Course 15 of 20 · LNG Desk Academy

Destination Choice & Cargo Diversions

Stage D, Assets, shipping and cargo redirection. Level 8 of 10.

The diversion decision itself: comparing a contracted delivery against an alternative destination net of replacement obligation, shipping, terminal rights, hedge adjustment and funding.

117 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 10, Course 11, Course 12, Course 14

Enrol or enquire See the 117 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 · 117 chapters

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

M0 The Diversion Question Ch 1-10
  1. What a Diversion Decision Actually Asks
  2. Why Destination Choice Decides an LNG Portfolio
  3. The Difference a Laden Vessel Makes
  4. The Four Consents a Redirection Needs
  5. Diversion, Resale Afloat and Reload Separated
  6. Why This Is Not an Arbitrage Screen
  7. The Clock Sitting Behind Every Redirection
  8. Permitted, Possible and Profitable
  9. The Components of a Diversion Build
  10. What You Will Be Able to Decide by the End
M1 Contractual Permission Ch 11-20
  1. Reading the Destination Clause as a Permission Test
  2. Free Destination, Fixed Destination and Consent Required
  3. Asking for Consent and What It Costs
  4. Restrictions That Outlive the Transfer of Title
  5. When the Buyer Already Holds the Choice
  6. Routing Discretion a Delivered Seller Keeps
  7. Screening an Alternative Port Before You Turn
  8. Project Restrictions Passed Down the Chain
  9. Permission You Hold Against Permission You Must Buy
  10. A Permission Test Run on One Cargo
M2 The Replacement Obligation Ch 21-30
  1. What the Original Buyer Is Owed
  2. Make-Whole, Substitution and Deferral Compared
  3. Pricing a Replacement Cargo From the Spot Market
  4. Replacing Energy Rather Than Volume
  5. Moving the Delivery Instead of Replacing It
  6. Damages When No Replacement Can Be Found
  7. The Buyer Who Would Rather Have the Money
  8. Who Carries the Replacement Price Until It Is Bought
  9. Replacing From Your Own Book
  10. The Replacement Leg Priced Into the Build
M3 The Netback Comparison Ch 31-42
  1. Putting Two Destinations on One Basis
  2. The Contracted Delivery as the Baseline
  3. Choosing the Price for the Alternative Port
  4. An Assessed Level Against a Firm Bid
  5. Specification Acceptance at the Second Terminal
  6. The Freight Difference Between Two Legs
  7. Reception and Regasification Charges at Each End
  8. Subtracting the Obligation You Leave Behind
  9. Funded Days as a Term in the Comparison
  10. Hedge Adjustment Entered as a Cost
  11. The Diversion Margin on One Page
  12. Two Destinations Compared End to End
M4 The Shipping Consequence Ch 43-53
  1. Extra Days at Sea as the First Charge
  2. Boil-off Over the Additional Passage
  3. Heel, Fuel and What You Arrive With
  4. Repositioning After an Unplanned Discharge
  5. Who Pays for the Deviation Under the Charter
  6. Speeding Up or Accepting a Later Arrival
  7. Route Constraints on the New Leg
  8. Will the Ship Fit the Alternative Berth
  9. The Next Voyage You Forfeit
  10. Bunkers, Crew and Cover on a Changed Route
  11. The Shipping Cost of One Redirection
M5 The Terminal Right Ch 54-64
  1. Can You Even Unload There
  2. Securing a Slot at the Alternative Terminal
  3. Buying Secondary Capacity Under Time Pressure
  4. Joining the Queue at a Congested Port
  5. Send-out, Tank Room and the Downstream Home
  6. Rich Cargo at a Lean Terminal
  7. Giving Up the Slot You Already Hold
  8. A Berth Window That Does Not Match Your Arrival
  9. Discharging Without a Terminal Slot
  10. The Terminal That Refuses You After You Turn
  11. Reception Rights Priced Into the Decision
M6 The Hedge Adjustment Ch 65-74
  1. Why a Redirection Breaks a Sound Hedge
  2. The Exposure the Alternative Destination Creates
  3. Unwinding, Rolling or Overlaying the Cover
  4. Adjusting a Position in a Thin Forward Market
  5. Dates That No Longer Line Up
  6. Covering the Replacement as Well as the Diversion
  7. What the Realignment Leaves Behind
  8. Margin Consequences of Realigning the Book
  9. Deciding With the Adjustment Cost Included
  10. Realigning the Book for One Redirection
M7 Funding and the Cash Clock Ch 75-84
  1. A Longer Voyage Means a Later Invoice
  2. Counting the Funded Days a Redirection Adds
  3. Paying Out Before You Are Paid
  4. Credit Headroom at an Unfamiliar Buyer
  5. Payment Security Arranged at Short Notice
  6. Collateral the Realignment Calls For
  7. Currency and Settlement at the New Destination
  8. Funding Cost Per Unit of Diverted Cargo
  9. When Liquidity Decides Instead of Margin
  10. The Cash Consequence Worked Through
M8 The Decision Window Ch 85-94
  1. The Clock the Voyage Sets
  2. Finding the Last Point of Diversion
  3. Notice Periods That Close the Option Early
  4. Consent Lead Times You Cannot Compress
  5. Nomination Deadlines as Hard Gates
  6. Deciding Before the Information Arrives
  7. Sequencing What You Secure First
  8. Holding the Option Open and What It Costs
  9. A Window Shutting on a Live Cargo
  10. Choosing to Stay the Course
M9 Relationship, Structure and Shared Gain Ch 95-105
  1. What It Costs to Disappoint a Term Buyer
  2. Doing It Repeatedly and Being Known For It
  3. Negotiating a Redirection the Buyer Agrees To
  4. Redirecting a Cargo From a Tolling Position
  5. Choosing Which Cargo in the Fleet Moves
  6. Portfolio Supply Without a Named Sale
  7. Clauses That Split the Upside
  8. Fees, Caps and Floors on a Diversion Right
  9. Administering a Shared-Gain Settlement
  10. Who Inside the Firm Approves a Redirection
  11. Leaving a Record That Survives Audit
M10 The Decision Taken Ch 106-117
  1. Setting Up the Capstone Cargo
  2. Permission and Consent Resolved
  3. Building Both Netbacks
  4. Pricing the Voyage That Follows
  5. Confirming Reception at the New Port
  6. Settling With the Original Buyer
  7. Hedge and Funding Realigned
  8. Defending the Recommendation Line by Line
  9. A Second Cargo That Should Not Move
  10. What Would Reverse Each Answer
  11. How a Diversion Case Flatters Itself
  12. What This Arithmetic Cannot Tell You

The brochure gives each of these 117 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 15 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