LNG Available - South Korean Origin

Product: Liquified Natural Gas (LNG)

Origin: South Korea

Volume: 50,000 MT's Initial Lift | 300,000MT's Per Month | 3 Year + Contract

Destination Port: CIF ASWP

Loading Port: Varies Per Destination

Origin: Non-Sanctioned

Price: Minus (-) 40% (Forty Percent) from Henry Hub Natural Gas Futures

Prior Settled Quotes with a Premium of $7.00

Per Metric Million British Thermal Units (MBTU) | Prices subject to change without notice.

Commission: $2.50 Per MT | Buy Side

LNG PURCHASING PROCEDURES:

 

1. Initial Documentation:

- Buyer submits their CIS/KYC & CP or Website. Seller conducts DD.

2. ZOOM Video Call:

- Buyer and Seller have Q & A and discuss other various items, ie., Commercial Offer, POF, Instrument, Logistics, etc.

3. RWA Letter: Letter.

- Buyer countersigns the offer and attaches the Ready, Willing, and Able (RWA) Bank

4. Bank Verification:

• On receipt of the RWA, Seller's Bank initiates contact with Buyer's Bank.
  Subsequently, an Authorization to Verify (ATV) is issued by the Seller to Buyer's Bank, allowing verification of:

• The Seller's financial capacity to transact.
• The Seller's previous fuel trading experience.

5. Sales & Purchase Agreement (SPA):

- Seller forwards the Sale Purchase Agreement (SPA) to the Buyer, who is expected to finalize and return it within three business days. The SPA is then archived with both banks.

6.Bank Instruments & Assurance:

• Buyer's Bank Initiates Assurance: The process begins with the Buyer's Bank transmitting a Pre-Advice using SWIFT MT 799, followed by the Collateral Instrument via SWIFT MT 760.
• Seller's Reciprocation with Performance Guarantee: The Seller offers a 2% Performance Guarantee to cover the cost of the Buyer's SBLC, mitigating the Buyer's financial risk.

• Lloyds of London Insurance and Claim Conditions: Once the Buyer's financial instrument is validated, a non-performance insurance policy is procured from Lloyds of London, covering 110% of the purchase price. Specific conditions under which the Buyer can file a claim include:

• Non-delivery of the agreed quantity of LNG.
• Delivery delays beyond the agreed timeline without a valid reason.
• Delivery of LNG that does not meet the quality or specifications agreed upon in the contract.
• Any breach of contract terms that materially affects the Buyer.

Guidelines for Filing a Claim: In the event of any of these conditions being met, the Buyer can directly approach Lloyds of London with the necessary documentation and evidence of the breach to file a claim. The process will be governed by the terms outlined in the insurance policy, ensuring a fair and transparent mechanism for claim settlement.

- Risk Mitigation and Mutual Benefit: This step is designed for mutual benefit. It provides security for the Buyer through the Performance Guarantee and insurance policy, while also demonstrating the Seller's commitment to fulfilling the contract terms.

7.Product Loading & Documentation:

• Post validation, the Seller commences vessel loading and shares pertinent product & delivery documents, such as:

• Charter Party Agreement (CPA)
• Vessel Questionnaire 88 (Q88)
• Vessel Product Insurance Policy (via Lloyds)
• Commitment to Supply
• Commercial Invoice
• Product Availability Statement
• Certificate of Origin
• Bill of Lading
• Cargo Manifest
• Ullage Report
• Certificate of Quality (verified by SGS at origin) |
• Notice of Readiness
• Estimated Time of Arrival (ETA) to the destination.
• The Buyer retains the privilege to monitor or liaise with the vessel at any juncture.

8. Delivery & Inspection:

- Adhering to standard shipping practices, the shipper apprises the Buyer about the vessel's impending arrival, typically within 48 hours. The Seller then dispenses the Authorization to Board (ATB) and the Dip Test Authorization (DTA). Note: Local regulations may necessitate Customs officials to accompany the Buyer during this phase.

9. Final Settlement:

- Upon arrival at the Receiving Terminal, Discharge/Cargo Transfer and Final Gauging are conducted. Following the Quantity & Quality (Q&Q) Inspection, and in line with the Final Invoice, the Buyer is required to execute an MT103 Wire Transfer within 24 hours after the Discharge/Cargo Transfer and Final Gauging are completed.