BIMCO has started work on developing a new time charter party specifically designed for the maritime transportation of carbon dioxide (CO2). This ‘industry first’ will be particularly relevant for the emerging carbon capture and storage (CCS) market, which is part of global efforts to combat climate change.
Christian Hoppe, General Counsel highlights that the target date for adoption of the charter party – CO2TIME – is late 2025/early 2026, in time for the first commercial projects expected to be launched in 2028-2030.
As informed, a specialist drafting team with representatives of owners, charterers, brokers and P&I Clubs as well as technical and legal experts, who are all currently engaged in the CCS supply chain or have plans to become involved in the coming years, has been meeting regularly since April and continued its work on the new form at an online meeting on 27 and 28 August. The team expects to have a draft ready for wider industry consultation early next year.
Shipping has a key role to play in CCS and we want to develop a standard form that addresses the unique characteristics of the transport of CO2 whilst fairly allocating the rights and responsibilities of the parties.
…says Marcus Dodds of Capital Gas who leads the drafting team.
The form will address technical aspects as well as commercial, insurance and any relevant regulatory considerations associated with CO2 transport.
In addition to Capital Gas, the expert team developing the new form includes representatives from Navigator Gas (John Reay), Ineos (Jocelyn Harriman), Orlen Trading (Marceli Marczyński), Babcock (Martin Halcrow), Clarksons (Tommy Baggio and Elwin Taylor), Wikborg Rein (Andreas Fjærvoll-Larsen), Skuld P&I Club (Krester K. Kjær and Peter Hazell) and UK P&I Club (Mark Rudd).
CO2 project contracts are expected to be established on a long-term basis and the drafting team is therefore keen to develop a standard which is sufficiently broad to enable commercial flexibility for the parties.
Our aim is to develop a form which also caters for the transport of other gases such as liquefied petroleum gases and petrochemical gases, given that the ship’s specifications will typically permit such transport.
…adds Dodds.
