Gas Sales Agreement

Gas Sales Agreement Template for Denmark

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Document background

The Gas Sales Agreement is a crucial commercial contract used in the Danish energy market for establishing legally binding arrangements between gas suppliers and purchasers. This document is essential when parties wish to enter into a formal arrangement for the sale and purchase of natural gas, whether for industrial use, power generation, or resale purposes. The agreement must comply with Danish law, including the Danish Natural Gas Supply Act and relevant EU regulations, while addressing commercial aspects such as delivery obligations, quality requirements, pricing mechanisms, and operational procedures. It is particularly important in the context of Denmark's liberalized gas market and the country's transition towards renewable energy sources, including biogas integration.

Suggested Sections

1. Parties: Identification of seller and buyer with full legal details

2. Background: Context of the agreement including seller's right to sell gas and buyer's intention to purchase

3. Definitions: Comprehensive list of defined terms used throughout the agreement

4. Sale and Purchase Obligation: Core obligations of parties including commitment to sell/buy agreed quantities

5. Delivery Point: Specification of the point where title and risk transfer occurs

6. Quality and Pressure: Specifications for gas quality and delivery pressure requirements

7. Nomination and Allocation: Procedures for nominating gas quantities and allocation principles

8. Measurement: Methods and standards for measuring gas quantity and quality

9. Price and Payment: Price calculation methodology, invoicing, and payment terms

10. Credit Support: Requirements for financial security and credit requirements

11. Taxes and Fees: Treatment of applicable taxes, duties, and regulatory fees

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

13. Liability and Indemnification: Scope of liability and indemnification obligations

14. Term and Termination: Contract duration, renewal options, and termination rights

15. Confidentiality: Obligations regarding confidential information

16. Governing Law and Disputes: Danish law as governing law and dispute resolution mechanisms

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments

Optional Sections

1. Transportation: Include when seller is responsible for gas transportation arrangements

2. Planned Maintenance: Include when maintenance schedules affect delivery obligations

3. Take-or-Pay: Include when minimum purchase obligations are required

4. Ship-or-Pay: Include when minimum delivery obligations are required

5. Capacity Booking: Include when agreement includes transmission capacity arrangements

6. Gas Trading Rights: Include when buyer has rights to trade or resell gas

7. Green Certificates: Include for biogas or carbon-neutral gas arrangements

8. Storage Rights: Include when agreement includes storage facilities access

9. Change in Law: Include when specific regulatory changes need special treatment

10. Expert Determination: Include when technical disputes require expert resolution

Suggested Schedules

1. Schedule 1 - Delivery Point Specifications: Technical details of delivery point(s) including maps and coordinates

2. Schedule 2 - Quality Specifications: Detailed gas quality parameters and testing methods

3. Schedule 3 - Nomination Procedures: Detailed procedures for daily/weekly nominations

4. Schedule 4 - Price Calculation: Detailed price formulae and adjustment mechanisms

5. Schedule 5 - Measurement Procedures: Technical specifications for measurement equipment and procedures

6. Schedule 6 - Contact Details: List of authorized representatives and contact information

7. Schedule 7 - Form of Credit Support: Templates for bank guarantees or other security documents

8. Schedule 8 - Annual Contract Quantity: Specification of contracted volumes and flexibility

9. Schedule 9 - Operating Guidelines: Day-to-day operational procedures and requirements

10. Schedule 10 - Testing and Verification: Procedures for testing and verifying gas quality/quantity

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