Structuring LNG Tolling Agreements: Negotiating Fee Structure and Payment, Lifting Terms, Liability, and Other Key Provisions

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, May 16, 2017

Recorded event now available

Program Materials

This CLE webinar will provide guidance to energy counsel on the structuring of LNG tolling agreements. The panel will provide insight on key considerations when negotiating the agreement and key provisions to be included.

Description

The tolling agreement is a key component in the implementation of an LNG project structure and has significant impact on the project’s long-term success. Tolling agreements, typically long-term arrangements, must address several key issues including the project fee structure, payment, and liability, as well as termination rights and force majeure, among others.

The parties should also take into consideration the use of the tolling facility by multiple parties and whether the project is integrated. Legal counsel must understand the challenges, realities and expectations to structure tolling agreements when implementing an LNG tolling structure.

Listen as our authoritative panel of energy attorneys examines the key issues that should be addressed when implementing an LNG tolling structure. The panel will address fee structure, payment, lifting terms and allocation, and other key provisions of the agreement. The panel will offer best practices for negotiating and structuring LNG tolling agreements.

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Outline

  1. Key considerations when implementing an LNG tolling structure
  2. Key provisions
    1. Fee structure and payment
    2. Lifting terms and allocation
    3. Annual delivery program
    4. Liability
    5. Third-party tolling
    6. Termination rights and force majeure
    7. Other key provisions
  3. Best practices for negotiating and structuring LNG tolling agreements

Benefits

The panel will review these and other key issues:

  • What are the advantages and disadvantages of a tolling agreement?
  • What are the critical provisions of tolling agreements?
  • What strategies should be used when dealing with multiple tolling agreements applicable to the same project?

Faculty

Monica Hwang
Monica Hwang

Counsel
King & Spalding

Ms. Hwang in active in the firm’s Global Transactions Practice Group. Before becoming a lawyer, Ms....  |  Read More

Taylor Johnson
Taylor Johnson
Assistant General Counsel
Cheniere Energy
Kathryn (Kathy) Marietta
Kathryn (Kathy) Marietta

Partner
King & Spalding

Ms. Marietta has particular expertise in LNG as well as considerable experience in engineering, procurement and...  |  Read More

Matthew F. Salo
Matthew F. Salo
Senior Counsel
Freeport LNG

Mr. Salo has worked on multiple LNG liquefaction tolling agreements and sales and purchase agreements as both in-house...  |  Read More

Audie Setters
Audie Setters

CEO
Lonestar LNG

Mr. Setters has 35 years of oil, gas and LNG experience. He has played an integral role in gas/LNG marketing,...  |  Read More

Nathan Will
Nathan Will
Commercial Vice President
Freeport LNG