The Enron Case

Issue 1 Summer 2007

Upstream oil and gas debt financings

Huw Thomas

Supply options and challenges for the gashungry Indian market

Anthony Patten

PPAs and PWPAs

David Wadham

New markets for Asian LNG

Ashley Wright

Are your best endeavours always reasonable?

Ruth Jaun

An overview of this issue

the twin demands of economic expansion and population growth. Many countries are turning to the private sector to build the new capacity required and there are increasing opportunities for private sector sponsors and lenders to invest in independent power projects. In the Middle East, power plants often incorporate seawater desalination plants as this is a particularly efficient thermal process. Starting in this edition of EnergySource, we examine in the first of a two-part article, some of the main issues which sponsors and lenders need to consider when reviewing the key contracts underpinning these projects, namely the Power Purchase Agreement and the Power and Water Purchase Agreement. The US is becoming increasingly attractive for marketing Asian LNG. The opening-up of this relatively new market has resulted in the evolution of the more traditional form of LNG contract so as to respond to the commercial realities which the US market entails. This edition of EnergySource discusses the factors contributing to the changing LNG commercial world and highlights some key areas for consideration in the context of the sale of LNG into the US market. Finally, the obligation to use “reasonable” or “best” endeavours, which is commonly included in many energy contracts, has recently been considered by the High Court in the case of Rhodia International Holdings Limited and Rhodia UK Limited -v- Huntsman International LLC. In this edition of EnergySource, we consider the case and its message for parties faced with the question of whether to give or accept such obligations. I hope that you find EnergySource useful and enjoy reading this first issue. Geoffrey Picton-Turbervill Head...