From: erik.rosag@jus.uio.no
Data: 19
Sep 07
Subject:
Information on long term LNG contracts
Dear
Correspondents,
Julien RAYNAUT and I agreed that the following exchange may include
useful
information for the correspondence group, so it is
therefore circulated:
Erik Rosag's question:
Why do you emphasize the long term commitments in the LNG shipments in
this context? Are the long term commitments a greater
problem for
contributors not situated in a State Party than for
contributors situated
in a State Party? And how many contracts from before
1996, when the
Convention was adopted, are still running unamended?
The answer of Julien RAYNAUT on behalf of GIIGNL:
The long term commitments in the LNG business are a strong reality for a
significant number of operators. The issue here is to
consider such
reality in the work of finding solutions to the LNG
contributions : the
amendment of long term contracts is always something
that can have
commercial impacts for both parties. That's why the
LNG industry is
encouraging solutions explored outside the scope of
the contractual
arrangements (like the receiver security, necessarily
covered with
back-to-back clauses in the contracts). These elements
are just a reminder
of the actual context of the LNG market which is
largely constituted by
long term undertakings.
----
Regards
Erik Røsæg