Gas Purchase Agreements

Master the key contractual terms to get the best deal

Attend this two-day interactive development programme to:

  • Identify the legal issues involved at each stage of the agreement to develop a robust deal
  • Understand the commercial mechanics and principles behind the negotiation process to strengthen your contractual position
  • Master the critical components of the agreements to define the practical operational terms between buyers, sellers, agents, aggregators, transporters and shippers
  • Analyse legal obligations, risks and liabilities to manage and mitigate your risks for your maximum advantage
  • Cover the interdependencies of the competitive pressures in the global fuel market as applied to future performance of gas contracts

​Learn from carefully constructed and realistic exercises to develop the optimum contract negotiation strategy

What is the programme about?

The successful exploration of new gas reservoirs has significantly increased the international market dynamic. However with the demand for gas varying across the world global purchasing and gas sourcing is a vital element to secure the reliable and affordable flow of gas. Drafting and negotiating the gas purchase agreements is key to closing the best deal at the best terms and conditions.

This intensive two-day training programme is a must-attend course that equips participants with the necessary knowledge of the legal issues of robust gas purchase agreements. Engaging in this interactive and hands-on focused course will enable you to put better deals together and improve your commercial performance.

 

 

  • General Managers
  • Gas Commercial-Regulatory Specialist
  • Contract Monitoring and Performance Managers
  • In-House Counsel
  • Legal Advisors
  • Business Development Managers
  • Commercial Managers
  • Investment Analysts
  • Strategy and Planning Managers
  • Gas Sales Coordinators

 

DAY ONE

Global Gas Markets of the global regional and local markets

  • Understanding global gas markets, supply & prices
  • Natural gas as a commodity
  • Unconventional gas development

 

Economic Fundamentals of Natural Gas

  • Drivers of gas growth
  • Demand and supply dynamics
  • Natural gas consumption
  • Supply and demand imbalances

 

Global Natural Gas Market Structure

  • Gas market groupings
  • Evolution of the global gas market
  • Supply and production
  • Natural gas demand and the energy mix

 

Gas Demand Drivers and New Markets for Gas

  • Meeting gas demand growth
  • Natural gas supply – side drivers
  • Unconventional gas resources

 

Development of Pipelines

  • New pipelines
  • Russia-China pipeline and its frameworks
  • Issue of pricing goals
  • Security of gas supply

 

Global Gas Market Evolution and Liquefied Natural Gas

  • International gas trades
  • LNG spot market trade
  • Competition-based market structure
  • Market liberalisation
  • Hub developments in Asia and Europe
  • Long-term gas sales & purchase contracts

 

DAY TWO

 

The Gas Sales Agreement

  • Characteristics of long-term off take agreements
  • Types of gas sales and purchase agreements
  • Key contractual terms

 

Analysis Of Issues On Key Contractual Terms

  • Take‐or‐pay clauses & conditions in GSPA
  • Take‐or‐pay clauses & conditions practice
  • Economic rationales behind take‐or‐pay clause
  • Risk allocation mechanisms

 

Take‐Or‐Pay: How It Operates In Practice

  • Take-or-pay percentage
  • Periodicity
  • Make-up quantities

 

Contract recitals

  • Natural gas quantity clauses
  • Goal of quantity clause
  • Annual contract quantity
  • Seller’s delivery obligations
  • The phrased approach
  • Daily contract quantity
  • Forecasting average gas consumption

 

Default and Consequences for Seller’s Failure to Deliver

  • Liquidated damages and guaranteed delivery
  • Cap on liquidated damages
  • Calculating liquidated damages

 

The Buyer’s Obligation to Purchase Gas

  • Economic Nature of Minimum Quantities
  • Annual take or pay quantity – for buyer
  • Buyer’s off take vs payment for shortfall gas 

 

How Do We Deal With Deductions From Take‐Or‐Pay Quantity

  • Deducted quantities calculations
  • Formulaic approach (seller’s and buyer’s)
  • Resolving impasse over formula

 

Dealing with “Make Up Gas”

  • How does it work
  • How does it operate
  • Buyer’s rights
  • Carry forward gas

 

Price And Price Review in Natural Gas Sale & Purchase Agreements

  • Gas price
  • Gas price formulae
  • Price review
  • Structural market changes –as trigger for price review

 

Gas Price & Price Review

  • The determining criteria
  • Drafting Considerations
  • Gas price in a changing market
  • Typical price review clauses
  • Price review options
  • Re-negotiations

 

LNG Price & Price Review

  • Delivery point & title transfer risk
  • LNG risk and delivery

 

Force Majeure

  • Clauses and implications 
  • Dispute resolution & jurisdictions
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Testimonials for our Courses

“My experience with Clarion Training was pleasant and the facilities were accommodating. It was most useful and interesting to understand the key content of contracts and which areas to pay particular attention to.”
 

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This course is only available as a custom course tailored for your business, contact us to discuss your requirements.