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Subject: Re: HNS-LNG Correspondence Group: Background information |
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From: Julien RAYNAUT |
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Date: Tue, 2 Oct 2007 |
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To: Erik Rosag |
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Erik,
You will find hereattached
my responses to your questions :
1 -What level are the
payments annually for the LNG industry in respect of
liabilities of the nature covered by the HNS Convention? What percentage
of the budget would typically be set aside for liabilities?
The problem here is that we
are considering figures that never happened in the preceeding years as for 40
years the LNG maritime transport is considered as safe and never suffered up to
now of any kind of major accident that could lead to the figures covered by the
HNS regime.
Therefore it's very
difficult to answer to such question for the LNG industry.
However, the GIIGNL HNS
working group has established in february 2006 some datas figures offering
different kind of perspectives in case of application of the HNS Convention
after accident (in term of corresponding amount incurred by LNG contributors).
The results of such studies have been developped in the HNS General Report
transmitted to the Correspondence Groupe.
We can take an example : we
have to consider an application post LNG incident, taking into account the fact
that the LNG account in applicable and that the liability of the first tiers is
covered (no exception). Considering a scope in the HNS Regime of 21 millions
tons of LNG imported in the preceeding year (around the minimum required for
entry into force of the LNG account), the unit cost incurred by LNG contributor
should be 7.1 M SDR / Mt which mean 0.21 USD/MMBtu (Unit used in LNG business =
Million of British Terminal Units - this template can be actualised as the rate
figure is 1.55 SDR per USD).
2 -What level are the payments annually for the LNG industry in respect of
insurance of liabilities of the nature covered by the HNS Convention? What
percentage of the budget would be set aside for insurance premiums?
Considering insurance costs
for the 2nd tiers, we don't have any figure available up to now. In reference
to the different kind of results applicable (see the different scenario as
developped in the HNS General Report - mainly depending on the LNG countries
entering into the HNS system) we can imagine that the insurance market will
work on the basis of annual templates, with regard to the scope of LNG
importers potentially contributors.
Maybe the work will be
easier for the 1st tiers and for LNG shipowners but again, we will not have any
real economical elements before the first steps of the Convention.
This point can be discussed
and developped with the shipping insurance representatives : the next IOPC
Funds forum could be a good occasion.
3 -What would be typical maximum insurance cover for an LNG terminal today?
We have to consider here
that such kind of insurance is generally taken under classical industrial
insurance and not typical shipping insurance. We don't have precise figures
because for each LNG terminal you will find different kind of ad-hoc insurance
coverage - but the amounts have to be sufficient to cover the LNG terminal
operator's civil liability for damages occured to LNG ships or third parties.
If you want to explore more
in detail such elements, we will be happy to discuss this with you during the
October meeting in London.
Best regards,
Julien
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Erik Rosag <erik.rosag@jus.uio.no> 27/09/07 10:38 AM |
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Thanks!
Erik
On 27.09.2007 09:50, Julien RAYNAUT wrote:
>
> Dear Erik,
>
> I have to come back to the GIIGNL members before responding to your
> questions. I'm doing my best to give you detailed elements before the
> october meetings.
> We can also organise a conference call if there is a need to discuss
> more in detail some elements.
>
> Best regards,
>
> Julien
>
>
>
>
> *erik.rosag@jus.uio.no*
> Sent by: nifs-hnslng-owner@jus.uio.no
>
> 25/09/07 09:20 AM
>
>
> To
>
"Julien RAYNAUT" <Julien.RAYNAUT@gaselys.com>
> cc
>
francois.cahagne@gazdefrance.com, nifs-hnslng@jus.uio.no
> Subject
> HNS-LNG
Correspondence Group: Background information
>
>
>
>
>
>
>
>
> Dear Julien,
>
> You will recall that one of the many very pertinent observation in the
> Correspondence group was that the group had discussed the LNG
contribution
> issues solely form a legalistic point of view. I would now like to
pick up
> on this, and ask you for some information on the factual situation for
the
> LNG industry. Therefore, I would be very grateful indeed if you could
give
> me some ideas – or even figures – on the following:
>
> -What level are the payments annually for the LNG industry in respect of
> liabilities of the nature covered by the HNS Convention? What
percentage
> of the budget would typically be set aside for liabilities?
>
> -What level are the payments annually for the LNG industry in respect
of
> insurance of liabilities of the nature covered by the HNS Convention?
What
> percentage of the budget would be set aside for insurance premiums?
>
> -What would be typical maximum insurance cover for an LNG terminal
today?
>
> I am sure that the level of these figures are not totally unknown to
the
> LNG industry, at least if they are significant. An indication of these
> figures would certainly help very much to keep the discussions in
London
> in a realistic perspective.
>
> Kind regards,
> Erik
>
>
>
>
>
>
>
>
>
>
>
>