LNG/ FSRUs/ FLNG

Recognised as a tier 1 practice by Chamber and Partners, Stephenson Harwood is a leading international firm in LNG and one of very few firms which routinely handles complex and novel projects throughout the LNG sector. Our experience covers all aspects of the value chain, from (i) offshore exploration and production, to (ii) floating processing and liquefaction (whether offshore or nearshore), (iii) transportation and (iv) floating re-gasification.

Importantly, members of the team have been actively involved in the Baltic and International Maritime Council's (BIMCO's) documentary committee on the terms for a LNG charter form, endorsed by GIIGNL.

Most recently, Stuart Beadnall co-authored INTERTANKO's Guide to LNG Chartering, covering the commercial and legal aspects of the carriage of liquefied natural gas (LNG) by sea. The team is currently producing the first legal text on Offshore LNG, to be published early 2024.

Our expertise includes:
 

  • Production / FLNG. Advising on a number of newbuild and conversion LNG FPSO projects.  This work combines our FPSO experience with our understanding of the particular risks posed by LNG.
     
  • Liquefaction. Advising on floating liquefaction and storage facilities where processed gas is received from a pipeline. 
     
  • Shipping. Handling the LNG-specific issues that arise when drafting and reviewing charterparties for LNG vessels, such as the issues posed by boil-off, differing propulsion systems, heel retention etc.  
     
  • Transportation and re-gasification. Assisting with specialised vessels equipped to trade and discharge re-gasified LNG at buoy mooring systems. 
     
  • FSU/FSRU. Advising on a number of floating storage and re-gasification projects, including advising on the conversion of LNG carriers.

Our experience includes:
 

  • Advised a main contractor on an EPIC contract for an FLNG project offshore Mozambique.
     
  • Advised on the contract (including liability and insurance clauses) for a project to convert an LNG vessel into an FSRU.
     
  • Advised on the liability and insurance arrangements for an FSRU project.
     
  • Assisted clients in a shipbuilding dispute involving two LNG newbuildings that have been found to have serious latent defects in the cargo containment system during their voyage to load port, compromising the vessels' ability to safely carry LNG cargo. Given the long term charterparties both vessels have entered into, and their inability to carry cargo, we advised clients on ways to minimise any loss that may arise from the latent defect in both vessels, including pursuing the shipbuilders under the relevant shipbuilding contracts and advised on possible claims under various insurance policies.
     
  • Reviewed draft MoU concerning the delivery of a Small Scale FSRU (10K x 3 and 24K x 1) and provided client with detailed legal analysis on every clause.
     
  • Advised the Owners of two LNG shuttle and re-gasification vessels in London arbitration concerning $50m+ performance claims under long term time charters.
     
  • Advised a major utility company on LNG shipping arrangements , including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules.
     
  • Advised shipowners on liability for cost of IMO 2020 compliance under various long term LNG charters.
     
  • Drafted a charter for LNG FSU project.
     
  • Various advice on proposed FLNG project.
     
  • Advised a national oil company on FSRU conversion contract and related Charter.
     
  • Advised an EPC contractor on FSRU (barge plus LNG FSU) for power plant project.
     
  • Advised a lead LNG shipowner bidding on the Yamal LNG project (advising on both the terms of their shipbuilding contracts with the proposed yard, and also the charter term with Yamal).
     
  • Regular ad hoc advice to leading IG Clubs and their members in relation to LNG related issues.
     
  • Advised a new start-up in relation to an LNG bunkering barge.
     
  • Negotiated a 20-year and a medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.
     
  • Advised on numerous disputes concerning LNG charter operations including disputes concerning boil-off consumption warranties, LNG cargo contamination, LNG lost as boil-off during off hire, loss of boil-off gas due to venting, shortage claims, OPEX disputes, claims concerning operation of reliquifaction equipment and termination of long term LNG charters.
     
  • Advised on and drafting terms for LNG spot cargo fixtures including drafting pro forma terms of GIIGNL and BIMCO documentary committees, drafting terms for a prototype LNG contract of affreightment and advising the Intertanko LNG drafting committee. 
     
  • Advised on the first ever offshore regasification project, drafting terms for numerous LNG FSRU projects and advising on performance warranties, compliance with local regulations, and advising on related modification, JV and management contracts.
     
  • Advised on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico.

