Abstract
The global low carbon energy transition necessitates strategic transformations by the natural gas industry to secure its place in the emerging energy landscape alongside renewable energy. Energy companies are investing in emissions smart technology in natural gas facilities, exponentially increasing the risk associated with the construction of these facilities. The additional risks resulting from the energy transition must be effectively managed to optimise the success of these natural gas infrastructure projects (GIP). This chapter discusses the uncertainties and legal risks arising from the global energy transition, in relation to natural gas infrastructure projects and how such risks can be addressed and managed through engineering, procurement, construction, and commissioning (EPCC) contracts. After a general introduction, the chapter explores the risk profile of traditional gas infrastructure projects and how critical contractual provisions have been adopted to manage risk and operations in these projects, under EPCC contracts, the primary method of procuring natural gas infrastructure. Thereafter, it examines the profile of emerging legal and contractual risks arising in GIPs due to the energy transition, including emerging emissions regulation and the introduction of climate-smart infrastructure. This chapter also examines how this emerging risk can be allocated and managed.
Original language | English |
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Title of host publication | The Palgrave Handbook of Natural Gas and Global Energy Transitions |
Publisher | Springer International Publishing |
Pages | 393-413 |
Number of pages | 21 |
ISBN (Electronic) | 9783030915667 |
ISBN (Print) | 9783030915650 |
DOIs | |
Publication status | Published - 1 Jan 2022 |
Keywords
- Construction procurement
- EPCC contracts
- Energy transition
- International construction projects
- Managing legal risk
- Risk management in infrastructure projects