Litigation & International Arbitration support expertise

The current context of profound disruptions impacting the European and global energy markets is conducive to trigger arbitration procedures related to long-term gas and LNG Supply & Purchase Agreements. These disputes are by their nature expert-evidence intensive, as they require extensive market, regulatory and pricing analyses.

We regularly support international energy players in their arbitration proceedings. Our independent experts work hand-in-hand with  international law firms and client’s teams to provide robust and clear analyses to support the case.

How we support our clients

We support our clients by conducting the required analyses regarding the assessment of the gas market value and pricing issues in relation to price reviews and international arbitrage proceedings.

Examples of analyses we perform in the context of price reviews:

• Retail market:
  • Segmentation, analysis of the competitive intensity and assessment of market value on each end-user segment
  • Valuation methodologies: historical netback approach, competition with alternative source of energy when relevant / gas-to-gas competition / economic equilibrium
  • Robust quantitative analyses in turbulent markets: quantification of infrastructure costs, commercial gross and net margins, netback value computation at the hub or at a specific delivery point, impact of price caps on gas value, integration of demand destruction and building of innovative pricing schemes when relevant. Cross-referenced analysis of public and specialized databases. Data-mining of market players’ answers to public consultations
• Wholesale market:
  • Analysis of the liquidity of wholesale markets, market decoupling and price spreads, transparency, churn rate, bid-ask spread, relevance of hub price as a market driver on the various end-user segments
  • Analysis of price formation mechanisms. Quantitative benchmark with other gas markets when relevant

• Contractual price level and formula:
  • Quantitative analysis of contract value and associated value chain, indexation, market products
  • Economic quantitative valuation of contractual options and flexibilities depending on the prevailing market conditions at the time of the Price Review, assessment of the flexibility value for pipe gas and LNG contracts, LNG vessels diversions

When we intervene

We support our clients at the various stages of the arbitration proceedings:

• Pre-arbitration phase: we provide our clients with the required assessments during the negotiation phase with their counterparts. Elaboration of interim analysis and position papers with lawyers
• Arbitration trigger and expert reports exchange phase: our experts are experienced in writing robust and clear reports destined to the tribunals
• Hearings phase: we submit impactful expert reports and defend our conclusions during presentations and cross-examinations. Strong credibility before arbitral tribunals through an in-depth expertise of the full value chain.