 

To sign up to our LNG transportation, trading and offshore production industry bulletin, Well Heeled, please email [email protected] 

Global reach

From our offices in the UK, China, Dubai, Paris, Singapore and South Korea, we have extensive experience in offshore oil and gas projects and resolving international disputes. 

 
 

Qatar

Qatar

Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.
 

Russia

Russia

Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

Advised a lead LNG shipowner bidding on the Yamal LNG project (advising on both the terms of their shipbuilding contracts with the proposed yard, and also the charter term with Yamal).

USA

USA

Long term LNG charters
Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

Acting for Owners of two LNG shuttle and re-gasification vessels in London arbitration concerning $50 million+ performance claims under long term time charters.

Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

Australia

Australia

Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

 

Nigeria

Nigeria

Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

Japan

Japan

Advising on numerous disputes concerning LNG charter operations including disputes concerning boil-off consumption warranties, LNG cargo contamination, LNG lost as boil-off during off hire, loss of boil-off gas due to venting, shortage claims, OPEX disputes, claims concerning operation of reliquifaction equipment and termination of long term LNG charters.
 

Norway

Norway

Advising on numerous disputes concerning LNG charter operations including disputes concerning boil-off consumption warranties, LNG cargo contamination, LNG lost as boil-off during off hire, loss of boil-off gas due to venting, shortage claims, OPEX disputes, claims concerning operation of reliquifaction equipment and termination of long term LNG charters.

Gulf of Mexico

Gulf of Mexico

Advising on the first ever offshore regasification project, drafting terms for numerous LNG FSRU projects and advising on performance warranties, compliance with local regulations, and advising on related modification, JV and management contracts. 

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

Advising on the liability and insurance arrangements for a FSRU project.

Cameroon

Cameroon

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 
 

Indonesia

Indonesia

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico.

Mozambique

Mozambique

Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

Advising a main contractor on an EPIC contract for an FLNG project offshore Mozambique. 

Italy

Italy

Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

Spain

Spain

Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

India

India

Drafting of charter for LNG FSU project (2019).

Equatorial Guinea

Equatorial Guinea

Various advice on proposed FLNG project (2016-2017).

Bangladesh

Bangladesh

Advice to national oil company on FSRU conversion contract and related Charter (2018).

Ghana

Ghana

Advice to EPC contractor on FSRU (barge plus LNG FSU) for power plant project (2017).

South Korea

South Korea

Assisted clients in a shipbuilding dispute involving two LNG newbuildings that have been found to have serious latent defects in the cargo containment system during her voyage to load port, compromising the vessel’s ability to safely carry LNG cargo. Given the vessels’ inability to carry cargo, which have both entered into long term charterparties, advised on clients on ways to minimise any loss that may arise from the latent defect in both vessels, including pursuing the shipbuilders under the relevant shipbuilding contracts and advised on possible claims under various insurance policies.

Reviewed draft MoU concerning the delivery of Small Scale FSRU (10K x 3 and 24K x 1) and provided client with detailed legal analysis on every clause.   
 

United Kingdom

United Kingdom

Assisted clients in a shipbuilding dispute involving two LNG newbuildings that have been found to have serious latent defects in the cargo containment system during her voyage to load port, compromising the vessel’s ability to safely carry LNG cargo. Given the vessels’ inability to carry cargo, which have both entered into long term charterparties, advised on clients on ways to minimise any loss that may arise from the latent defect in both vessels, including pursuing the shipbuilders under the relevant shipbuilding contracts and advised on possible claims under various insurance policies.

Reviewed draft MoU concerning the delivery of Small Scale FSRU (10K x 3 and 24K x 1) and provided client with detailed legal analysis on every clause.

Regular ad hoc advice to leading IG Clubs and their members in relation to LNG related issues.

Singapore

Singapore

Advising on the contract (including liability and insurance clauses) for a project to convert an LNG vessel into a FSRU.

Russia

Russia

Advised a lead LNG shipowner bidding on the Yamal LNG project (advising on both the terms of their shipbuilding contracts with the proposed yard, and also the charter terms with Yamal).

Canada

Canada

Advising a new start-up in relation to an LNG bunkering barge.

Greece

Greece

Regular ad hoc advice to leading IG Clubs and their members in relation to LNG related issues.

  • Australia

    Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

     

    Close
  • Bangladesh

    Advice to national oil company on FSRU conversion contract and related Charter (2018).

    Close
  • Cameroon

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 
     

    Close
  • Canada

    Advising a new start-up in relation to an LNG bunkering barge.

