Law360, New York (November 4, 2015, 10:41 AM EST) -- Destination restrictions on purchased liquefied natural gas present another area for potential disputes. Traditional sale and purchase agreements often contain provisions relating to restrictions on the destination of purchased LNG. These restrictions are often seen in two different types of clauses: (1) diversion right clauses, which give the buyer a certain amount of flexibility regarding the initial destination of the LNG being transported by the seller; and (2) destination restriction clauses, which restrict the destination of the LNG to a defined geographical area after it is in the possession of the buyer. This third article in our series on LNG disputes will discuss a recent arbitral dispute concerning diversion rights and destination flexibility under a long-term LNG SPA and the investigations of profit-sharing mechanisms in SPAs undertaken by the European Commission....