LNG Offshore Production and Regasification : Legal and Commercial Risk Management

Omtale

This is the first book to focus on the law and practice relating to the production and delivery of liquified natural gas (LNG) using offshore floating facilities. This segment of the offshore oil and gas industry has been growing over recent years and has now assumed special importance in the wake of interruption to international gas supplies, with a number of countries turning to importing LNG through floating offshore regasification units in order to protect their energy security. The reader will gain a thorough understanding of the operational risks as far as these are relevant to contractual obligations and potential liabilities. The book draws on the relevant maritime and commercial law, applying this with specific focus on the requirements of offshore facilities liquefying, carrying and storing a cargo at -162C, then regasifying and transferring the same onshore. The contracts relating to the operation of these facilities mirror some aspects of conventional LNG vessel charters but include important additional features specific to offshore LNG operations. The discharge of LNG from a sea-going vessel into a receiving floating, storage and regasification unit (FSRU) (and the storage and regasification of LNG into the receiving pipeline) may be problematic and lead to significant commercial consequences if there is underperformance. The allocation of related risks as between the LNG owner and the FSRU operator and other interested parties is analysed in this book. The authors also consider the specific legal issues pertaining to production of LNG offshore in a floating facility (FLNG), and the role of LNG as a transition fuel used to meet current low-carbon targets. This book will be invaluable to legal practitioners advising clients engaged in developing and operating offshore LNG projects, project managers and related insurers, financiers and commercial parties. It will also be of direct relevance to gas production, distribution and utility companies, and to maritime commercial centres.