Our success is built on our clients’ success. We have a long and distinguished history of supporting our clients wherever they do business, from major financial centers to emerging and growth markets. We represent many of the world’s leading corporations and major financial institutions, as well as emerging growth companies, governments and state-owned enterprises, often working on ground-breaking, precedent-setting matters. With a deep understanding of our clients' businesses and the industries they operate in, our work is driven by their need for outstanding legal and commercial advice.
Japan, the world's biggest buyer of liquefied natural gas ("LNG"), is currently investigating the potential anticompetitive effects of territorial restrictions in LNG supply contracts.
Japan, the world's biggest buyer of liquefied natural gas
("LNG"), is currently investigating the potential
anticompetitive effects of territorial restrictions in LNG supply
contracts. Historically, LNG suppliers have used long-term
contracts that incorporate territorial restrictions to prevent
Japanese buyers from on-selling the LNG outside Japan. The effect
of such clauses is to ban exports of LNG bought by Japanese
customers. While this may have increased Japanese energy security,
LNG suppliers have benefited from the absence of price arbitrage
between Japan and neighbouring markets. This contractual framework
eliminates the buyers' scope to trade LNG with other countries.
The concern is that such territorial restrictions could now be
resulting in a reduction in trading volumes, liquidity and
increasing buy-side risk.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.