A Gas Sale Agreement is a fundamental document in the UAE's energy sector, used to formalize the commercial relationship between sellers and buyers of natural gas. This agreement is particularly important given the UAE's position as a major gas producer and its growing domestic gas market. The document is structured to comply with UAE federal laws and emirate-level regulations, particularly those of Abu Dhabi where most gas operations are concentrated. It includes comprehensive provisions covering commercial, technical, and operational aspects of gas sales, including quality specifications, delivery commitments, pricing mechanisms, and measurement procedures. The agreement is essential for various transactions, from domestic industrial supply to power generation, and must account for local regulatory requirements, including those set by the Supreme Petroleum Council and ADNOC.
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Key Requirements PROMPT example:
Gas Sale Agreement
"I need a Gas Sale Agreement for supplying natural gas from our UAE production facility to a power generation company in Abu Dhabi, with delivery starting March 2025 and including take-or-pay provisions for minimum annual quantities of 100 million standard cubic meters."
1. Parties: Identification of the seller and buyer, including full legal names and addresses
2. Background: Context of the agreement, including seller's right to sell gas and buyer's intention to purchase
3. Definitions and Interpretation: Definitions of technical and legal terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligations including quantities, take-or-pay provisions, and delivery commitments
5. Term and Termination: Duration of the agreement and circumstances for early termination
6. Gas Specification: Required quality specifications and components of the gas to be delivered
7. Delivery Point and Title: Specified location where title and risk transfer from seller to buyer
8. Measurement and Testing: Procedures for measuring quantity and quality of gas delivered
9. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures
10. Operational Requirements: Daily nominations, scheduling, and operational communication procedures
11. Seller's and Buyer's Warranties: Representations and warranties from both parties
12. Force Majeure: Definition and consequences of force majeure events
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Confidentiality: Obligations regarding confidential information
15. Governing Law and Dispute Resolution: Choice of UAE law and dispute resolution mechanisms
16. General Provisions: Standard legal provisions including notices, amendments, and assignment
1. Transportation: Required if seller is responsible for gas transportation beyond delivery point
2. Credit Support: Include when buyer's creditworthiness requires additional security
3. Carbon Credits and Environmental Attributes: Required for agreements involving environmental credits or obligations
4. Export/Import Requirements: Necessary for international gas sales
5. Gas Storage: Include if agreement involves storage facilities
6. Commissioning: Required for new facilities or connection points
7. Change in Law: Detailed provisions for managing regulatory changes in UAE energy sector
1. Schedule 1 - Gas Specification: Detailed technical specifications of gas quality parameters
2. Schedule 2 - Measurement Procedures: Detailed procedures for gas measurement and testing
3. Schedule 3 - Delivery Point Specifications: Technical details and drawings of delivery point facilities
4. Schedule 4 - Price Calculation: Detailed pricing formula and adjustment mechanisms
5. Schedule 5 - Nomination Procedures: Detailed procedures for daily/weekly gas nominations
6. Schedule 6 - Contact Details: List of authorized representatives and contact information
7. Schedule 7 - Form of Bank Guarantee: Standard form for any required bank guarantees
8. Schedule 8 - Technical Operations Manual: Detailed operational procedures and requirements
9. Appendix A - Pipeline Specifications: Technical specifications of connecting pipelines
10. Appendix B - SCADA Systems: Details of monitoring and control systems
Authors
Relevant legal definitions
Clauses
Relevant Industries
Oil & Gas
Energy
Utilities
Industrial Manufacturing
Power Generation
Petrochemicals
Infrastructure
Natural Resources
Heavy Industry
Trading & Distribution
Relevant Teams
Legal
Commercial
Operations
Business Development
Technical
Risk Management
Compliance
Procurement
Regulatory Affairs
Finance
Engineering
Quality Control
Project Management
Relevant Roles
Commercial Director
Energy Trading Manager
Gas Operations Manager
Legal Counsel
Contract Administrator
Business Development Manager
Technical Operations Director
Risk Manager
Compliance Officer
Energy Procurement Manager
Chief Commercial Officer
Supply Chain Manager
Project Director
Regulatory Affairs Manager
Operations Engineer
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