Abstrak

Kembali

At their core, natural gas and LNG price review claims focus on evaluating whether or not the applicable contract sales price aligns with the various benchmarks specified in the underlying contract. While price review clauses are drafted in different ways, the common premise is a simple one. Its application, however, is mired in nuance and potential pitfalls. In this article, we consider the commercial bargain underlying price review rights with an eye to understanding the context within which the text of any price review clause should be considered.We examine some of the key issues to be considered in evaluating the market benchmarks referenced in these clauses and some of the complexities associated with quantifying market value by reference to these benchmarks. Ultimately, many factors must be considered and reconciled in the context of a price review claim. For the lawyers involved in these cases, it is critical to understand both aspects separately and in tandem to arrive at a coherent and comprehensive analytical framework