Analyse de rentabilité
A 20-year Delivery Ex-Ship LNG sale agreement gave rise to LCIA arbitration following the cancellation of several LNG cargoes during the COVID-19 pandemic. The claimant sought c. EUR 100 million in damages, alleging that the respondent had failed to comply with its mitigation obligations after the cancellations.
The analysis gave the Tribunal a practical economic test for conduct that was embedded in a complex LNG logistics and contractual framework. Through the expert evidence and cross-examination, the Tribunal could compare reported mitigation outcomes with vessel use, market seasonality, spot opportunities and geographic constraints, and assess whether the conduct reflected mitigation or commercial optimisation.
Our experts tested the respondent’s mitigation conduct against LNG and shipping market dynamics, tariff components, take-or-pay obligations and upstream agreements. We developed vessel-chartering models comparing actual vessel use with alternative interpretations of the respondent’s mitigation obligations.