Liquefied Natural Gas

Natural Gas supply

Liquefied natural gas LNG trading belongs to the international specific material supply industry. We have good interaction with Indonesia, Malaysia... Manufacturers can supply LNG, and we also can get LNG from Singapore,Dubai Agent Supplier ,Information  as follows

 
CIF/FOB buyer must provide the following information
Buyer Company Questionnaire Reference LNG Specification Reference Buyer entrusted with Purchase LNG Agreement
 

Currently, the LNG trade in the world mainly adopts FOB (Free On Board), DES (Delivered Ex-Ship) and CIF (Cost, Insurance and Freight), three trading methods as follows:

I. FOB trading methods:
The LNG seller sells the LNG to the buyer at the port of shipment according to the LNG price and the shipping cost; the LNG shipment is the responsibility of the buyer, and the LNG ownership and risk are transferred from the seller to the buyer at the receiving terminal.

II. DES Tradeing Mode:
According to the LNG price, shipping cost, transportation cost, and insurance cost during the transportation,the LNG seller sells the LNG to the buyer at the buyer's port of delivery ; the seller is responsible for LNG transportation, and the LNG ownership and risk are transferred from the seller to the buyer at the receiving terminal.

III. CIF Trading Methods:
If adopt CIF that generally use in international trade, the buyer bears the same cost as the DES method, but the buyer begins to assume the LNG risk from the port of departure,and can not control the transport, so generally will not adopted in the LNG trade. the way. The seller is responsible for the shipment of the goods to the port of destination and the delivery of the goods to the buyer at the port of destination.
 
What are the differences between LNG DES and CIF trading methods?

DES and CIF have the same price combination, freight and insurance costs are included in the price of goods, but buyers and sellers in the delivery of goods, expenses and risk liability are clearly different, main aspects as follow 
 
●The CIF is a symbolic delivery, the buyer should pay the bills when shipping ; the DES is the actual delivery, and the seller must place the goods under actual control of the buyer before the buyer pays the bill.
 
● The division of responsibilities for expenses and risks is different. The CIF is on the port ; and DES  transfer  responsibility after actual delivery at the port of destination.
 
● Insurance is differant. In CIF The insurance is obligation of seller that should be performed in the contract or the usual practice ; IN DES, seller buy insurance for himself and does not constitute an obligation.
 
● The CIF contract is a shipping contract that only specifies the time of shipment; the DES contract is a delivery contract and must specify the arrival time.

Pricing Indicators and Options
Linked price index selection(JKM、JCC、Brent、HH ,FOB Singapore SLInG)。

Asian pricing is mostly based on Platts JKM:
https://www.platts.cn/commodity/natural-gas/natural-gas-lng

LNG situation in China, for reference
https://ipkk.com/zh-mo/read/211166.html

https://tw.mobi.yahoo.com/money/

In China , LNG terminal is not enough - natural gas supply and demand tension is difficult to alleviate in short-term
http://yeslng.com/p/23820
 
Special Note

A single purchase (test order) can only be used JKM price, long-term order is 5 to 10 years will have a preferential price (or 1 to 5 years or a TT contract negotiation method).
CIF or FOB buyers are required to have receiving terminal  contracts (FOB needs to provide them) so as not to affect the LNG market.