05.07.2009

The process by which the buyer informs the seller of how much LNG it intends to take in a coming Contract Year under a long term supply contract. Typically, in LNG, nomination schedules work as follows: At least 90 days before a new Contract Year, both parties will seek to agree a program containing (a) buyer’s binding nominations for cargoes for each calendar month in the coming Contract Year (b) indicative nominations from buyer for cargoes likely to be required in each calendar month of the following two years, (c) shutdowns and maintenance planned for buyer’s LNG facilities in the coming Contract Year (d) shutdowns and maintenance planned for seller’s LNG facilities in the coming Contract Year. LNG delivery schedules may typically only be changed by mutual consent after being agreed. If a delivery schedule cannot be agreed within the timeframe laid out in the nomination section of a long term contract, a final delivery program is often set by the buyer, after taking account of seller’s available cargoes.

Gina Cohen
Natural Gas Expert
Phone:
972-54-4203480
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