Force majeure Claim Based on COVID-19 in ‎LNG Sales Contracts

The global emergence of the coronavirus called COVID-19 is one of the greatest challenges of our time. The outbreak of this disease has caused problems in various areas of contracts. One of these areas is the energy sector and LNG sales contracts, which due to the restraining measures of various governments, has faced a decrease in demand and an increase in contractual concerns about the implementation of obligations in existing LNG purchase and sale contracts, especially gas and oil supplies. There are differing views on whether the COVID-19 is an instance of force majeure. It seems that in the first place, this disease and its consequences can appear as a force majeure and meet its standards, but there are principles such as the principle of sanctity of contracts and the existence of capacities such as the condition of receiving or paying and deviating from the destination. In LNG sales contracts, it can lead to managing the consequences of the virus and challenge the force majeure claim threin.