Steven Finizio, Michael HoweFrom: International Arbitration in the Energy Sector
Edited By: Maxi Scherer
This chapter first describes the main transactions that occur in relation to the supply of natural gas after its exploration. In particular, it studies contracts relating to: the production of gas (including drilling contracts), the processing of gas, the transportation of gas (including in pipelines and as liquefied natural gas (LNG) by ship), the storage of gas, the sale of gas from producers to wholesalers, and the sale of gas from wholesalers to end users. The chapter then discusses disputes that typically arise in relation to those transactions, including transportation infrastructure disputes and storage disputes. It pays particular attention to disputes relating to long-term gas sale and purchase agreements (GSPAs), an important number of which have led to high-profile arbitration proceedings in recent years. The chapter, therefore, analyzes in detail the clauses typically contained in those agreements, and the issues that typically arise in arbitration — in particular, gas price reviews.