The LNG market is often cited as a template for hydrogen
Hydrogen contracts to differ from LNG
Take-or-pay contracts and destination clauses will be hard to implement in hydrogen market
Hydrogen is likely to develop contracting structures that differ from the way LNG is traded today, according to industry experts. The LNG market is often cited as a template for the development of a global hydrogen trade. One of the hallmarks of long-term LNG contracting is a longstanding reliance on take-or-pay clauses, which have traditionally underpinned the development of multibillion-dollar export projects around the world. These contracts give sellers some guaranteed returns even if buyers do not follow through on purchasing agreed amounts of a commodity and were vital in de-risking projects in the early days of the LNG market. But while such contracts remain common in the LNG sector,
Also in this section
31 March 2025
Saudi Aramco’s blue hydrogen progress is a clear reminder that energy companies pivoting in search of greater returns may not be throwing the H₂ baby out with the bathwater
27 March 2025
Awards celebrate global innovation, leadership and achievement across the energy sector’s people, projects, technologies and companies.
27 March 2025
Region has all the ingredients to become a green hydrogen powerhouse but faces plenty of barriers and stiff competition
21 March 2025
European Hydrogen Bank auction is four times oversubscribed, while industry remains on pause in US amid IRA subsidy uncertainty
