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Cheniere Energy, Inc. Message Board

  • riverfront418 riverfront418 Jul 6, 2012 11:57 AM Flag

    Costs to collect and ship?

    Can anybody give some perspective on packing and shipping costs? I can then add to the cost of nat gas here to see if it make economic sence to ship to oversees prices. Looking forward 3 years/ no positon yet. Thx in advance

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    • 1 cubic m of LNG is 410 Kg.So it is about 41% comparing to water in volume and weight.A biggest oil tanker may hold up to 500,000 metric tons(3.5 million barrels,valued $300 million)if the same tanker used to transport LNG then It can carry about 200,000 metric tons of LNG(valued $200 million).The Qmax is biggest LNG tanker with capacity of 260,000 cubic m or 100,000 metric tons(value $100 million)

    • Riverfront – The shipping numbers shown in the Cheniere presentation ($1.25/mmbtu to Europe and $3.00 to Asia) are reasonable estimates for long term. The actual cost to ship the LNG will depend on numerous factors, including charter rates (or new build ship costs), ship utilization rates, fuel oil costs and the value of boil-off. In today’s Platts, they quote the cost of shipping from Trinidad to Japan/Korea at $5.43/mmbtu, although no one expects that to be the long term average rate of shipping from the USGC to Asia.

      I would like to clarify one point implied in your question. The cost of shipping the LNG is not really a cost or issue for Cheniere. They sell 90+% of the LNG at the dock to the contracted offtakers. If Cheniere has any exposure to shipping costs, it is minor and limited to the 10% of unsold capacity. Cheniere’s revenue from the 90% already contracted is fixed and not subject to the price of gas in Asia, Europe or the US.

    • It pumped into a tanker as a liquid. The tanker
      runs on LNG. Costs less then $2 a MBTU which is
      the price of gas. Need to sell at $10 plus

 
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