The Guide to Energy Arbitrations – Fifth Edition, Global Arbitration Review
Partners Stephen Anway, George von Mehren, Michelle Bock, Max Rockall contributed to Global Arbitration Review’s Guide to Energy Arbitrations, authoring Chapter 8 “The Evolution of Natural Gas Price Review Arbitrations.” This guide provides coherent and comprehensive coverage of the most common, difficult, and unusual issues faced by energy firms, from some of the world’s leading authorities.
The Evolution of Natural Gas Price Review Arbitrations
Price review arbitrations are, as a collection of cases, the highest-value commercial disputes in the world today. The amounts at stake begin in the hundreds of millions of dollars and often climb into the billions. Yet despite the staggering amounts that hang in the balance, price review arbitration has only recently emerged from relative obscurity to become a subject of debate in the wider energy arbitration arena.
The authors of this chapter have been involved in price review arbitrations since their inception. As set out in this chapter, the story of natural gas price reviews has been, until recently, largely a European one. By looking back at the role of international arbitration in the development of gas pricing during the past 20 years in Europe, the authors identify developing trends and make predictions for the future. These are particularly important for Asia, where the gas markets today largely resemble those in Europe two decades ago: markets in transition, where disputes are now progressing, for the first time, to international arbitration. This chapter seeks to map the evolution by providing an overview of the past, the present, and the future of price review arbitration.