Floating LNG terminals are a relatively new concept with the first such terminal in the world installed this year. The hydrodynamic interaction effects between the terminal and a LNG carrier in a side-by-side offloading arrangement is investigated. The side-byside arrangement is compared with each body floating alone to identify the interaction effects. The hydrodynamic coefficients are obtained using the Constant Panel Method and the analysis of body motions, mooring line tensions are done in time domain. The relative motion between the two bodies is analyzed using WAMIT in frequency domain and WINPOST in time domain to ascertain the offloading operability of the terminal under 1 year storm condition.