LNG Trading
Our experience with LNG trading dates back over 10 years. We have collectively reviewed in excess of 200 LNG Master Sale and Purchase Agreements and their associated documentation. We are adept at reviewing tender documentation, financing structures, terminal agreements and LNG ship charterparty and insurance arrangements. We have particular expertise in the trading of LNG globally including capacity rights and hub trading.
Having worked with traders and originators to review innovative arrangements we have helped to develop various LNG portfolio optimisation strategies and legal structures for our clients. Our experience extends to the drafting of bespoke, long-term trading arrangements whether via long term Sale and Purchase Agreements or structured confirmations. We are also able to offer expert advice in relation to all day-to-day flow work as an extension of your in-house legal team.
With a strong commercial approach we are able to provide a very cost-efficient solution to your LNG legal requirements.
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Gas & Power
We provide advice on bespoke agreements as well as market standard contracts. We understand the complex legal mechanics behind the EFET, ISDA, FOA and master netting documentation and have been involved in the drafting of these standard contracts at industry working groups. Additionally, we have produced in-house standard forms, user guides and negotiation matrixes for clients.
We have acted for clients in setting up gas and power trading operations in the UK and several other European countries. This work has involved overseeing and advising on licence applications, TSO rules and membership of exchanges.
We have advised on and negotiated transactions involving the wholesale supply of gas & power to UK and European electricity suppliers, the set-up of direct market access gas and power trading arrangements and the sale of gas and power portfolios of trades. We have negotiated and advised on long term power and gas sale and purchase agreements, tolling agreements and gas storage and repo agreements (winter-summer price arbitrage).
We have advised on the acquisition of several European power stations. We also advise on UK power station development projects.
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Thought leadership from Mercatis Law
Our latest LNG, gas and power trading insights
Long Term LNG Supply and Purchase Agreements: Contractual Mitigants for a Challenging Market
The global COVID-19 pandemic and the recent oil price shocks are compounding the issues arising from an already oversupplied LNG market, providing for additional challenges to LNG traders globally. In this client alert we will identify the most common clauses typically found in SPAs to help mitigate challenging market conditions.
Changes to UK Gas Transmission Charges: Ofgem UNC678 Consultation
A quick look at Ofgem’s ‘minded to’ consultation regarding changes to gas capacity charges under the the Uniform Network Code (UNC678).
The LNG MSPA – An Introduction
This client alert provides a brief introduction to LNG MSPAs, outlines their key provisions and identifies issues to look out for.
When your binding LNG trade is non-binding
The deal sheet for your firm LNG trade will likely contain a free option for a party to walk away from the deal. Find out what this is, why it’s there and best practice to mitigate the risks.
Japan Bans LNG Destination Restrictions in FOB Contracts
Japan bans destination restrictions in FOB sales – considers if take or pay and profit shares are anticompetitive.