Market volatility has accelerated pricing changes in the liquefied natural gas (LNG) industry, causing the start of a gradual shift from a long-term model to one of spot trading. The industry is known for its resilience—and creative project structuring along with innovation and new technologies promise to help it evolve and prosper under pressure from competing energy sources and some Environmental, Social and Corporate Governance (ESG) advocates.
- Advised GAIL (India) Limited, India’s largest natural gas company, in negotiating and implementing a terminal services agreement relating to Dominion’s Cove Point LNG export project and related regulatory, pipeline and gas supply matters. We performed extensive analysis of U.S. Department of Energy (DOE) non-Free Trade Agreement authorization matters.
- Represented Tellurian Inc. in structuring its proposed Driftwood LNG export project in southwestern Louisiana on the U.S. Gulf Coast and in multiple feed gas supply arrangements.
- Assisted SK E&S Company, Ltd., a large Korean company, in its liquefaction tolling agreement relating to Train 3 of Freeport LNG’s Texas-based liquefaction project, including related regulatory, FERC and DOE analysis, gas, transportation and power supply arrangements.
- Represented Anadarko Singapore Pte. Ltd. (now Total E&P Singapore) as the operator and lead developer of the Mozambique LNG Project in relation to a sale and purchase agreement with JERA Co., Inc. in Japan and CPC Corporation in Taiwan to supply 1.6 million tons per annum of LNG for an initial term of 17 years. Our representation also included the development of a master LNG sales agreement for short-medium term and spot trading of LNG cargoes.
- Representing J-Power (Electric Power Development Co., Ltd) in its A$496 million project—the first of its kind in the world—in producing hydrogen from Australia’s vast brown coal reserves in the Latrobe Valley in the province of Victoria.
We advise on all major issues impacting the LNG market, including:
- LNG import (including gas-to-power) and export projects
- Netback pricing
- Spot, short-medium term and long-term trading
- Regasification, including floating storage regasification units (FSRU)
- Equity cost and liquidity transactions
- Balance sheet and equity financed LNG
- LNG price review/price reopeners and antitrust issues
- Carbon capture, storage, management and accounting, including verification of emissions
- Green LNG
- Integration with the hydrogen industry.
We also negotiate and document transactions involving global gas and LNG index pricing, as well as proxy index and hybrid pricing.
Our global, multidisciplinary team also helps our clients analyze price reopening and other provisions in LNG sale and purchase agreements (SPAs) and other LNG contracts, examining potential disputes or claims and strategies to renegotiate and possibly terminate existing offtake and other arrangements.
Our experience encompasses matters pertaining to dozens of LNG projects globally, including—
- Djibouti LNG
- Mozambique LNG
- New Age FLNG
- Badak LNG
- Bontang LNG
- Petronas FLNG 1
- PNG LNG
- Gladstone LNG
- Icthys LNG
- Wheatstone LNG
- Canaport LNG
- Discovery LNG
- Kitimat LNG
- Altamira LNG
- GNL Quintero
- Manzanillo LNG
- Pacific Coast LNG
- Cameron LNG
- Cheniere’s Corpus Christi Liquefaction Project (CCL)
- Cove Point LNG
- Crown Landing LNG
- Driftwood LNG
- Freeport LNG
- Gulf LNG
- Lake Charles LNG
- Sabine Pass LNG
- Venture Global Calcasieu Pass LNG
- Venture Global Plaquemines LNG