Eversheds Sutherland attorneys are at the forefront of the shift toward liquefied petroleum gas (LPG)-based power generation solutions.
Eversheds Sutherland’s broad-based energy practice, staffed by approximately 70 attorneys, serves the project development, acquisition and divestiture, fuel supply, and shipping needs of a wide range of energy industry participants. As lead counsel on major LPG infrastructure projects, we work closely with engineers and consultants beginning with project design and risk allocation measures during the competitive solicitation process. We advise our clients through project completion, negotiating and finalizing project documents, including design-build-own-operate-transfer (DBOOT) and financing arrangements for LPG terminals, port infrastructure, dock modifications, maritime and container shipping arrangements (including ship-to-ship transfer and lightering issues), pipelines, trucking solutions, vaporizer units, and repowering arrangements with major combustion turbine manufacturers.
Why Eversheds Sutherland
Transactional experience. Our market-leading international gas and petrochemicals practice includes attorneys who have extensive knowledge of LPG issues and serve as lead counsel on both the supplier side and the project side of cutting-edge infrastructure projects.
Industry knowledge. Eversheds Sutherland has been a leader in catering to the needs of the gas and petrochemicals industries for more than 30 years, and we serve clients that are active in all aspects of the supply chain, from producers to end users. In addition to our LPG practice, Eversheds Sutherland attorneys are experienced in liquefied natural gas (LNG) and compressed natural gas (CNG) projects, which allows us to bring a multifaceted, comparative approach to each LPG matter.
Multidisciplinary approach. We work in tandem with our environmental, tax, real estate, regulatory and other subject-matter attorneys to bring the appropriate resources to each LPG matter.
Nuts and Bolts
Eversheds Sutherland’s LPG team is well-versed in the complex legal and commercial nuances that accompany LPG projects, such as:
- Minimum fuel inventory requirements
- Transportation and logistics issues
- Design variances (such as whether the incumbent power generation is capable of supplying a heat source for vaporization in lieu of a higher-cost operations and maintenance rate for the provision of utilities)
- Coordination between achieving commercial operation of the LPG delivery infrastructure and completing repowering of the turbines (for propane testing and commissioning)
- Risk-adjusted pricing and take-or-pay obligations
- Financial and tax structuring
- Compliance with local and national regulations
- Allocation of risks among project participants (power generator, supplier, infrastructure developer, conversion contractor, and other stakeholders)
- Liquidated damages for failure to deliver nominated LPG or to maintain minimum on-site storage
- Project flexibility (for potential future expansions or conversion to LNG)
- Transfer of custody and risk of loss between the supplier and the power generator
- Scope of conversion and infrastructure warranties
- Arrangements for the use of necessary utilities by project developers
- Treatment of force majeure
- Credit support matters
As power producers increasingly look to shift away from legacy fuels and toward LPG solutions, Eversheds Sutherland’s LPG team stands ready to provide the full complement of legal services to best serve our clients’ business interests.