LNG Liftable Quantity and FOB CIF Pricing for Aktau Rotterdam Supply
- Jose Pagan
- 2 days ago
- 8 min read
Large LNG trades rarely fail because the price was unclear. They fail because the volume, delivery term, inspection right, vessel readiness, and payment path were not written in a way both sides can perform.
This summary organizes the supplied commercial terms for liquefied natural gas, including liftable quantity, FOB and CIF pricing, Port Aktau and Rotterdam references, and the tank-to-vessel FOB procedure. It is written as a clear transaction guide, not as legal, financial, or shipping advice. Every buyer, seller, broker, and logistics party should verify procedures, documents, sanctions, port rules, and banking requirements before execution.
At a glance, the offer is structured around monthly LNG lifting between 100,000 metric tons and 400,000 metric tons, with pricing stated on both CIF and FOB bases. The operational route includes ICPO submission, commercial invoice execution, PPOP release, buyer bank comfort, dip test authorization, vessel readiness, injection, final proof of product, and payment by MT103/TT.
The LNG liftable quantity defines the transaction scale
The supplied liftable quantity is stated as a monthly volume, which matters because LNG trades require coordination between production availability, storage, berth windows, vessel nomination, inspection, and banking timelines.
Commercial item | Stated term |
Product | Liquefied Natural Gas, LNG |
Minimum monthly quantity | 100,000 metric tons per month |
Maximum monthly quantity | 400,000 metric tons per month |
Commission | $5 buy-side, confirm the unit in writing |
CIF price | Gross $470.00, net $460.00 |
FOB price | Gross $440.00, net $430.00 |
FOB port reference | Port Aktau / Rotterdam |
Contract duration | One-year delivery contract after successful execution |
A buyer seeking the minimum volume must be ready for a cargo program of meaningful size. A buyer seeking the maximum volume must prove that it has the shipping, storage, receiving, and banking capacity to perform every month.
The phrase LNG Liftable Quantity and FOB CIF Pricing for Aktau Rotterdam Supply should be read as a package of commercial and operational terms. It is not only a price quote. It also describes the quantity band, port references, lifting method, and sequence of documents.
The monthly quantity also affects the buyer’s vessel planning. LNG cargoes are carried on specialized LNG carriers, not ordinary tankers. The parties should confirm:
Vessel type and compatibility with the loading terminal
Availability of an acceptable charter party agreement
Port clearance and berth acceptance
LNG handling and custody transfer procedures
Inspection access and safety rules
Whether lifting is by single cargo, multiple cargoes, or scheduled monthly shipments
Any gap in those points can delay lifting even when the buyer and seller agree on price.
FOB and CIF pricing should be read with delivery responsibility in mind
The offer includes two price structures.
Delivery basis | Gross price | Net price | Main meaning |
CIF | $470.00 | $460.00 | Seller-side pricing includes cost, insurance, and freight to the named destination, subject to agreed terms |
FOB | $440.00 | $430.00 | Buyer becomes responsible for vessel and onward shipment after loading, subject to agreed terms |
Under a typical FOB structure, the buyer arranges the vessel and handles shipping from the port once the product passes the agreed loading point. Under a typical CIF structure, the seller arranges carriage and insurance to the named destination.
The difference between gross and net pricing usually relates to commission, intermediary compensation, or transaction margin. The brief states a $5 buy-side commission, but the unit should be confirmed. In commodity contracts, commission is often stated per metric ton, but no party should assume that without written confirmation.
A clean contract should state:
Whether prices are per metric ton
Exact currency and payment method
Gross price and net price treatment
Commission beneficiary and payment timing
Whether commission is paid from seller side, buyer side, or transactional spread
Delivery basis and exact named port
Any port charges, demurrage, storage, inspection, or transfer costs
The stated locations, Port Aktau and Rotterdam, should also be clarified. Aktau is commonly associated with Caspian Sea logistics, while Rotterdam is a major European energy and commodity hub. The contract should identify whether each port is a loading point, destination point, transit point, or alternative discharge point.
