Trafigura Group, one of the world’s largest commodity trading companies, called for the adoption of a standard master sale and purchase agreement (MSPA) for the LNG industry.
“LNG, unlike other commodities, currently lacks standard terms and conditions which has created inefficiencies, a lack of transparency and barriers to new entrants that would help increase liquidity in the industry,” said Hadi Hallouche , head of LNG for Trafigura.
The trading house proposed the creation of a standard MSPA, hoping it will be a starting point for the creation of an industry standard master sale and purchase agreement in the future.
Speaking of the initiative, Satvinder Singh , assistant CEO for IE Singapore, said “this is important to enhance transparency in the sector as we are increasingly moving towards commoditisation of LNG.”