Trends in eastern Australia gas sale agreements
James PlumbCarter Newell Lawyers
The APPEA Journal 55(1) 225-232 https://doi.org/10.1071/AJ14017
Published: 2015
Abstract
The development of an LNG export market in Queensland in recent years has seen the eastern Australia gas market transform from an isolated, relatively stable and low-priced market to an international market with higher, more variable prices. These structural shifts are changing the landscape for negotiators of domestic gas sale or supply agreements (GSAs) in eastern Australia.
With much production now underpinned by export projects, sellers are increasingly unwilling to commit to long-term domestic supply arrangements, and are more willing to adopt a take-it-or-leave-it approach when considering other terms of trade. Pricing mechanisms are also moving into line with the new exposure to global forces.
This paper examines how some of the key standard terms in GSAs are being addressed in the market particularly in respect of pricing mechanisms.
James Plumb is a partner in Carter Newell’s Resources group. He has over 12 years experience advising and acting for clients with projects in Queensland and other jurisdictions within Australia and overseas. James advises primarily in respect of the sale and acquisition of mining and petroleum projects, the negotiation of commodity sale and transportation arrangements, operating and joint venture relationships, the impact of various state-based petroleum and mining regulatory regimes, land access and compensation requirements, royalty arrangements and overlapping tenure negotiations. James is a past president of QUPEX Inc (the Queensland Petroleum Exploration Association), a Queensland committee member of the Australian Resources and Energy Law Association (known as AMPLA), and a member of the Australian Pipeline Industry Association. James is regularly asked to present at industry and legal conferences, and is often published in academic and industry journals on topics relating to his area of expertise. |
