B. Change of circumstances (frustration of purpose)
In a nutshell, the arbitral tribunal’s finding on the change of circumstances or…
- Shale gas revolution brought about an unprecedented, structural and permanent change in the U.S. natural gas market, eliminating the need for LNG imports.…
“174. For the purpose of assessing the issue of “substantial frustration,” the question…
175. For the reasons mentioned below, the Tribunal is of the opinion that the shale…
With regard to the permanent character of the change considering environmental and regulatory challenges including the likelihood of acts banning fracking in…
- Shale gas revolution not a mere market change the like of which have affected the U.S. natural gas market in the past. The…
“176. The Tribunal is of the opinion that the shale gas revolution is not a mere…
The arbitral tribunal considered that the parties agreed on the TUA due to a longstanding…
- Shale gas revolution eliminated the need for LNG imports and, hence, for the actual [not optional] use of the Facility for the entire term of the TUA; no “take-or-pay” contract. The…
“145. The Tribunal is of the opinion that the principal purpose of the TUA is the…
146. First, it is obvious that the explicit terms of the TUA (i.e. the recitals and…
147. Nowhere within the provisions of the TUA did the parties explicitly contemplate…
148. Second, both Parties understood and expected at the time of the execution of…
154. Respondent also correctly points out that the TUA fixes certain fees which are…
155. Similarly, the fixed nature of some of the fees incumbent upon Claimant does…
156. Upon review of the authorities presented by the Parties, the Tribunal is of…
157. For the same reasons, the existence of a “make-up-right” is essential to Respondent’s…
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