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.

We understand the key legal and commercial issues that are driving changes in risk allocation towards more flexible supply terms in LNG contracts. Leveraging our decades of experience in the U.S. shale business, international gas-to-power sector and throughout the energy value chain, including oil, gas and LNG trading, we help clients succeed in this evolving market.

With extensive experience advising buyers and sellers on LNG marketing arrangements across global supply and demand basins, we advise on cutting-edge issues at the intersection of LNG, finance and emerging developments—from new project structures to carbon offsetting, carbon capture and storage and hydrogen. We are as forward thinking as our clients, closely following rapid technology improvements and finding new ways to finance projects globally.

Drawing on the resources of a full-service law firm, we offer complementary services around energy regulatory, trade controls and compliance, shipping and offshore services and transportation. In particular, in the context of LNG marketing arrangements, we regularly work with our industry leading trade and sanctions lawyers to identify and help mitigate sanctions and other trade control risks, including by conducting screening on parties to transactions as well as ports, and drafting contractual terms to address potential exposures under trade laws. We also enlist our highly ranked financial restructuring lawyers, who have been involved in the energy business throughout their careers and are skilled in finding smart and creative solutions in the face of pricing challenges in the LNG market, for clients seeking to purchase troubled projects as well as projects seeking to refinance.

Representative Matters

  • Represented New Fortress Energy Inc. (NASDAQ: NFE), a global energy infrastructure company, in the sale of 11 LNG infrastructure vessels to a new joint venture formed with Apollo Global Management Inc. in a deal valued at $2 billion.
  • 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.
  • Counsel GAIL Global Singapore on all aspects of their LNG marketing business, including development and negotiations of master sale and purchase agreements, review of trade financing terms and shipping arrangements.
  • Represented Energy Capital Vietnam in its Memorandum of Understanding with Korea Gas Corporation that provides the framework for the development of a privately funded LNG regasification terminal, storage, gas supply system and 3,200 MW gas-fired power project.
  • Represented Pueblo Viejo Dominicana Corporation (PVDC), a joint venture between Barrick Gold Corporation and Newmont Corporation, owner of one of the world’s largest gold mines, in a 10-year regasified LNG supply agreement with AES Andres DR, S.A. in the Dominican Republic. The agreement enabled PVDC to convert its Quisqueya I power generation facility to also run on natural gas.
  • Negotiated a suite of LNG Master Sale and Purchase Agreements for spot and short term strip deals for GAIL Global Singapore Pte Ltd, the LNG marketing division of India’s largest natural gas company.
  • Advised a financial institution in structuring the first carbon-neutral LNG transaction in the U.S.
  • Represented a large independent E&P company in its investment and marketing arrangement with a start-up company that seeks to develop domestic and international compressed gas liquids tolling and regasification facilities to export natural gas and natural gas liquids from the U.S.

Services In-Depth

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
  • Regulatory and permitting
  • 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. We have also advised on antitrust rules applicable globally to joint marketing arrangements and how such rules can impact the enforceability of destination or resale restrictions under long-term LNG SPAs, as well as regulatory issues associated with exports of LNG from the United States (U.S.), EU member states, and the Middle East.

Our experience encompasses matters pertaining to dozens of LNG projects globally, including—

Africa

  • Mozambique LNG
  • New Age FLNG

Asia

  • Petronas FLNG 1
  • PNG LNG
  • Singapore LNG (SLNG)

Australia

  • Gladstone LNG
  • Wheatstone LNG

Canada

  • Discovery LNG
  • Kitimat LNG

Latin America

  • Atlantic LNG
  • GNL Quintero

United States

  • Cameron LNG
  • Cheniere’s Corpus Christi Liquefaction Project (CCL)
  • Cove Point LNG
  • Driftwood LNG
  • Eagle LNG Partners
  • Freeport LNG
  • Gulf LNG
  • Lake Charles LNG
  • Sabine Pass LNG
  • Rio Grande LNG
  • Venture Global Calcasieu Pass LNG

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