Business case
A 20-year Delivery Ex-Ship LNG sale agreement gave rise to disputes over mitigation efforts during the COVID-19 pandemic, after the claimant exercised its right to cancel several LNG cargoes.
Our analysis revealed gaps between reported mitigation results and actual vessel use, showing that the respondent had optimised its position rather than mitigated penalties. This helped validate the claimant’s position and resulting damages.
We analysed LNG and shipping market dynamics, tariff components, take-or-pay obligations, and upstream agreements. Using vessel chartering models, we compared actual vessel use against alternative legal interpretations of mitigation efforts, considering seasonality, spot prices and key geographies.