The LNG sector has become one of the most significant testing grounds for force majeure (“FM”) provisions over the last decade.
A combination of events, including the COVID-19 pandemic, sanctions against Russia and others, supply chain disruption, and energy security concerns following the invasion of Ukraine, have combined to generate an unprecedented number of FM notices, arbitrations and court decisions.
While relatively few LNG disputes have resulted in publicly reported judgments (many being resolved confidentially), the sector has nonetheless materially influenced how force majeure clauses are drafted, interpreted and eventually litigated under English law.
Traditional principles of Force Majeure