Force Majeure in Gas Chain Contracts

Abstract

This article examines the concept of force majeure and its impact on chain contracts, particularly within the natural gas industry and contracts related to LNG. Chain contracts, characterized by complex structures and interdependence, are considered key instruments in managing large-scale international projects. In such contracts, the occurrence of a force majeure event in one part of the chain can lead to disruptions across the entire contractual structure. This article not only provides a precise legal explanation of force majeure and distinguishes it from hardship, but also proposes a new concept entitled “legal force majeure,” referring to the indirect effects of unforeseen events on dependent contracts. Additionally, it analyzes proposed risk management strategies, the anticipation of relevant insurance provisions, and the necessity of a clear and comprehensive definition of force majeure within contracts.