With CN`s enforcement process, MSPA is long documents, very complex and generally requires a lot of negotiation between legal teams. There is a good chance that MSPA conditions will not be reached in a tight period of time. Ilaria Conti, efet Communication Officer, Ilaria.Conti@efet.org Jan Haizmann, Co-Chair of the EFET Legal Affairs Committee, Haizmann@efet.org This agreement is an industry-wide compromise agreed within the Legal Task Force LNG over a period of approximately one year. It is clear that the effects of a counterparty that renounces a deal considered firm are potentially catastrophic. If a charge has been resold and a CN has been exported for that resale, if the counterparty is part of the original transaction and uses the “subject too” language as a basis, there would probably be no legal right of action against that original party. In the best case scenario, the trader stuck in the middle will short leave a load that must be covered in the spot market at an unknown price or from his own larger portfolio, or, in the worst case, be held responsible for not delivering to the later part. Master sales and sales contract. This agreement represents a sectoral share of established commercial enterprises and the large European distribution companies have their own bespoke master`s contracts and it is not certain that they will adopt the new standardised contract. However, many small European and commercial houses do not have separate models, which can lead to delays or companies that do not purchase spot cargoes in a timely manner. Extracted from the EFET agreement, it is possible to modify the standard MSPs so that an agreement is considered to be concluded once it has been concluded (regardless of the method used to reach an agreement).
The inclusion of a provision similar to that provided in the EFET agreement, which considers all future LNG operations between the parties to be exchanges under the MSPA, is also desirable if this option is chosen. Standard document and downloadable at www.efet.org2. The new Ex-Ship (DES) Standard Master sales and sales livery took about a year to establish development and included the participation of more than 40 representatives of companies active in the energy trade, said EFET.