Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246560 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
OIES Paper: NG No. 160
Publisher: 
The Oxford Institute for Energy Studies, Oxford
Abstract: 
The paper discusses scenarios for Asian long-term LNG contracts (LNG SPAs), taking into account the COVID-19 crisis, which, as this paper argues, will have a significant impact on the evolution of contractual arrangements in the industry. Recent market events have delivered multiple incentives for price reviews and exposed three key needs for changes to Asian LNG SPAs: (1) to abandon oil-linked pricing, (2) to increase operational flexibility, and (3) to re-examine contract adjustment mechanisms. Highlighting that the anticipated European-style wave of price review arbitrations is unlikely to materialize in Asia in the near term, the paper concludes that a transition driven by comprehensive contract reviews executed by the parties would be an optimal scenario for Asian LNG SPAs in the 2020s.
Subjects: 
arbitration
force majeure
gas price reviews
LNG
LNG contracts
LNG disputes
NG 160
Sale and purchase agreements
Persistent Identifier of the first edition: 
ISBN: 
978-1-78467-161-7
Document Type: 
Working Paper

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