BCG’s LNG worldwide model, also called i-LNG, is a real-time tool that tracks all LNG cargo, forecasts their position, identifies trading opportunities, and helps producers, buyers, and traders optimize their portfolio based on assets, contracts, and logistical restrictions.
The cost of transporting LNG around the world is high—but the LNG shipping market is neither efficient nor transparent. Players in the market have limited ability to track the location and movement of LNG vessels and, more important, to forecast those over the next 30 days. As a result, they struggle to identify trades in due time and optimize strategies that would lower shipping costs.
BCG’s i-LNG is a powerful tool that addresses that gap. It gives users historic and real-time information on all cargo around the world, including the position, capacity, volume, and controller (or owner) of the LNG. It also provides a forecast of the position of vessels as far out as 30 days. Those forecasts are based on advanced analytics that factor in a range of data, such as the speed and destination of vessels, the controller of each vessel, and previous movements of vessels following similar routes.
Based on that information, i-LNG uses an algorithm to identify possible trades that would lower logistics costs. For example, if vessel A is currently located in India and en route to Japan, and vessel B is in the Pacific Ocean (cruising from Peru) with a similar LNG load, the algorithm would suggest a swap between both positions.
The tool also provides valuable insights about trends in the LNG market. It offers real-time price references and operational data for each LNG facility and infrastructure component as well as, year-to-date and month-to-date supply and demand data for each market around the world. Companies can use that information to benchmark the efficiency of various operations and the LNG needs within specific destination markets, and to further optimize their trading and portfolio strategies.