Gas Supply

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Gas Supply and Purchase
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Gas Supply and Purchase is  governed by the gas
supply and purchase agreement (GSPA)
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Basics of a successful GSPA
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Basics of a Successful GSPA ctn
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GSPAS Paradoxes
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GSPAS Paradoxes
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GSPA Formats

• GSPA are either for long-term delivery or spot
  sale but the industry has Three basic variations
  of GSPA's commonly used and differ in structure

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GSPA Variations
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Depletion or Dedication GSPAs
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The Gas Supply contract GSPAs

• Long-term Supply Contract Format The Seller is
  obligated to meet the delivery requirements of
  the Buyer for the duration of the contract
  regardless of the source of supply

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Spot Sale GSPA 3-5 years

• Short term supply contracts obliging the seller
  to meet delivery requirements and are mainly
  encountered in mature markets
• Used in liberalized markets using so-called
  Electronic Bulletin Boards to match daily or
  weekly nominations for demand with sources of
  supply
• A key feature is the recognition of both written
  and oral agreements
• There are standard formats developed with a
  handful of conditions reflected in the one page
  transaction sheet
• They give attention to transportation details

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GSPA Contract Structure
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn

• It is possible that excess gas will either be
  priced at a discount or premium to MDQ

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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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Billing and Payment
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Quality
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Measurement

• The articles on Measurement, Measuring Equipment
  and Testing set the standards and equipment to be
  used in monitoring the physical characteristics
  of the gas. 
• Metering clauses can be fairly complex, detailing
  not only the methodology for measuring the gas
  but also the responsibilities of the parties in
  applying the procedures
• Measurements from separate Check meters can
  differ with reading from the sale meter. It is
  standard practice to assign responsibility for
  the measurement facilities to the Buyer and to
  give the Seller the opportunity to check
  calibration of the Buyer's metering equipment.  
• The measurement of gas also involves procedures
  for testing the equipment on a regular basis. The
  Buyer is obliged to pay for all tests when the
  inaccuracy is less than a stated minimum. The
  buyer is obliged to pay for all tests when the
  inaccuracy is less than a stated minimum.

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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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GSPA Contract Structure ctn
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LNG AND PIPELINE CONTRACTS 

• BREAK