Liquified Natural Gas meaning

Centrica Plc and Energy Capital Partners (ECP) announced that Garden Bidco — a jointly owned vehicle — is set to purchase the Isle of Grain LNG terminal on Kent’s coastline. The purchasers said the transaction represents a chance to invest in an ever more important source of energy for the UK. Centrica and ECP will each commit £200m for a 50% holding in the LNG facility east of London, once £1.1bn of project finance debt is taken into account. Slaughter and May is serving as Centrica’s legal adviser; the company owns British Gas and is a constituent of London’s blue‑chip FTSE 100. The firm’s team is led by London corporate partners Robert Innes and Natalie Cook. Latham & Watkins LLP is advising ECP, which forms part of global private asset investor Bridgepoint Group...

There are various industry-standard Master Agreements for LNG Sale and Purchase Agreements (LNG SPA), each setting out slightly differing risk matrices for buyers and sellers. This Practice Note provides swift access to widely used model-form LNG SPA Master Agreements, which were released by market participants...

Introduction The business model that supports a liquefied natural gas (LNG) project is crucial, as it shapes the project’s overall risk profile and, in turn, the form of financing required. The selection ultimately rests on several factors, such as risk appetite, fiscal and tax drivers, and the investor’s financing considerations, alongside whether they wish to invest in one or more segments of the LNG chain (for more on the LNG value chain, see Practice Note: LNG—an introduction). LNG projects can be configured in a range of ways: integrated/non-integrated merchant/tolling In an integrated arrangement, ownership is aligned across the whole LNG chain, from production through to liquefaction—that is, one or more investors holding the underlying upstream concession/PSC also hold the rights to the natural gas reserves...

Types of Liquefied natural gas (LNG) is often handled as a portfolio commodity, whereby a participant may break up several long-term sales agreements into short-term transactions to optimise transport costs and balance supply obligations with market conditions. The LNG sector also maintains its own spot-trading market, in which cargoes are bought and sold through competitive tenders and brokered trades. Alternatively, swap arrangements—under which two buyers or two sellers agree to swap cargoes—are becoming a more common trading model in the LNG industry. The common types include: short-term sales agreements—one to five-year bilateral agreements, often with little flexibility of terms master agreements—a popular arrangement under which seller and buyer sign an agreement that sets out the general terms under which they will buy and sell LNG, without committing the parties to an obligation to actually buy or sell specific quantities...