Negotiating and drafting long term LNG sales contracts which address and allocate the risks of the “well-head to burner-tip” chain in a commercially balanced manner is a challenge in today’s evolving LNG market. The last decade has seen unprecedented growth in the international LNG trade, the opening of a variety of new import markets, the development of a number of new commercial
models in the LNG trade and substantial changes to the terms upon which LNG has until recently traditionally been sold. The next decade (particularly in Asia) is likely to see even more spectacular developments, in the development of new models for the trading and sale of LNG, in the physical infrastructure needed to deliver LNG and in the sources of feed gas. The impact of the “shale gas revolution” is having a significant effect on LNG marketing in Asia. How will today’s contracts
fare in a world with enhanced levels of shale gas production in Asia? There are now a greater variety of buyers looking to acquire LNG, and a greater variety of LNG sellers in the market than we have ever seen before. How does one contract on a long term basis in a way that will withstand the pressures a
long term contract is likely to face? In the shorter term the market has seen the price of oil drop
dramatically in the last twelve months. How can oil prices be linked to LNG prices? What are the risks of agreeing LNG pricing linked to oil or US domestic prices, what are the relative merits of these pricing methodologies? Buyers and Sellers looking to enter into sales and purchase contracts need to understand the context in which the terms of these contracts have been developed and where the likely areas of stress will be for the contract in the future. In this workshop you will learn about the key issues facing LNG buyers and sellers today and explore different approaches to dealing with these issues.