The LNG SPA and the energy transition

The long-term nature of gas and LNG contracts poses legal challenges which may be conventional or, depending on the shape of the low-carbon future, unexpected

A pivotal role for natural gas and LNG as an enduring participant in a low-carbon future had previously seemed assured—regardless of uncertainties concerning the extent or pace of moves towards that future. However, questions are now being raised in relation to the markets and applications which will be appropriate for natural gas and LNG over the coming decades. Over the last decade, natural gas has grown through displacement of coal and oil consumption in the large consumer markets of China and India, penetrated further into the energy mix of emerging market jurisdictions such as Pakistan and the Philippines, and adapted its traditional structures, relationships and contractual arrangement