MLNG Tiga stoppage puts focus on LNG supply risk

Malaysia LNG Tiga (MLNG Tiga) invoked force majeure, following a blaze on 16 August 2003, at a production line of its plant in Bintulu in east Malaysian state of Sarawak. According to the Kogas source, six 60,000-tonne cargoes, due to be delivered in September, were affected immediately by the temporary supply halt. Fortunately, a decrease in energy consumption meant that Kogas was not hit by the shortfall.
MLNG Tiga stoppage puts focus on LNG supply risk MLNG Tiga stoppage puts focus on LNG supply risk MLNG Tiga stoppage puts focus on LNG supply risk MLNG Tiga stoppage puts focus on LNG supply risk MLNG Tiga stoppage puts focus on LNG supply risk

Kogas potentially having to rely on the spot market to make up for lack of LNG supplies only emphasises the potential importance of spot trading and the need for flexible contracts in the future. In addition to this, MLNG Tiga invoking force majeure is prompting key players to examine closely purpose and effect of this key clause in LNG contracts.

A unique conference in December will be looking at these key issues that are shaping how to effectively mitigate and manage risk across the LNG supply chain. This major Asian event will enable major LNG players to implement all key contracts such as the offtake agreement, SPA's and supply contracts from both the point of view of the seller and buyer.

This conference brings together an unrivalled speaker assembly from leading operators such as BG Group PLC, BP Global LNG and Petronet LNG and legal law firms such as King & Spalding, Vinson & Elkins LLP and Holman Fenwick Willan. The combination of timely topics and expert speakers make this event a unique opportunity for commercial managers, marketing managers and legal counsel to network. Norman McLennan of ChevronTexaco said of the last event in the series: "Presentation content very good - very useful techniques and excellently run."

The format is a mixture of 16 sessions, including formal presentations, roundtable discussions and panel discussions chaired by Matthew Evans, Legal Counsel South Asia of BG Group PLC. Topics range from project financing from the banker's view, risks for LNG seller and buyers in a liberalised market to timely issues such as implementing key clauses like force majeure. There will also be post-conference workshops that will address: drafting shipping contracts, dispute resolution and mitigating political risk.

Contract Risk Management For The LNG Supply Chain is an Oil & Gas IQ conference.

This unique event is to be held at the Sheraton Imperial Kuala Lumpur, Malaysia from 3-5 December 2003.

Contact: Oil & Gas IQ (a division of IQPC), 1 Shenton Way #13-07/08, Singapore 068803

Tel: (65) 6722 9388 Email: desiree.tung@iqpc.com.sg Web: www.iqpc.com.sg/AS-630

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