WHERE THE SALES CONTRACT AND THE TRANSPORTATION CONTRACT MEET: VITAL CLAUSES AFFECTING LNG PROJECT PARTICIPANTS
Experience in the LNG trade has reinforced rather than diminished the early recognition that the interdependence of seller, buyer and transporter is greater in LNG commerce than in any other international trade. Consequently, it seems likely that their roles, while remaining functionally separate, must come to be viewed as more contractually interdependent. This paper examines those matters customarily contained in an LNG sales contract which reflect the unique transportation requirements of the project, and those matters customarily contained in an LNG transportation contract which reflect the unique LNG sale. Five general areas of common interest to buyers, sellers and transporters of LNG are identified: 1. Physical facilities, namely, the terminal and port, and the vessel; 2. Vessel services, supplies and charges in the port; 3. Cargo custody transfer in the port; 4. Voyage operations and safety regulations; and 5. Excuse and enforcement of contract performance. Implicit in this analysis is a bias in favor of achieving some degree of uniformity in the treatment of common areas of both contracts. The goal is to reduce risks arising from unintended omission or variation in contract clauses of common interest to all project participants.
- Sixth International Conference on Liquefied Natural Gas held at the International Conference Hall, Kyoto, Japan, April 7-10, 1980; Volume 2 of 2, Sessions 3 and 4.
Institute of Gas Technology3424 South State Street
Chicago, IL United States 60616
- Greenwald, G B
- Publication Date: 1980
- Pagination: p. 1-11
- TRT Terms: Contract administration; Custody; Freight handling; Intermodal terminals; Liquefied gases; Liquefied natural gas; LNG terminals; Safety; Tankers; Trade
- Old TRIS Terms: Custody transfer; Lng handling; Lng safety; Lng trade; Terminal facilities
- Subject Areas: Administration and Management; Freight Transportation; Marine Transportation; Safety and Human Factors; Terminals and Facilities;
- Accession Number: 00322620
- Record Type: Publication
- Report/Paper Numbers: Paper 2, Session 4 Conf Paper
- Files: TRIS
- Created Date: Nov 29 1980 12:00AM