Baker Botts has one of the world's most active and extensive LNG practices. We have worked on over twenty LNG deals in the last two years alone and on over sixty LNG deals over the past few years. This extensive and very recent experience demonstrates our activity, and we are on the leading edge of the ever-present changes in the marketplace. However, we are far from newcomers to LNG projects.
The firm's involvement with LNG began in the early 1970s through our representation of Roy M. Huffington, Inc., in the development of the successful Bontang LNG Project in East Kalimantan, Indonesia. At about the same time, we became involved in Tenneco's efforts to develop LNG projects in Algeria, Nigeria, Trinidad and Russia, and soon thereafter began representing Cabot LNG in connection with LNG sales and purchase agreements and transportation agreements involving LNG in Algeria and receiving facilities in Boston, Puerto Rico and elsewhere. Building on that experience, our LNG practice has expanded to include projects in other locations around the world such as the Bahamas, Brazil, Mexico, Equatorial Guinea, Nigeria, Peru, Qatar, Russia, Venezuela and onshore and offshore of the United States.
Our experience covers every link in the LNG value chain – from upstream production matters through midstream processing and pipeline activities to downstream. Our clients in the LNG industry include producers, liquefaction plant owners, LNG receiving and regasification terminal operators, offtake pipeline operators, buyers, sellers, transporters, investors and lenders around the globe.
In addition to project development involvement at each level of the LNG value chain Baker Botts lawyers have substantial experience in maritime, shipping and transportation matters, including the construction, operation and financing of ships, drilling rigs, drillships, floating production storage and off-loading systems (FPSOs), LNG tankers (including moored floating storage and regasification units (FSRUs) and trading shuttle regasification vessels (SRVs)), seismic vessels and various other vessels used throughout the world, including the related maritime and admiralty issues.
Recently, our lawyers have represented developers of seven LNG projects (in Asia, Africa, the Middle East, North America and South America) in structuring the LNG shipping for more than 70 LNG tankers (including FSRUs, SRVs and Q-Flex/Q-Max vessels equipped with onboard reliquefaction), with a combined capital cost in excess of $17 billion.
The firm is also helping U.S. projects obtain regulatory approvals from the Federal Energy Regulatory Commission (onshore projects) and the U.S. Coast Guard (offshore projects), including compliance with the requirements of the National Environmental Policy Act and of various federal and state regulatory agencies.
Our experience with every phase of an LNG project, coupled with the perspective gained from working on behalf of various project participants, enables us to provide our clients with a seamless approach to facilitate effective deal structures, coordinate all related agreements, and obtain financing along with regulatory and environmental approvals. We are able to provide prompt, efficient, cost-effective service to our LNG clients.
Examples of Matters and Projects
In the past couple of years alone, Baker Botts has represented clients in relation to the following LNG projects (including the negotiation of the SPAs):
AES: Dominican Republic
AES: Honduras
Camisea LNG Project: Peru
Distrigas of Massachusetts: U.S.A.
EG LNG Project: Equatorial Guinea
Elba Island: U.S.A.
Distrigas of Massachusetts: U.S.A.
- Gazprom Marketing & Trading Ltd: Sakhalin II Project, Russia
- Ocean Express Project: Bahamas and U.S.A.
- Petrobas: Brazil and international
Qatargas 3 Project: U.S.A. and Qatar
Tangguh LNG Project: Indonesia, the People's Republic of China and Mexico
Weavers Cove Project: U.S.A.
Examples of Agreements
Baker Botts' know-how extends to all facets of an LNG project, including the corporate, tax, contractual and finance structuring of a project; environmental and other regulatory approvals; and drafting and negotiating all associated agreements, such as: