01/10/2024

The future of energy: insights on LNG discussed in newly updated publication

Malcolm Jarvis has written a chapter in the latest edition of Liquefied Natural Gas: The Law and Business of LNG, published by Globe Law and Business.

Now in its fourth edition, this book examines LNG’s place in the energy transition, the geopolitics of LNG, structuring of LNG projects, shipping, trading, price formation and reviews.

Describing the context for the updated text of his chapter, Malcolm said:

“The LNG trading market has evolved in recent years into one of the fastest-growing commodity markets, prompted in part by increased demand for LNG in Europe and Asia following Russia’s invasion of Ukraine. In recent years, greater volumes of LNG have been traded through spot sales or short-term contracts. However, there is presently little standardisation and the terms of such agreements tend to be influenced by long-term LNG sale and purchase agreements.”

In his chapter, ‘Failures and reliefs’, Malcolm considers:

• liability for failures to deliver or take LNG under long-term and master sale and purchase agreements; and
• reliefs from such liability under contractual terms (e.g. force majeure or wilful default) or by operation of law (e.g. the law on penalties).

Other themes explored include termination rights under express termination clauses and the general law.