Title: Fuel Supply Agreement (Example 1)
Languages: English
Published: January 1, 2003
Document(s):
Document Summary:
This section provides download link to sample Fuel Supply Agreement.
Document Details:
Sector:
Name of Agreement:
Model Fuel Supply Agreement
Type of Agreement:
Fuel Supply Agreement
Part of a suite of model documents comprising also:
Prepared in connection with sector reform as a sample agreement for a country in South East Asia.
Region (if known):
South East Asia
Year of Agreement/ Draft:
Annotated by:
Victoria Delmon/ Mark Moseley (LEGPS)
Purpose and Context:
Agreement sets out terms on which Fuel Supplier is to provide Fuel to the Delivery Point at the Facility. To be used in conjunction with a PPA.
Circumstances where this contract may be appropriate:
Main Features:
Fuel supplier to provide fuel to Delivery Point and the Facility (3). Title and risk pass at the Delivery Point (6).Independent Power Producer (IPP) Company to advise in advance a good faith best estimate for each year’s requirement for Fuel (7.1).
IPP Company obliged to take delivery of Fuel – to pay liquidated damages equal to [10]% of cost of Fuel not taken (7.6.2(b)).
Seller to pay liquidated damages to extent that Dependable Net Capacity is less than Rated Capacity (no cap on liquidated damages)(3.4)
IPP Company to pay for Fuel at price published by [ ] (13.1)Force Majeure (FM) (14) – Events which materially and adversely affect performance of party of its obligations, provided that such effect could not have been prevented by diligence and reasonable care.
FM events include non-performance by a counterparty relating to a Facility by reason of an event of event that could constitute FM under this Agreement (therefore important to ensure that the different FM provisions are similar in each agreement).
Consequences of FM – Affected Party excused from performance.Dispute resolution (17) - Resolution in good faith by parties. Other disputes, or where expert fails to make a determination, to Arbitration under [UNCITRAL] rules [the arbitration panels for all the contracts of the project should probably be the same].
Possible additional provisions that it might be appropriate to include:
Provisions that may not be advisable to replicate/ may need further thought:
Provisions of wider general use:
Experience Since Coming Into Force (including any amendments)/ if draft form, whether it has been applied:
Tracking Number:
Updated: August 23, 2021