The FOB tank-to-vessel procedure follows a document-first sequence
The supplied FOB procedure is a staged workflow. It starts with buyer intent and ends with payment, intermediary settlement, and a one-year contract. The order is important because each document unlocks the next step.
The buyer submits the ICPO
The buyer issues an `ICPO`, or Irrevocable Corporate Purchase Order.
The ICPO should match the offer terms. It should show the product, monthly quantity, price basis, delivery basis, destination or lifting port, buyer details, payment method, and any requested schedule.
A seller will normally reject or delay an ICPO if the buyer changes core terms or leaves out shipping capacity.
The seller issues the commercial invoice
After receiving and processing the ICPO, the seller’s refinery or authorized supply source releases a commercial invoice within 48 hours, based on the supplied procedure.
The commercial invoice should state the exact payable amount, product description, quantity, price, seller bank details, buyer details, validity period, and delivery term.
The buyer signs and returns the commercial invoice with CPA
The buyer signs and returns the commercial invoice with a verifiable `CPA`, or charter party agreement.
This step is especially important in FOB trades because the buyer must show that a vessel is available or under arrangement. The seller needs confidence that the buyer can receive injection once the terminal approves the movement.
The CPA should be checked for:
Vessel name and IMO number, if available
Loading port and laycan
Charterer and owner details
LNG suitability
Port compatibility
Authority of signatories
The seller issues the TTVIA for endorsement
The seller issues the `TTVIA`, which the supplied procedure says must be endorsed by the buyer’s logistics company and the seller.
The acronym should be written out in the final contract so there is no dispute over meaning. In the context of this procedure, it relates to tank-to-vessel injection authorization or agreement.
Both sides should confirm what endorsement means in practical terms. It may include signatures, stamps, verification by the terminal, or acceptance by logistics representatives.
PPOP documents support initial product verification
After endorsement of the TTVIA, the seller’s refinery issues the preliminary proof of product documents, often called `PPOP`.
The stated PPOP package includes:
PPOP document | Purpose |
Product quality passport | Shows product specifications and quality profile |
Certificate of origin | Identifies the declared origin of the LNG |
Commitment to supply | Confirms seller’s intention and ability to supply |
Statement of product availability | Supports the claim that the product is available |
These documents are not the same as final title transfer. They help the buyer review the product and move toward inspection, banking verification, and loading.
A serious buyer should verify each document directly through acceptable channels. That can include checking issuing entities, product specs, terminal references, company registration, and consistency across names, dates, quantities, and ports.
If any document contains spelling changes, mismatched entities, unclear seals, or unverifiable references, the parties should pause until the issue is resolved.
Banking comfort and verification come before inspection access
The procedure then requires the buyer to provide `MT199` or `BCL` to the seller, along with authorization to verify, often called `ATV`.
An `MT199` is a bank-to-bank SWIFT message used for free-format communication. A `BCL`, or bank comfort letter, is a banking document that may indicate the buyer has financial capacity, subject to the issuing bank’s wording.
The seller then verifies the buyer’s banking support. Once verification is complete, the seller issues authorization to conduct dip test.
This sequence protects the seller from opening terminal access to a buyer that cannot perform. It also protects the buyer by giving a formal route to inspection instead of relying only on documents.
The authorization to verify should be specific. It should name the bank, account holder, transaction reference, allowed recipient, and scope of verification. Banks have strict compliance rules, so vague wording can slow the process.
The dip test and SGS inspection confirm the product before payment
After receiving dip test authorization, the buyer or the buyer’s representatives attend the inspection with a buyer-hired SGS team. The supplied terms state that the buyer bears the cost of the dip test.
In LNG, inspection is more technical than in ordinary liquid fuel trades because the product is cryogenic and requires specialized handling. The parties should make sure the inspection method is acceptable for LNG, safe under terminal rules, and recognized by both sides.
