The Business Times
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Force majeure is new 'abracadabra' amid Covid-19

But lawyers warn that it is not a 'get out of jail free' card for energy players, despite low prices and soft demand

Annabeth Leow

Annabeth Leow

Published Sun, Mar 1, 2020 · 09:50 PM

    Singapore

    "FORCE majeure" has become a new watchword, with energy supply chain players scrambling to weigh their legal options as Chinese buyers get leery of prior purchase commitments, in the fallout from Covid-19.

    Weaker demand for products like oil and liquefied natural gas (LNG) has prompted some buyers to try to back out of what they had planned to purchase under long-term, fixed-volume contracts. China National Offshore Oil Corp declared force majeure on LNG deliveries from multiple suppliers, Reuters reported last month.

    OilTradeCovid-19

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