BP publishes Delivered Ex-Ship Master Sale and Purchase Agreement template for LNG transactions

BP, one of the world’s leading producers and traders of liquefied natural gas (LNG), is the first major oil and gas business to publish its LNG Master Sale and Purchase Agreement template for Delivered Ex-Ship transactions (the BP DES LNG MSA). The BP DES LNG MSA allows either party to buy or sell physical LNG cargoes on a Delivered Ex-Ship basis.

As BP operates an established LNG portfolio, both buying and selling LNG, the BP DES LNG MSA has been developed over many years to be balanced and fair between buyers and sellers. BP expects that its publication will contribute to the broader discussion around standardization and liquidity for LNG transactions.

The BP DES LNG MSA has also been refined over time to reflect current industry standards. As with BP’s General Terms & Conditions for Sales and Purchases of Crude Oil and Petroleum Products (GT&Cs), the BP DES LNG MSA will continue to evolve with developments in the LNG industry.Publication of the BP DES LNG MSA comes at a time of major growth for both BP’s LNG business and the wider LNG industry. As a significant global participant in the LNG industry, BP continues to invest in new and innovative solutions to meet the needs of its customers, including expansion of both its equity and merchant LNG capacities.  BP’s 2019 Energy Outlook sees gas overtaking coal as a share of primary energy in the period to 2040, driven in part by the rapid expansion of a global LNG market.

Jonathan Shepard, head of LNG for BP Supply and Trading, commented: “We’re publishing the BP DES LNG MSA to promote efficiency in the rapidly growing global LNG industry by disclosing our standard LNG trading terms. We believe that being open and transparent in the way we do business is the best way to engage effectively with new and existing LNG partners.”