BP publishes LNG contract templates to push industry standardization

SINGAPORE (Reuters) – Global oil and gas major BP has published its master sales and purchase contract templates for its liquefied natural gas (LNG) trading business and says it is the first of its peers to do so. BP, which has a global LNG portfolio made up of volumes it has produced or bought, said on its website it expects that publishing its LNG master sales and purchase agreement (MSPA) templates will “contribute to the broader discussion around standardization and liquidity for LNG transactions.” The LNG industry has been pushing to streamline and standardize the contracts that govern its market to cut down on red tape and lengthy negotiations to speed up the commodity’s transition to an oil-like trading model. A BP spokeswoman did not reply to a Reuters query on the matter, but the company said in a press release earlier this year that it wants to promote efficiency in the rapidly growing LNG industry by disclosing its standard LNG trading terms. BP already has a standardized template – known as its general terms and conditions (GT&Cs) – for the sale and purchase of crude oil and refined oil products that is widely used by other companies as well.… continue reading

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