China as a Global Clean Energy Champion – Lifting the Veil

Abstract

tory to establish the value of natural gas or competing fuels in a specific market. In principle, liberalisation and the development of liquid gas hubs should reduce the need for price review clauses in new agreements, ‘since hub indexation eliminates (or at least greatly reduces) the risk of mismatches between prices in long-term import contracts and market prices of natural gas’ (Agosti and Moselle, p 183). Following the important arbitrations involving Gazprom and other major energy companies in the context of the EU gas market liberalisation, most attention is now on Asia where market reform is ongoing (eg in China), with expected impacts on long-term contracts. Perhaps more importantly, the coronavirus-related collapse of energy markets in 2020 and the transition towards decarbonised energy systems are major market developments that will almost inevitably result in gas and LNG price arbitrations. Gas and LNG Price Arbitrations provides a useful guide to help understand the purpose and use of price reviews and to navigate the tension between the stability and flexibility of gas and LNG contracts in the context of rapidly changing energy markets.