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
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Annabeth Leow
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.
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