Gas Price Arbitrations: A Practical Handbook

Volatility in the commodity markets - together with events such as the financial crisis, liberalisation of the gas markets in Europe, the development of gas hubs and the continuing influx of liquefied natural gas (LNG) into Europe - has put increasing pressure on pricing in many long-term gas sales agreements into continental Europe. This has led to a huge rise in the number of gas price review disputes, many of which require determination before an international arbitral tribunal. This practical handbook covers the various aspects of international gas pricing disputes. It contains contributions from leading international arbitration practitioners and arbitrators in the field, in-house counsel and industry experts. It covers the various stages of a gas pricing dispute, from drafting the clause to triggering a review, all the way through the various stages of the arbitral process. It also contains insights into how pricing in Europe may develop in the future and the effect that this may have on dispute resolution. Despite the large number of high-value disputes in this area, this is one of the very few publications to draw together the various strands of gas pricing disputes into one book. It is therefore an invaluable guide for practitioners, in-house counsel and anyone else with an interest in this area.

Table of Contents:
Preface 5 Professor Jonathan Stern Oxford Institute for Energy Studies Drafting an effective price review clause 9 Mark Levy Allen & Overy LLP Procedural issues arising in price review arbitrations 21 Michael Young Allen & Overy LLP The trigger phase 33 Marnix Leijten Martje de Vries Lentsch De Brauw Blackstone Westbroek NV Confidentiality in gas price reviews 47 Philippe Pinsolle Quinn Emanuel Urquhart & Sullivan LLP Changes of circumstances as a price modifier 63 Michael Polkinghorne White & Case LLP The arbitrator’s role 91 George von Mehren Squire Sanders The client’s perspective 103 Tristram Kennedy Harper Sirius Well Manufacturing Services (a Royal Dutch Shell joint venture) Role of the expert in price review arbitrations 117 Colm Gibson Energy and utilities expert Dr Boaz Moselle FTI Consulting The adjustment phase 129 David Mildon QC Essex Court Chambers The future for price reviews 141 Paul Griffin Frances van Eupen Allen & Overy Appendices 157 About the authors 179 Index 185

Review :
The strength of this publication lies in its original, thorough and extremely detailed analysis of the stages of the gas pricing dispute and the arbitral process as well as the perspective it gives on possible pricing developments in the future and the role of dispute resolution in this context. This is a very useful book and it will find its way on to many book shelves. Undoubtedly, copies in legal offices worldwide will already have heavily underlined passages, as counsel (and experts), pick out exactly the points that they wish to make in their forthcoming hearings.