Course 04 of 20 · LNG Desk Academy

Cargo Economics & Delivered Costs

Stage A, Market and cargo fundamentals. Level 2 of 10.

Building a delivered cost stack for a single cargo and reading a netback against a destination price.

115 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 02, Course 03

Enrol or enquire See the 115 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 115 chapters

Open any module for its full chapter list, in teaching order.

M0 The Cargo as the Unit of Commerce Ch 1-11
  1. What One Cargo Actually Is
  2. Reading the Facts That Pin a Parcel Down
  3. Why Liquefied Gas Arrives in Indivisible Lots
  4. The Two Points a Parcel Is Valued At
  5. The Cost Stack in Outline
  6. Every Line Carries a Date and a Source
  7. Whose Costs Are They Anyway
  8. The Supplier's Number and the Importer's Number
  9. Illustrative Numbers and Honest Precision
  10. A Costing Other People Will Interrogate
  11. What This Capability Leads To
M1 The Energy Basis Every Line Sits On Ch 12-21
  1. Why Delivered Energy Is the Only Honest Denominator
  2. The Mass and Energy Mix-Up That Breaks a Build
  3. Normalising a Charge Quoted Per Tonne
  4. Normalising a Lumpsum and a Daily Rate
  5. Which Energy Figure the Charges Divide By
  6. Heating Value as the Hinge of the Arithmetic
  7. Gross and Net Heating Value in a Cost Line
  8. Currency and Unit Conventions Across the Sheet
  9. A One-Page Basis Convention Sheet
  10. Where Basis Errors Surface
M2 The Purchase Leg at the Load Port Ch 22-29
  1. Where the Molecules Come From
  2. Two Ways to Hold the Purchase Leg
  3. A Free-on-Board Purchase as a Single Line
  4. Feedgas Taken from a Hub Quotation
  5. Why Feedgas Energy Exceeds Cargo Energy
  6. The Liquefaction Fee as a Line Item
  7. Loaded Quantity and the Tolerance Around It
  8. The Purchase Leg Closed: A Worked Figure
M3 Port, Berth and Transit Charges Ch 30-39
  1. The Fixed Items a Berth Visit Generates
  2. Pilotage, Towage and Mooring at a Gas Jetty
  3. Harbour Dues and Agency Fees at Both Ends
  4. Surveyors, Sampling and the Cost of Being Measured
  5. Canal Transit Tolls for a Gas Carrier
  6. Costing a Routing You Have Been Given
  7. Straits, Escorts and Area Payments
  8. Demurrage and Waiting Time as a Priced Allowance
  9. Cooldown, Gassing-Up and Vessel Readiness
  10. Port and Transit Charges Totalled
M4 Freight and Boil-Off Ch 40-51
  1. Freight Arrives as a Number, Not a Subject
  2. Reading a Voyage Charter Quote into the Sheet
  3. Reading a Time Charter Rate into the Sheet
  4. Ballast Legs and the Days You Pay For
  5. Bunkers and Fuel Burn Inside a Freight Figure
  6. Voyage Days as the Spine of the Build
  7. What Boil-Off Actually Removes
  8. Boil-Off Rate Applied Across a Voyage
  9. Evaporated Gas Burned Against Evaporated Gas Returned
  10. The Heel Left on Board and the Energy It Costs
  11. Delivered Energy After Losses on the Water
  12. The Voyage Leg Closed: A Worked Figure
M5 The Discharge End Ch 52-61
  1. What Happens After the Hose Connects
  2. Unloading and Berth Charges at an Import Terminal
  3. The Regasification Fee as a Line Item
  4. Terminal Losses and Gas Retained Ashore
  5. Send-Out Charges and Entry to the Grid
  6. Conditioning the Gas to Grid Specification
  7. Storage Ashore and the Days Before Send-Out
  8. Import Duties, Levies and Statutory Charges
  9. Choosing the Destination Quotation to Sell Into
  10. The Discharge Leg Closed: A Worked Figure
M6 The Lines Most Often Left Out Ch 62-70
  1. Cargo Insurance and the Value It Is Written On
  2. A Listed Area and the Premium It Adds
  3. Protection and Indemnity Cover Inside the Sheet
  4. The Cost of Money Named and Handed On
  5. Credit Support a Single Cargo Consumes
  6. Brokerage, Agency and Documentary Fees
  7. Emissions and Environmental Charges on a Voyage
  8. A Contingency Line and How to Size It
  9. Auditing a Build for What Is Missing
M7 Assembling the Stack Ch 71-80
  1. Fixing the Scope Before Any Number Goes In
  2. The Line Item Template
  3. Ordering the Lines So the Sheet Reads
  4. Staleness Rules for Each Kind of Input
  5. Quotation, Contract, Tariff or Estimate
  6. Rolling the Sheet to a Single Delivered Figure
  7. Checking a Total Against a Rough Expectation
  8. Two Sheets for One Cargo That Disagree
  9. Presenting the Sheet on One Page
  10. A Delivered Cost Built Line by Line: Worked
M8 The Netback Ch 81-92
  1. The Netback as the Sheet Run Backwards
  2. Starting from a Destination Quotation
  3. Stripping the Shore Costs Off the Price
  4. Stripping the Voyage Off the Price
  5. Arriving at a Free-on-Board Value
  6. Walking the Netback Back to the Plant Gate
  7. Which Energy Quantity a Netback Divides By
  8. Two Directions, One Arithmetic
  9. A Negative Netback and What It Tells You
  10. Netback Against a Term Formula Rather Than a Spot Price
  11. The Seller's Netback and the Buyer's Affordability
  12. A Netback Worked End to End
M9 Two Destinations and the Breakeven Ch 93-103
  1. The Ground Two Markets Are Compared On
  2. Two Netbacks Side by Side
  3. Attributing the Gap Line by Line
  4. When Distance Does Not Decide
  5. The Breakeven Freight Rate Defined
  6. Solving the Breakeven Step by Step
  7. Reading a Breakeven Against a Quoted Rate
  8. The Breakeven Destination Price
  9. Three Destinations and a Ranking Table
  10. Where the Number Stops and the Decision Begins
  11. Two Destinations Compared: Worked
M10 Sensitivity, a Worked Cargo and the Limits Ch 104-115
  1. Which Input Moves the Delivered Figure Most
  2. Sensitivity to Heating Value
  3. Sensitivity to the Boil-Off Rate
  4. Sensitivity to Voyage Days
  5. Sensitivity to the Purchase Leg
  6. Reporting Sensitivity on One Chart
  7. Tolerances Instead of Point Estimates
  8. A Cargo Costed End to End, Part One: The Facts
  9. A Cargo Costed End to End, Part Two: The Lines
  10. A Cargo Costed End to End, Part Three: The Netback
  11. What a Cost Sheet Cannot Tell You
  12. What the Next Courses Assume You Can Build

The brochure gives each of these 115 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 4 of twenty

It stands alone, and it is also the entry point to the LNG Desk Academy pathway.

Enrol or enquire See the whole pathway