Hydrogen contracts to differ from LNG
Take-or-pay contracts and destination clauses will be hard to implement in hydrogen market
Hydrogen is likely to develop contracting structures that differ from the way LNG is traded today, according to industry experts. The LNG market is often cited as a template for the development of a global hydrogen trade. One of the hallmarks of long-term LNG contracting is a longstanding reliance on take-or-pay clauses, which have traditionally underpinned the development of multibillion-dollar export projects around the world. These contracts give sellers some guaranteed returns even if buyers do not follow through on purchasing agreed amounts of a commodity and were vital in de-risking projects in the early days of the LNG market. But while such contracts remain common in the LNG sector,

Also in this section
22 July 2025
The gas-hungry sector is set for rapid growth, and oil majors and some of the world’s largest LNG firms are investing in ammonia production and export facilities, though much depends on regulatory support
16 July 2025
Major manufacturer cancels rollout of new hydrogen-powered vans and strengthens focus on battery electric and hybrid markets
16 July 2025
Oil and gas major calls for expression of interest in product from Lingen project ahead of startup in 2027
14 July 2025
Danish electrolyser manufacturer decelerates pre-FID work on planned Virginia plant despite renewed clarity over 45V tax credit