Force Majeure in Gas Chain Contracts

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Haji Ali Khamseh Nader; Babajanian Bahman

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Journal Paper

Paper Information

Journal: Encyclopedia of Comparative Jurisprudence and Law Year:2025 | Volume:3 | Issue:1 Page(s): 1-17

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Information Journal Paper

Title

Force Majeure in Gas Chain Contracts

Author(s)

Haji Ali Khamseh Nader | Babajanian Bahman | Issue Writer Certificate

Keywords

Force Majeure

Hardship

Chain contracts

Gas industry contracts

LNG sales contracts

Arbitration

Insurance

Abstract

This article examines the concept of Force Majeure and its impact on Chain contracts, particularly within the natural gas industry and contracts related to LNG. Chain contracts, characterized by complex structures and interdependence, are considered key instruments in managing large-scale international projects. In such contracts, the occurrence of a Force Majeure event in one part of the chain can lead to disruptions across the entire contractual structure. This article not only provides a precise legal explanation of Force Majeure and distinguishes it from Hardship, but also proposes a new concept entitled “legal Force Majeure,” referring to the indirect effects of unforeseen events on dependent contracts. Additionally, it analyzes proposed risk management strategies, the anticipation of relevant Insurance provisions, and the necessity of a clear and comprehensive definition of Force Majeure within contracts.

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