Long-Term Sales and Purchase Contracts: To Be or Not To Be?
Article from: OGEL 4 (2021), in National and International Issues in Natural Gas Development
Prospects of long-term contracts (LTCs) in international trade are a subject of an ongoing discussion. An alternative to long-term and medium-term contracts are short-term supplies and spot transactions. Herein we treat LTCs somewhat differently from generally accepted way in the gas industry - long-term contract means a contract of five or more years in duration instead of ten and more. We regard medium-term contract as a contract of one to four years, short-term contract lasts for less than a year, and spot contract - as less than three months between its signing and execution. ...