BIMCO, the shipping industry’s main trade association, has introduced a standard contract for the carriage of LCO2 to support projects requiring the transportation of captured CO2 from industrial capture sites and remote storage locations.
The new time charter party, CO2TIME 2026, provides a structured basis for agreements in a segment where shipping is increasingly important in connecting industrial emitters with storage infrastructure, especially in regions where pipelines are not available.
While CO2 transport has commonalities with established gas shipping trades, it introduces specific technical and regulatory considerations, such as cargo handling requirements and compliance complications that differ from other liquefied gases.
Stinne Taiger Ivø, BIMCO’s deputy secretary general and director of contractual affairs, said: ‘CO2 transport is a developing trade with a unique risk profile but at the same time, it is closely connected to already established gas shipping practices. CO2TIME 2026 has been designed to bridge this gap by providing a familiar time charter structure while addressing the specific technical, operational and regulatory challenges associated with CO2 carriage.’
The contract is based on existing gas tanker chartering principles but contains additional clauses that allocate responsibilities and costs according to which party is in control of a given operational decision.
BIMCO said this approach is intended to provide clarity for shipowners, charterers and other stakeholders involved in CO2 shipping projects, while maintaining a structure that is consistent with established industry practice. To date, contractual arrangements in maritime CO2 transportation have been largely developed on a case-by-case basis.
Nicholas Fell, chair of BIMCO’s Documentary Committee, commented: ‘By retaining well-established time charter principles and adapting them to the specific characteristics of CO2 transport, CO2TIME 2026 aims to reduce contractual uncertainty and support owners, charterers, financiers and project developers entering this market.’
BIMCO notes that, although CO2TIME 2026 is designed with LCO2 in mind, the form has been drafted with flexibility to allow its use for other liquefied gases, including LPG. As such, the publication of CO2TIME 2026 provides a reference point for negotiations in a developing segment and may be used alongside existing contractual frameworks in the gas shipping market.
