Liquefied natural gas (LNG) is often seen as a portfolio commodity in which a participant can split several long-term sales contracts into short-term transactions in order to optimize transportation costs and reconcile supply obligations with market conditions. The LNG industry also has its own spot market, in which cargoes are purchased and sold through competitive tenders and negotiated transactions. Alternatively, swap agreements (for which two buyers or two sellers accept the exchange of cargoes) are another business model that is becoming more common in the LNG industry. Short-term sales contracts – bilateral agreements of one to five years, often with low flexibility of conditions 1 This article focuses on LNG sales and purchase agreements that are governed by English or New York law. 2 See z.B. Clause 12 of the 2011 GIIGNL Master Ex-Ship LNG sales contract, Article 13 of the AIPN Master LNG-Verkaufs- und -Kaufvertrages 2012 and Clause 15 of the standard BP MSA (DES) 2019 Edition form. 3 See z.B. Clause 12, paragraph 2, point b), of the 2011 LNG sales contract, Section 188.8.131.52 a) of the 2012 AIPN Master LNG contract and paragraph 15.1 (a) of the MSA (DES) 2019 type form. 4 See z.B. paragraph 184.108.40.206 (a) of the standard contract AIPN Master LNG-Kauf- und -Kaufvertrages von 2012. 5 Vgl. B z. clause 220.127.116.11 (b) of the standard contract AIPN Master LNG-Kauf- und – Kaufvertrages von 2012.
6 See, for example. B, paragraphs 12.3 and 12(4) of the 2011 LNG sales contract of GIIGNL Master Ex-Ship, item 13.2 of the AIPN- Contract-Master-LL 2012 and clauses 15.6 and 15.7 of the MSA (DES) 2019 Edition. The availability of force majeure exemptions depends on the specific text of the agreement and the legislation in force in this agreement.1 It is permissible, however, to make some general observations on issues raised by the application of force majeure concepts, often included in LNG sales and sales contracts. Long-term sales contracts – usually for a 20-year term – the long-term LNG sales contract remains the traditional guarantee for financing the LNG capital-intensive value chain. The majority of global LNG volumes are sold under long-term contracts This practice note takes into account the nature and extent of arbitration agreements with a particular focus on arbitration agreements under the legislation of England and Wales, although it has also discussed the concept from an international perspective and contains some comparative examples of other LIQUEfied Natural Gas (LNG) boom in the United States , Australia and Qatar have used a new era of short-term supply contracts for the natural gas industry.