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ARTICLE · 21 SEPTEMBER 2026

LNG Charterparty Hire Formula: Meaning Of JKM–TTF Pricing Spread

CMS Wistrand
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The Commercial Court ruled on a USD 29 million dispute over an LNG carrier charterparty's index-linked pricing formula, determining whether the "JKM-TTF spread" operated bidirectionally or only when JKM exceeded TTF. The decision examines how unprecedented market conditions—where European gas prices surged above Asian prices due to the Ukraine war—tested the contractual formula's application and whether rectification could remedy an alleged drafting oversight.

European UnionLitigation, Mediation & Arbitration
Phillip Ashley
Phillip Ashley
Peter Roberts
Peter Roberts
Sarah Grenfell
Sarah Grenfell
Valerie Allan
Valerie Allan
Asya Jamaludin
Asya Jamaludin

In Briety Shipping Inc v Trafigura Maritime Logistics PTE Ltd [2026] EWHC 1714 (Comm) the Commercial Court dismissed a USD 29m claim for unpaid hire under an index-linked time charterparty, holding that a pricing formula based on the “spread” between two LNG indices (JKM and TTF) operated in one direction only. Although the issue turns on the specific words of the contract, it is a significant decision for the LNG and commodities shipping markets with implications for drafting charterparties that are index-linked.

Facts

The claimant, Briety Shipping Inc (“Briety”), owns the LNG carrier “TENERGY,” which was chartered to the defendant, Trafigura Maritime Logistics Pte Ltd (“Trafigura”), under a five-year time charterparty dated 21 July 2020 (the “TCP”). The vessel was delivered on 12 January 2022.

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