News & Analysis as of

Take-or-Pay Contracts

Kramer Levin Naftalis & Frankel LLP

Contractual Tensions in the Context of Post-COVID Economic Recovery: Legal Tools and Guidelines

After a year and a half of a global pandemic, INSEE (French National Institute of Statistics and Economic Studies) announced on Sept. 7 a forecast growth of 6.25% of French GDP, thanks in particular to household consumption. ...more

Vinson & Elkins LLP

Pyrrhic Victory In Take Or Pay Dispute Under Long-term Gas Supply Agreements: A Breach Of Contract, But No Damages

Vinson & Elkins LLP on

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

A&O Shearman

Take-or-pay In Commodity Supply Contracts – Looking Beyond COVID-19

A&O Shearman on

In the previous two notes in this series we assessed first whether COVID-19 constitutes a force majeure event (FM) and secondly the impact of COVID-19 on existing commercial contracts. This third note focuses on a fundamental...more

Akin Gump Strauss Hauer & Feld LLP

Take or Pay: Does the Law of Penalties Apply?

Q2 2020 saw a tangible increase in the number of queries from clients asking about the enforceability of take or pay clauses common in supply agreements. Intermingled with questions around force majeure, the key issue appears...more

Akin Gump Strauss Hauer & Feld LLP

Revisiting LNG Resale Restrictions – Implications of Recent EU Decisions

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

Akin Gump Strauss Hauer & Feld LLP

European Commission Takes Aim at Qatar’s LNG Contracts

• 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

King & Spalding

Japan: De-Regulation, The Japan Fair Trade Commission and Take or Pay Disputes

King & Spalding on

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

King & Spalding

Energy Newsletter - September 2017

King & Spalding on

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

King & Spalding

The Shift Away from Take-or-Pay Contracts in LNG

King & Spalding on

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

Jones Day

Japanese Report: LNG Sale and Purchase Agreement Destination Restrictions Likely Anticompetitive

Jones Day on

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

Akin Gump Strauss Hauer & Feld LLP

The Japan Fair Trade Commission Has Said No to LNG Resale Restrictions—What Does This Mean for Japanese and Non-Japanese LNG...

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

King & Spalding

Re-examining the Take-or-Pay Obligation in LNG Sale and Purchase Agreements

King & Spalding on

Since almost the inception of the LNG industry, the “take-or-pay” contract structure has become perhaps the defining characteristic of long-term LNG sale and purchase agreements (SPAs). The benefits of the traditional...more

King & Spalding

How Latin American LNG Markets and U.S. Exports are Reshaping the LNG Market

King & Spalding on

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

King & Spalding

Drafting Lessons From The "Deliver-Or-Pay Wars" Of The Southern Cone

King & Spalding on

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

King & Spalding

TRANSACTIONAL: Project Development/Finance: Key Considerations in Energy Take-or-Pay Contracts

King & Spalding on

Perhaps the most common type of off-take contract in a large scale energy project is the take-or-pay contract. A properly constructed take-or-pay contract provides the seller with an assured revenue stream that ensures an...more

King & Spalding

Energy Newsletter - April 2013

King & Spalding on

In This Issue: - TRANSACTIONAL: - Project Development/FinanceKey Considerations in Energy Take-or-Pay Contracts - Upstream - Russia and former republics Unconventional Russia - Bankruptcy:...more

16 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide