Trafigura proposes standard LNG sale and purchase contract
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.”