Gas Sale Agreement Template for Hong Kong

The Gas Sale Agreement is a crucial commercial contract used in Hong Kong's energy sector for establishing long-term gas supply arrangements. This document is essential when parties seek to create a binding framework for the sale and purchase of gas, whether for industrial use, power generation, or commercial distribution. The agreement must comply with Hong Kong's regulatory framework, particularly the Gas Safety Ordinance and related regulations, while addressing commercial aspects such as pricing mechanisms, delivery terms, and quality specifications. It's particularly relevant in Hong Kong's evolving energy landscape, where gas plays an increasingly important role in the transition to cleaner energy sources. The document typically includes detailed technical specifications, measurement procedures, and operational protocols, along with provisions for supply security and force majeure events tailored to Hong Kong's legal and business environment.

1. Parties: Identification of the seller and buyer, including full legal names and registered addresses

2. Background: Context of the agreement, including brief description of parties' business and purpose of the agreement

3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement

4. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of gas, including take-or-pay provisions if applicable

5. Quantity: Specified quantities of gas to be delivered, including daily contract quantity (DCQ) and annual contract quantity (ACQ)

6. Quality Specifications: Detailed specifications of gas quality requirements and testing procedures

7. Delivery Point and Title: Specification of delivery point(s) and transfer of title and risk

8. Term: Duration of the agreement, including commencement date and conditions for extension

9. Price and Payment: Pricing mechanism, payment terms, invoicing, and dispute procedures

10. Measurement: Methods and procedures for measuring gas quantity and quality

11. Operating Procedures: Day-to-day operational procedures including nominations and scheduling

12. Force Majeure: Definition of force majeure events and consequences

13. Liability and Indemnity: Allocation of risks and responsibilities between parties

14. Termination: Grounds for termination and consequences

15. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms