FOB LNG Price

Free on Board (FOB) is a trade term for a shipping arrangement between buyer and seller such that the buyer bears all costs and risks once the goods are loaded onto the ship at the loading port. The seller fulfills his obligations once goods passes over the ship's rail at the port of shipment. In the case of LNG, once it passes the flange at the loading arm of the liquefaction facility, buyer owns it. This gives the buyer more flexibility and control over cargoes.

Therefore, the FOB LNG price will be a price that excludes shipping costs since buyer supplies transportation at its own risk and cost.