Recent volatility in the global LNG demand, in particular since Russia’s invasion of Ukraine in February 2022, may have heralded a new, disruptive phase in the LNG market. This has been evidenced by recent high-profile disputes.

Traditionally, LNG was dominated by long-term, experienced players, and disputes were typically resolved commercially or through private arbitration. However, the surge in demand has brought new entrants into the market, disrupting the traditional balance of power. This shift, coupled with geopolitical tensions and volatile gas prices, signals a rise in industry disputes for 2024. 

Key issues likely to emerge include:

• Arguments around failure to deliver and potential contract terminations, 
• Disagreements around the invocation of force majeure clauses, and 
• Potential disputes over price reviews. 

The year ahead could be a pivotal one for the LNG sector and suppliers and offtakers alike will need to be mindful of the key flashpoints in their SPAs.

This is just one of the issues considered at this week’s Gastech 2024 conference.