Force majeure is new 'abracadabra' amid Covid-19

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.