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McKool Smith principal Willie Wood was quoted in the Reorg News published article "Force Majeure Provides Questionable Relief for LNG Buyers as Covid-19 Pandemic" article. Because of the damped demand in gas and low prices due to the COVID-19 lockdown, liquified natural gas buyers with existing long-term contracts for previously committed cargo shipments are increasingly looking for opportunities to relieve themselves from the obligations that were part of an existing long-term contract. However, Willie explained, “if it’s simply an economic issue [such as low prices], the force majeure and take-or-pay provisions in LNG contracts will likely not prevent the buyer from paying for the shipment due to force majeure. It’s more difficult [for the buyers] because of these take-or-pay provisions in many LNG contracts that mandate them to pay for their shipment, even if they are not able to take the shipment as they would in routine circumstances.”  Read the article here.


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