The inspection plan should define:
Who can attend
Which inspection company performs the work
What samples, readings, or certificates are acceptable
How quantity and quality are measured
Who signs the inspection report
What happens if results differ from the stated specification
The buyer should also confirm that SGS or any nominated inspector has access approval for the terminal and the technical capacity to inspect LNG under the agreed procedure.
NOR, Q88, and injection move the transaction into loading
After a successful dip test, the seller’s refinery issues `NOR`, or notice of readiness, to the buyer. The seller then requests `Q88` from the buyer’s shipping company to proceed with injection.
The Q88 is commonly used as a vessel questionnaire in tanker and energy shipping. For an LNG movement, the buyer should ensure the vessel information package matches the carrier type and terminal requirements.
At this stage, the transaction becomes operational. The seller needs the vessel data. The buyer needs terminal acceptance. The logistics parties need an agreed loading window. Any delay can create storage costs, berth conflicts, or demurrage exposure.
The injection step should be timed carefully. The contract should state when risk transfers, when title transfers, and what document proves successful injection.
Final POP documents follow successful injection
After successful injection, the seller issues the final proof of product documents listed in the procedure.
Final POP document | Why it matters |
Allocation license | Supports the allocation of product to the buyer or transaction |
Title ownership transfer affidavit | Confirms title transfer according to the agreed transaction terms |
Tax registration certificate | Supports seller-side registration or tax standing, subject to verification |
The buyer should not treat final POP as a casual formality. These documents support the last step before payment and should match the commercial invoice, vessel details, quantity, product, and transaction reference.
A mismatch at this stage can create a serious dispute. Clean document control matters. Names, dates, ports, volume, and banking instructions must line up across the full file.
Payment and one-year contract execution close the lift
The supplied payment term states that the buyer makes 100% payment via MT103/TT to the seller within 72 working hours after the required stage is completed. Once 100% payment is received, the seller pays all intermediaries.
Payment by `MT103/TT` should be made only to verified seller banking coordinates. Bank details should be confirmed through secure channels, not only through email attachments or forwarded documents.
The final step is the signing of a one-year delivery contract between seller and buyer. That contract should repeat and refine the main terms from the trial or initial lift.
A well-drafted one-year LNG supply contract should cover:
Monthly quantity range
Delivery schedule
Loading and discharge ports
FOB or CIF obligations
Product specifications
Inspection rules
Payment timeline
Banking instruments
Commission structure
Force majeure
Demurrage and delay costs
Sanctions and compliance
Governing law and dispute resolution
The initial lift is not only a cargo movement. It is also a test of whether both sides can perform under pressure. If the documents, vessel, inspection, and payment all move cleanly, the annual contract has a stronger foundation.
Practical checks before accepting these LNG terms
Before any party executes the described procedure, the full transaction file should be reviewed for consistency.
Key checks include:
Confirm that the seller has authority to sell the LNG
Confirm that the port named in the contract can perform the stated loading
Confirm that the buyer’s vessel can load LNG at the terminal
Confirm whether the price is per metric ton and whether the commission is per metric ton
Confirm the difference between gross and net pricing
Confirm who pays inspection, storage, port charges, and demurrage
Confirm the exact moment when title and risk transfer
Confirm bank-to-bank verification before relying on payment instructions
Confirm that all documents can be independently verified
Confirm sanctions, customs, and shipping compliance for every route
Clear terms reduce risk, but they do not replace due diligence. LNG cargoes involve high-value product, strict safety rules, specialized shipping, and complex banking. Every line of the transaction procedure should be capable of being performed in the real world.
The core commercial offer is straightforward: 100,000 to 400,000 metric tons per month, CIF gross $470.00 and net $460.00, FOB gross $440.00 and net $430.00, with Port Aktau and Rotterdam referenced and a tank-to-vessel FOB process. The real work is making sure every document, inspection, vessel, and payment step supports that offer without contradiction.
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