Gas price reviews in long-term contracts—past, present, and future
Craig LangfordMDQ Consulting.
The APPEA Journal 54(2) 493-493 https://doi.org/10.1071/AJ13066
Published: 2014
Abstract
Price reviews in long-term gas contracts have been part of the commercial landscape in the Australian gas market. Any industry senior executive who has been heavily involved in a gas price review, in particular a review involving a gas arbitration, usually asks themselves at the end of the process if a better way exists. How can gas price reviews be improved is the basis of this extended abstract. Analysis of the past, present and future gas price reviews assists this objective. The past considers the historical nature and the commercial philosophy of price reviews addresses questions such as:
Why do we need them?
What price is a price review trying to establish?
What is a market price in the Australian gas market context?
Do price reviews determine present or future prices?
The present considers current price reviews, covering topics such as what’s good and bad practice in today’s price reviews, including the arbitration process. The future looks issues such as the role and importance of price reviews in the next 10 years, what’s needed to make gas price reviews obsolete, how do price reviews work in a transitional market with both Australian and US oil-linked-contract prices under review and better commercial and legal concepts for future price reviews.
Craig Langford has more than 17 years of experience in the oil and gas industry, working for Santos and now as a director of MDQ Consulting. MDQ Consulting is an independent advisory business, providing strategic and commercial advice to a range of upstream and downstream companies. Prior to working for MDQ Consulting, he worked at Santos for more than 12 years in numerous senior strategic and commercial roles in Brisbane and Adelaide. For the past five years at Santos, he was manager for the commercial activities of Santos’s east Australian gas business, providing leadership on gas marketing, company strategy and business development. He has in-depth operational understanding and market experience in the Australian gas industry and has represented Santos and APPEA on a number of government and industry groups. |
