Sales and Purchase Agreements
Brass LNG will negotiate and implement long-term Sales and Purchase Agreements (SPA) to create the greatest returns for our Shareholders while reducing commercial risk.
Our primary market will be the Atlantic Basin (North America and Europe), where we intend to become a key LNG competitor.
Here is a summary of our Marketing & Commercial Process:
Head of Terms (HOT)
The HOT process started in December 2004, just after FEED was awarded to Bechtel.
HOT provides the basis for development of subsequent contracts. Criteria for selecting participants included
- Credit rating
- Receiving terminal capabilities
- Pricing concept
Memoranda of Understanding (MOU)
In early 2006 we signed MOUs with BP, BG Group and Suez LNG Trading S.A., each for a 20-year period, as well as with other Buyers.
The Buyers named above have issued press releases announcing the sales. Other Buyers have decided not to issue press releases.
Sales and Purchase Agreements (SPAs)
We expect to sign SPAs with all of the Buyers who have signed an MOU.
Our SPAs will be developed in collaboration with internal and external legal, financial and commercial experts.