Nuances Of Natural Gas Supply Contract Arbitration

Law360, New York (May 12, 2010, 11:43 AM EDT) -- Significant value is at stake when parties go to arbitration over the price of gas supplied under long-term natural gas supply agreements, particularly when oil and gas prices diverge as they do now. In this article we explain the economic theory underpinning these contracts and show how the theory can lead to a credible case to present at arbitration.

Over the course of advising clients in some dozen gas arbitrations in Europe and Australia, we have seen claims for significant changes in price from both buyers...
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