International natural gas and LNG agreements in the light of the energy transition

Current contractual formulations do not provide an adequate solution in the context of the energy transition. This article examines the relationship between private energy contracts and the transition towards a net-zero world. It will focuses on long-term take-or-pay natural gas and liquefied natural gas sale and purchase agreements that are commonly used in the natural gas sector. These agreements often contain highly restrictive clauses that are designed to ensure stability of supply and demand, which makes them suitable for acquiring the project financing necessary for large capital-intensive energy projects. At the same time, these agreements create an important lock-in effect […]

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