Regardless of whether certain countries have (or have not) passed the “peak” of the coronavirus disease 2019 (COVID-19) outbreak, other LNG market forces remain; possible second or third waves of the virus cannot be ruled out and the impact of the April 2020 OPEC+ deal remains to be seen. Even without the virus, parties to LNG contracts need to maintain a solid grasp of the contractual tools at their disposal.
In new bulletin, attorneys Max Rockall, Ben Holland and Tim Flamank explore various contractual management tools that may be available in a highly changeable LNG market, and some common issues associated with them. These tools may provide leverage to parties seeking to recast (or preserve) the contractual bargains contained in their SPA portfolios. This bulletin discusses generalities. The availability of any contract management tool in a specific situation will depend on various factors, such as contract terms, the applicable law of the contract and the surrounding facts.