EVOLUTION OF PRICE REVIEW CLAUSE IN ASIAN LNG SALE AND PURCHASE AGREEMENTS

Document Type : ISI

Authors

1 Ph.D. Student in Oil and Gas Law at Faculty of Law, Shahid Beheshti University

2 Associate Professor, Islamic law department, Shahid Beheshti University

3 Ph.D. in International Law, University of Nottingham, Nottingham, UK

Abstract

LNG sale and purchase agreements in Asia are changing under influence of structural changes in the Asian LNG market, including a gradual move towards market liberalization, the establishment of gas trading hubs and the emergence of new players. It is expected that the price review clause as one of the key terms of these agreements will also be affected by these changes. Accordingly, the direction of evolution of this clause in Asian LNG sale and purchase agreements can be questionable. This study intends to look at the history of the price review clause in Asian LNG sale and purchase agreements, the sample of these clauses and its structure and conditions as well as differences of this clause in Asian and European agreements to examine the path of evolution of this clause in Asian agreements and in light of changes in the Asian LNG market. With the increase in price review requests and the number of disputes related to LNG pricing in Asia, we can expect that the price review clauses in these agreements will be more accurate, contain more details and at the same time be more flexible and specific.

Keywords

References

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Journal Of Researches Energy Law Studies
Volume 6, Issue 2
Autumn & Winter
October 2020
Pages 339-356

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