    Close
  • Equatorial Guinea

    Various advice on proposed FLNG project (2016-2017).

    Close
  • Ghana

    Advice to EPC contractor on FSRU (barge plus LNG FSU) for power plant project (2017).

    Close
  • Greece

    Regular ad hoc advice to leading IG Clubs and their members in relation to LNG related issues.

    Close
  • Gulf of Mexico

    Advising on the first ever offshore regasification project, drafting terms for numerous LNG FSRU projects and advising on performance warranties, compliance with local regulations, and advising on related modification, JV and management contracts. 

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

    Advising on the liability and insurance arrangements for a FSRU project.

    Close
  • India

    Drafting of charter for LNG FSU project (2019).

    Close
  • Indonesia

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico.

    Close
  • Italy

    Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

    Close
  • Japan

    Advising on numerous disputes concerning LNG charter operations including disputes concerning boil-off consumption warranties, LNG cargo contamination, LNG lost as boil-off during off hire, loss of boil-off gas due to venting, shortage claims, OPEX disputes, claims concerning operation of reliquifaction equipment and termination of long term LNG charters.
     

    Close
  • Mozambique

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

    Advising a main contractor on an EPIC contract for an FLNG project offshore Mozambique. 

    Close
  • Nigeria

    Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

    Advising on a number of planned floating LNG production projects, both FLNG and FLSO, including West Africa, Australia, Indonesia, Mozambique and Gulf of Mexico. 

    Close
  • Norway

    Advising on numerous disputes concerning LNG charter operations including disputes concerning boil-off consumption warranties, LNG cargo contamination, LNG lost as boil-off during off hire, loss of boil-off gas due to venting, shortage claims, OPEX disputes, claims concerning operation of reliquifaction equipment and termination of long term LNG charters.

    Close
  • Qatar

    Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.
     

    Close
  • Russia

    Advised a lead LNG shipowner bidding on the Yamal LNG project (advising on both the terms of their shipbuilding contracts with the proposed yard, and also the charter terms with Yamal).

    Close
  • Russia

    Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

    Advised a lead LNG shipowner bidding on the Yamal LNG project (advising on both the terms of their shipbuilding contracts with the proposed yard, and also the charter term with Yamal).

    Close
  • Singapore

    Advising on the contract (including liability and insurance clauses) for a project to convert an LNG vessel into a FSRU.

    Close
  • South Korea

    Assisted clients in a shipbuilding dispute involving two LNG newbuildings that have been found to have serious latent defects in the cargo containment system during her voyage to load port, compromising the vessel’s ability to safely carry LNG cargo. Given the vessels’ inability to carry cargo, which have both entered into long term charterparties, advised on clients on ways to minimise any loss that may arise from the latent defect in both vessels, including pursuing the shipbuilders under the relevant shipbuilding contracts and advised on possible claims under various insurance policies.

    Reviewed draft MoU concerning the delivery of Small Scale FSRU (10K x 3 and 24K x 1) and provided client with detailed legal analysis on every clause.   
     

    Close
  • Spain

    Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

    Close
  • United Kingdom

    Assisted clients in a shipbuilding dispute involving two LNG newbuildings that have been found to have serious latent defects in the cargo containment system during her voyage to load port, compromising the vessel’s ability to safely carry LNG cargo. Given the vessels’ inability to carry cargo, which have both entered into long term charterparties, advised on clients on ways to minimise any loss that may arise from the latent defect in both vessels, including pursuing the shipbuilders under the relevant shipbuilding contracts and advised on possible claims under various insurance policies.

    Reviewed draft MoU concerning the delivery of Small Scale FSRU (10K x 3 and 24K x 1) and provided client with detailed legal analysis on every clause.

    Regular ad hoc advice to leading IG Clubs and their members in relation to LNG related issues.

    Close
  • USA

    Long term LNG charters
    Negotiating 20-year and medium term charters for new LNG projects including operations out of Qatar, Yamal, USA, Australia and West Africa, including back-to-back new building terms, JV agreements, related ship management contracts and advice on bidding documents.

    Acting for Owners of two LNG shuttle and re-gasification vessels in London arbitration concerning $50 million+ performance claims under long term time charters.

    Advice to major utility company on LNG shipping arrangements, including drafting of multi-vessel tender documents and advice on structuring in light of IFRS 16 lease accounting rules (2016-2017).

    Close
Contact
Contact

For more information, please contact us on

 
 
[email protected]