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Posts from the ‘NAESB Master Agreement’ Category


Understanding NAESB Master Agreement for Natural Gas and NGLs

The U.S. natural gas market is experiencing an unprecedented transformation.  With the technological advancements in shale exploration, combined with increasing exports of natural gas, natural gas liquids (“NGL”) and liquified natural gas (“LNG”), the volumes of natural gas traded in the physical and financial markets are significantly increasing.  LNG expansion is increasing the global participation in the U.S. natural gas markets, including the number of market participants with different financial and operational capabilities.  This, in turn, is increasing the importance of properly identifying, quantifying, and managing the legal, regulatory, operational, and financial risk associated with natural gas marketing.

The NAESB master agreement for purchase and sale of natural gas and NGL is the most frequently used umbrella agreement in the natural gas industry.  Market participants across the natural gas marketing chain such as natural gas producers, gathering and processing companies, pipelines, power and gas utilities, and various commercial and industrial end users rely on the NAESB to memorialize their purchases, sales, and exchanges of natural gas and NGLs.  In order to properly manage exposures using the NAESB master agreement, market participants need to understand the relevant legal, credit, and operational aspects of the natural gas business.

I am pleased to announce that I will be conducting an in-depth and practical analysis of the NAESB master agreement, overview of the most critical special provisions, transaction confirmations, and credit support issues relevant to successfully drafting and negotiating NAESB documentation on October 4-5, 2018 in Houston.

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