Working paper
Scenarios for Asian long-term LNG contracts before and after COVID-19
- Abstract:
- The paper discusses scenarios for Asian long-term LNG contracts (LNG SPAs), taking into account the COVID-19 crisis, which, as this paper argues, will have a significant impact on the evolution of contractual arrangements in the industry. Recent market events have delivered multiple incentives for price reviews and exposed three key needs for changes to Asian LNG SPAs: (1) to abandon oil-linked pricing, (2) to increase operational flexibility, and (3) to re-examine contract adjustment mechanisms. Highlighting that the anticipated European-style wave of price review arbitrations is unlikely to materialize in Asia in the near term, the paper concludes that a transition driven by comprehensive contract reviews executed by the parties would be an optimal scenario for Asian LNG SPAs in the 2020s.
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(Preview, Version of record, 1.9MB, Terms of use)
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- Publisher copy:
- 10.26889/9781784671617
Authors
- Publisher:
- Oxford Institute for Energy Studies
- Series:
- OIES Paper
- Place of publication:
- Oxford
- Publication date:
- 2020-07-29
- DOI:
- Paper number:
- NG 160
- ISBN:
- 9781784671617
- Language:
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English
- Keywords:
- Deposit date:
-
2020-07-31
Terms of use
- Copyright holder:
- Oxford Institute for Energy Studies
- Copyright date:
- 2020
- Rights statement:
- Copyright © 2020 Oxford Institute for Energy Studies (Registered Charity, No. 286084). This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the Oxford Institute for Energy Studies.
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