The Gas Sale Agreement is a crucial commercial contract used in Hong Kong's energy sector for establishing long-term gas supply arrangements. This document is essential when parties seek to create a binding framework for the sale and purchase of gas, whether for industrial use, power generation, or commercial distribution. The agreement must comply with Hong Kong's regulatory framework, particularly the Gas Safety Ordinance and related regulations, while addressing commercial aspects such as pricing mechanisms, delivery terms, and quality specifications. It's particularly relevant in Hong Kong's evolving energy landscape, where gas plays an increasingly important role in the transition to cleaner energy sources. The document typically includes detailed technical specifications, measurement procedures, and operational protocols, along with provisions for supply security and force majeure events tailored to Hong Kong's legal and business environment.
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1. Parties: Identification of the seller and buyer, including full legal names and registered addresses
2. Background: Context of the agreement, including brief description of parties' business and purpose of the agreement
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of gas, including take-or-pay provisions if applicable
5. Quantity: Specified quantities of gas to be delivered, including daily contract quantity (DCQ) and annual contract quantity (ACQ)
6. Quality Specifications: Detailed specifications of gas quality requirements and testing procedures
7. Delivery Point and Title: Specification of delivery point(s) and transfer of title and risk
8. Term: Duration of the agreement, including commencement date and conditions for extension
9. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures
10. Measurement: Methods and procedures for measuring gas quantity and quality
11. Operating Procedures: Day-to-day operational procedures including nominations and scheduling
12. Force Majeure: Definition of force majeure events and consequences
13. Liability and Indemnity: Allocation of risks and responsibilities between parties
14. Termination: Grounds for termination and consequences
15. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms
1. Transportation: Required if seller is responsible for gas transportation to delivery point
2. Minimum Take Obligations: Include if buyer must take minimum quantities or pay regardless
3. Make-up Gas: Include if there are provisions for taking previously paid-for but undelivered gas
4. Capacity Reservation: Required if specific capacity needs to be reserved in transportation system
5. Environmental Compliance: Include if specific environmental obligations need to be addressed
6. Security: Include if payment security or performance bonds are required
7. Anti-corruption: Include for international deals or when required by corporate policy
8. Change in Law: Include if regulatory changes could significantly impact the agreement
1. Technical Specifications: Detailed technical specifications of gas quality and measurement
2. Pricing Formula: Detailed pricing calculations and adjustment mechanisms
3. Delivery Points: Technical description and diagrams of delivery points
4. Testing Procedures: Detailed procedures for testing gas quality
5. Nomination Procedures: Detailed procedures for gas nomination and scheduling
6. Contact Details: List of key contacts and authorized representatives
7. Form of Payment Security: Standard form of any required payment security
8. Operating Procedures Manual: Detailed operational procedures and requirements
Relevant legal definitions
Clauses
Relevant Industries
Energy
Utilities
Oil & Gas
Manufacturing
Industrial Processing
Power Generation
Chemical Industry
Infrastructure
Transportation
Commercial Real Estate
Relevant Teams
Legal
Commercial
Operations
Supply Chain
Risk Management
Compliance
Technical
Business Development
Energy Trading
Procurement
Finance
Regulatory Affairs
Project Management
Relevant Roles
Energy Trading Manager
Commercial Director
Legal Counsel
Contract Manager
Operations Manager
Supply Chain Manager
Risk Manager
Compliance Officer
Technical Manager
Business Development Director
Energy Procurement Manager
Chief Commercial Officer
Regulatory Affairs Manager
Project Manager
Finance Director
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