A Court of Appeal decision in December 2020 has provided further guidance on the interpretation of long-term gas supply agreements, particularly in relation to take or pay clauses. It also offers a salutary reminder of the...more
In our July 2017 update in AG Speaking Energy, we highlighted that the Japan Fair Trade Commission (JFTC) concluded in its market study that destination clauses, diversion clauses, profit-sharing clauses and take-or-pay...more
• JFTC‘s recent market study on clauses in LNG SPAs indicate that agreements may run afoul of Japanese antimonopoly laws. • EU cases may provide guidance on application of competition law to destination clauses, diversion...more
1. INTRODUCTION - Historically, the Japanese gas and electricity markets could best be described as a collection of regional monopolies, each with its own energy champion (the “Japanese Incumbents”). In more recent...more
Managing Decommissioning Risks in Asian M&A Transactions - By the end of 2026, approximately 134 producing Concessions and Production Sharing Contracts (each, a “PSC”) will have expired in South Asia. It is expected that 900...more
The Japan Fair Trade Commission (the “JFTC”) recently undertook a survey to review destination restriction clauses in contracts for the sale and purchase of liquefied natural gas (“LNG”). Included at the end of the JFTC’s...more
On June 28, 2017, the Japan Fair Trade Commission ("JFTC") published a report based on a survey conducted from July 2016 to May 2017 ("Report"), concluding that destination restrictions provided in liquefied natural gas...more
In June 2017, the Japan Fair Trade Commission (JFTC) issued its conclusion on an earlier market study on liquefied natural gas (LNG) resale restrictions and cautioned that (i) destination clauses, (ii) diversion clauses,...more
Traditionally, long-term take-or-pay "ToP" LNG sale and purchase agreements ("LNG SPAs") provide the foundation for the development of an LNG export project. These are contracts with terms of 20 years or longer. A buyer under...more
The Rise of Domestic Gas Obligations - The increase of domestic gas ("domgas") obligations imposed by Host States in pipeline gas or LNG export projects has become a trend in the international gas industry. ...more