Structuring LNG Tolling Agreements: Negotiating Fee Structure and Payment, Lifting Terms, Liability, and Other Key Provisions

The tolling agreement is a key component in the implementation of an LNG project structure and has significant impact on the project’s long-term success. Tolling agreements, typically long-term arrangements, must address several key issues including the project fee structure, payment, and liability, as well as termination rights and force majeure, among others.

The parties should also take into consideration the use of the tolling facility by multiple parties and whether the project is integrated. Legal counsel must understand the challenges, realities and expectations to structure tolling agreements when implementing an LNG tolling structure.

Listen as our authoritative panel of energy attorneys examines the key issues that should be addressed when implementing an LNG tolling structure. The panel will address fee structure, payment, lifting terms and allocation, and other key provisions of the agreement. The panel will offer best practices for negotiating and structuring LNG tolling agreements.

1. Key considerations when implementing an LNG tolling structure
2. Key provisions
   1. Fee structure and payment
   2. Lifting terms and allocation
   3. Annual delivery program
   4. Liability
   5. Third-party tolling
   6. Termination rights and force majeure
   7. Other key provisions
3. Best practices for negotiating and structuring LNG tolling agreements

The panel will review these and other key issues:

• What are the advantages and disadvantages of a tolling agreement?
• What are the critical provisions of tolling agreements?
• What strategies should be used when dealing with multiple tolling agreements applicable to the same project?