Categories/Energy/LNG/Concept

LNG Chain Economics: FOB, DES, and Shipping

Delivered LNG value combines feedgas, liquefaction, shipping, boil-off, and regas costs, so route length and vessel efficiency are first-order variables.

Core Points

FOB and DES structures distribute freight risk differently.
Vessel availability drives optionality between basins.
Delivered economics depend on speed, boil-off, and discharge queue risk.

Case Studies

Case: Atlantic-to-Pacific Diversion

A Pacific premium attracted Atlantic cargoes, repricing freight and tightening prompt supply for European importers.

Case: Canal Delay Vessel Squeeze

Transit disruption increased voyage times, reducing effective fleet supply and raising delivered LNG costs.

References

Wikipedia: Liquefied natural gas
Wikipedia: LNG carrier

Last reviewed: 2026-03-21