BP has become the first major oil and gas business to publish its free-on-board master sale and purchase agreement template for LNG transactions (BP FOB MSA).
The BP FOB MSA allows either party to buy or sell physical LNG cargoes on a free-on-board basis, BP said in its statement.
As a major LNG portfolio player, BP has developed the FOB MSA to be both a balanced and fair transaction route between buyers and sellers, the statement reads.
It follows BP’s publication of its delivered ex-ship master sale and purchase agreement (DES MSA) template for LNG transactions in April 2019. BP DES LNG MSA allows either party to buy or sell physical LNG cargoes on a delivered ex-ship basis.
Both publications are aimed at informing the broader discussion around standardization and liquidity in LNG markets.
Jonty Shepard, Head of LNG for BP Supply and Trading, said, “BP publishing the DES MSA helped simplify industry processes. We hope the publication of the FOB MSA will build on that momentum as the LNG industry looks for opportunities to drive greater standardization.”