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
13 March 2025
Government awards €1.21b of funding to seven large-scale projects as it chases capacity target of 12GW by 2030
12 March 2025
Speakers at this year’s CERAWeek conference noted the growing interest in green hydrogen, but hurdles such as cost remain to its adoption at scale
11 March 2025
A reassessment of clean hydrogen’s growth trajectory is underway, but the energy vector’s long-term potential to decarbonise remains intact
10 March 2025
Collaboration has become crucial to success as projects turn out to be more complex and expensive than previously thought, industry figures tell Dubai conference