Opening an LNG sales contract is opening a can of worms. Those are the collaterals for big financings and some of the projects involved struggle to make a living under today’s prices. They have to resort to all kinds of painful measures in order to straighten the books and the expectations of some powerful people. The last thing they want is touching the collateral they think they have which is the SPA’s. If those clauses are invalid by some outside influence, then that’s the way it is. But they cannot sit down and negotiate them out on their own accord as this would expose them to all kind of attacks. This can only be done unilaterally.
Japan’s trade ministry on Monday spelt out ways that buyers and sellers of liquefied natural gas (LNG) can rework supply contracts to remove restrictions on resale of cargoes which Japan last year said were anti-competitive.