LNG Heel Clause Samples
The LNG Heel clause defines the minimum quantity of liquefied natural gas (LNG) that must remain in a vessel's tanks after unloading to ensure the safe operation and cooling of the ship's systems. In practice, this clause specifies the exact volume or percentage of LNG that cannot be discharged, often based on technical requirements for maintaining tank temperature and pressure. By establishing this minimum retention, the clause ensures vessel safety and operational integrity, preventing damage to the ship's containment system and enabling efficient turnaround for subsequent cargoes.
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LNG Heel. (a) For the purposes of this agreement, the FSRU shall satisfy the “Tank Temperature Condition” when the average temperature of the bottom of each cargo tank into which LNG is to be loaded from an LNG Carrier is no warmer than -161° Celsius, and each tank’s average vapour temperature is no warmer than -130° Celsius.
(b) Company shall be responsible, in accordance with the Nomination Procedure and LNG Transfer Procedure, for managing the quantities of LNG retained in the FSRU’s cargo tanks after Acceptance in accordance with Good Industry Practice in order to ensure that the FSRU:
(i) will at all times satisfy the Tank Temperature Condition; and
(ii) is free of LNG on expiry of the Lease Period, and failure so to manage such quantities after Acceptance shall be a Company Risk Event, provided however there shall be no such failure if at any time after Acceptance the FSRU fails to satisfy the Tank Temperature Condition despite the Company having maintained the minimum quantity of LNG heel in the FSRU’s cargo tanks through its Nominations.
(c) Owner shall:
(i) provide Company with up to date and accurate information regarding the quantities of LNG retained in the FSRU’s cargo tanks (and Owner and Company shall procure that Representatives of each meet after the date of this agreement and seek to agree how the Company might be provided with such information) on a real time basis in the manner described in Clause 22.1(b) in accordance with Good Industry Practice; and
(ii) permit the Company’s employees on board the FSRU pursuant to Clause 9.4 to monitor such quantities of LNG.
LNG Heel. Except
(a) on the Vessel’s maiden voyage under this Agreement;
(b) following a Scheduled Drydocking or lay-up; or
(c) when otherwise instructed by Customer, Contractor undertakes that the Vessel shall always (A) when waiting to load LNG at Customer’s Facilities and (B) when arriving at an LNG loading port other than Customer’s Facilities, be in a ready-to-load condition with the average temperature of each cargo tank being either, for a membrane type Vessel, no warmer than minus one hundred and thirty degrees Celsius (-130ºC) or, for a ▇▇▇▇ type Vessel (measured at the equatorial ring of each tank) no warmer than minus one hundred and ten degrees Celsius (-110ºC) with the ability to maintain such temperature for a period of not less than twenty four (24) hours after the later of 00:00 hours on the scheduled loading date or of the time of tendering of notice of readiness for the loading of LNG. Contractor, the Master and Customer shall agree, from time to time based on current experience, the quantity of LNG to be retained on board following regasification of LNG or cargo discharge for the purpose of cooling and, where applicable, propulsion on a ballast passage. However, the Master shall at all times endeavour to keep to a minimum the quantity of LNG retained on board following such regasification of LNG or cargo discharge; provided, however, that the Master shall make such determination only after confirming the Vessel’s schedule for the receipt or delivery of LNG under any applicable LNG SPAs and any Designated Trades (as the same may vary from time to time). If either (X) on arrival of another vessel at Customer’s Facilities from which the Vessel is required to receive a transfer of LNG or (Y) on arrival of the Vessel at a loading terminal other than Customer’s Facilities from which the Vessel is required to load LNG, the Vessel is not in a ready-to-load condition, the extra time and LNG supplied to the Vessel for the purpose of cooling the Vessel’s cargo tanks shall be for Contractor’s account unless:
(i) the applicable LNG transfer or loading, as the case may be, is delayed on Customer’s orders;
(ii) where the Vessel is required to receive a transfer of LNG from another vessel at Customer’s Facilities, such other vessel did not arrive at Customer’s Facilities on schedule;
(iii) where the Vessel is required to load LNG at a terminal other than Customer’s Facility, the Vessel did not arrive on schedule (as such schedule may have been amended by Customer...
LNG Heel. Contractor and Customer shall agree, from time to time based on current experience, the quantity of LNG Heel to be retained on board following regasification of LNG for the purpose of cooling, which shall not be less than the Minimum Heel Inventory. LNG normally required for gassing up and cooling for loading LNG following lay-up of the Vessel shall be for Customer's account. In all cases, even where the cost of LNG for gassing up and cooling down is for Contractor's account, Customer will nonetheless procure the supply of all LNG required for gassing up and cooling down of the Vessel.
LNG Heel. The LNG Heel shall be notified by Seller to Buyer [⚫] days prior to the start of the Delivery Window.
LNG Heel. Contractor and Customer shall agree, from time to time based on current experience, the quantity of LNG Heel to be retained on board following regasification of LNG for the purpose of cooling, which shall not be less than the Minimum Heel Inventory. Except:
(a) for an Event of Force Majeure;
(b) following lay-up;
(c) when otherwise instructed by Customer, or
(d) for an event attributable to Customer or any Service Excusable Event, Contractor undertakes that the Vessel shall always when waiting to load LNG at the FSRU Site be in a ready-to-load condition with the average temperature of each cargo tank (excluding top dome) being no warmer than -130ºC with the ability to maintain such temperature for a period of not less than twenty four (24) hours after the later of 00:01 hours on the scheduled loading date or of the time of tendering of Notice of Readiness for the loading of LNG. LNG normally required for gassing up and cooling for loading LNG following lay-up shall be for Customer's account. In all cases, even where the cost of LNG for gassing up and cooling down is for Contractor's account, Customer will nonetheless procure the supply of all LNG required for gassing up and cooling down.