Many LNG contracts are long-term and can extend over a period of 20 years or more. As a result, the contractual price agreed upfront for the product may not reflect market fluctuations and other changes in circumstances some years down the line.
A price review clause in an LNG contract allows the parties to try and agree on an adjustment of the contractual price of the LNG in specific circumstances set out in the contract. This article sets out some considerations regarding such clauses and also considers the interrelationship with force majeure and economic hardship clauses.
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