« We spent a lot of time at Sempra thinking about this transition [away from the toll model], » he said. In the context of the development of the annual delivery schedule and the ninety-day schedule, the project participants must also approve the conditions for allowing or redeveloping, within a framework, changes to the annual delivery program and the procedure for allocating excess lifting operations. The cooperation and agreement of all project participants is essential for this planning process. It is essential that the provisions on the repeal and planning of conditions and procedures (including port use agreements or conditions of use), the measurement method and the allocation of LNG and other by-products are uniform for all toll customers under the same project. Clear and non-discriminatory allocation procedures and measurement principles to accurately determine the right of each toll customer to support LNG and by-products are important not only for project participants, but also for financiers. Allocation procedures and measurement methods should apply equally to all toll customers and be verifiable by all toll customers using LNG liquefaction facilities. Disputes concerning these provisions are generally subject to expert decision. For liability to the toll, the agreement serves as a physical hedge of assets to cover electricity trading positions. At the same time, commercial investments can be used to extract the « volatility value » or upward trend that could be present in volatile gas and electricity markets, Feldman said.
Toll agreements are complex and critical elements of the LNG project structure. As part of the toll and cancellation agreement, the mechanism for allocating LNG to project participants and monetizing their gas claims. The continuity of toll agreements between different toll parties that use common or common facilities is an essential element in structuring the toll part of an LNG project. The structuring phase is crucial and decisions taken at an early stage will guide negotiations and promote the documentation approach. ORLANDO-As gas prices rise and electricity prices rise, more and more companies are turning to toll agreements to finance and share the risk of building new commercial power plants, Dealmaker says. The annual LNG supply programme should be developed on the basis of information provided by all parties to the toll and implemented without discrimination. Through the annual delivery programme, toll parties have the effect of delivering their LNG and by-products to third parties, thereby monetising their gas rights. All project participants collect information annually on planned facility maintenance and closures, gas supply expectations and other relevant planned events that will have or influence the evolution of the delivery programme. The annual delivery schedule is usually refined each month when the ninety-day schedule is developed. This schedule reflects changes to the annual delivery schedule and defines the lifting plan.
The development of the annual delivery program is usually fluid and involves cooperation between project participants. The fee structure of a third-party toll contract is generally aimed at obtaining a return on supply, as the toll company takes a limited risk. the pricing interaction is determined by (i) investments in facility construction, operating costs and a fair profit margin for investors who take the project risk; and (ii) the evolution of market price discussions with LNG buyers who, in some cases, hope to decouple oil-based indices from gas-based indices. Market pricing should not be a point of discussion in this paper, except to note that price discussions and decisions will certainly play a role in the viability of many of the proposed projects in North America. . . .