GAS PRICE REVIEW CLAUSE IN TAKING OR PAYING CONTRACTS AND DISPUTE SETTLEMENT ARISING OUT OF THAT

Take- or- Pay is a kind of long-term contract for purchase and sale of natural or liquid gas. Parties in the contracts are usually faced with some problems such as economical imbalance of contract and the impossibility of its implementation by the parties. So far, there are many specific solutions for the problem. One of the solutions is makes pricing of the contract through a pricing formula independent of oil price. This has been considered as the way of exiting this deadlock. To predict the price review clause at the time of signing the contract (as the Exit Clause) is the best example for solution of these problems. Checking out the reasons leading to price changes and the price review clause are going to modify the price to avoid potential disagreements during negotiations. The arbitration arising from this clause are the important topics discussed in this essay.