASTIME, and LNG-adapted versions of SHELLTIME4, BPTIME, and ASBATIME. These forms include LNG-specific clauses covering BOG limits, cooling procedures, tank warranties, and terminal protocols. Because LNG vessels differ by containment system and equipment, many operators add riders that align the form with vessel capability and GSA delivery requirements.
3. What are boil-off gas (BOG) clauses in LNG charterparties?
A BOG clause sets acceptable vaporization rates and explains how BOG may be used for propulsion, reliquefaction, or return to the cargo system. These clauses matter because BOG directly affects cargo quantity, fuel economics, and tank pressure control. Clear BOG rules reduce disputes linked to excess vaporization, delivery shortfalls, and GSA-related penalties.
4. How is laytime calculated for LNG tankers?
Laytime for LNG vessels begins only when the ship meets LNG-specific readiness conditions such as cooldown, heel levels, and cargo-line temperature. Because terminals operate on fixed loading slots, any delay can lead to demurrage. Therefore, charterparties define how to measure waiting time, inspection periods, and cooldown-related steps to prevent disagreements during loading or discharge.
5. What operational risks affect LNG charterparty performance?
LNG charterparties must manage risks such as cargo contamination, tank damage, cooldown issues, BOG-system failures, and terminal incompatibility. Market risks—including volatile spot prices and tight delivery windows under GSAs—add further pressure. Clear risk allocation helps both parties minimize delays and protect voyage economics.
6. How do GSA terms influence LNG charterparty obligations?
A Gas Sales Agreement (GSA) sets delivery windows, quality requirements, and cargo-loss limits that directly shape the vessel’s operational obligations. When GSA terms link to a charterparty, the vessel must meet stricter scheduling and BOG-management standards. Aligning CPA and GSA provisions ensures realistic voyage planning and reduces the risk of penalties or delivery disputes.