Abstract

The Asia-Pacific region dominates global demand for liquefied natural gas (LNG), as large volume purchasers in Japan, South Korea and other countries have entered into numerous long-term import contracts. The terms of many of these contracts are based upon market factors that no longer necessarily apply, putting many LNG purchasers into an adverse position as they pay higher prices (often referred to as the "Asian Premium"). Contractual price review mechanisms and contract law remedies may offer some relief to these buyers through negotiation and / or arbitration.