The choice of legal provisions and dispute resolution rules should be uniform in the documentation of projects and in the various toll agreements. If there were to be a dispute within the framework of the toll agreements, it is very likely that several parties, if not all, using the same common or common facilities, will be affected. The dispute resolution process is streamlined and more effective when all parties to the dispute are involved in the same dispute resolution process. Experts are often used as a dispute resolution option when technical or financial disputes arise. Again, these provisions cannot be available without continuity between dispute agreements if not all parties are subject to the same dispute resolution and expert provisions. While lenders may require different forms of security, guaranteeing the source of revenue from the sale of LNG and by-products is essential not only for banks, but also for other project participants. It is typical that a loyalty agreement (often offshore, for investments in developing countries) is created and a paying body is designated. This gives banks and project participants a guarantee on revenues. The use of a secure trust contract gives banks the comfort of having control of the project`s debt proceeds, (ii) the toll company guarantees that their toll is paid, and (iii) project participants ensure that payment is made for the liability of a toll company.

LNG projects are structured in a variety of ways. There is no standard structure; However, the toll model has been used in several recent LNG export projects. With regard to the toll model, the considerations highlighted in this document mainly concern a project toll model, unlike a third-party toll (discussed at the end of the document at a very high level). The royalty structure will be associated with many other provisions of a toll contract. Is the levy profit-oriented or not? Will capital expenditures be part of the royalty? Are operating costs in variable and fixed categorizations? Should all or part of the fee be paid if treatment services are never available? These are all critical issues that should be decided in the decision on the structure of the project. The royalty structure can have an impact on the accountability regime, funding and the relationship between project participants. When implementing an LNG toll structure, the project management company (i) provides a liquefaction processing service to upstream natural gas holders, (ii) upstream natural gas owners (or a subset of them) have an interest in the toll company; (iii) are not responsible if there is no use of another project participant. (iv) is protected to varying degrees from bankruptcy, (v) does not take ownership of natural gas, LNG or by-products, or is not at risk of losing natural gas, LNG or by-products, and (vi) does not take risks. In the application of the toll structure, there may be many variations, so that participants are faced with a number of choices regarding structuring within this model. Understanding the decision points in advance will define the objectives of the participants and facilitate negotiations and preparation of project documentation. Security of natural gas supply and referral to government stakeholders are important elements of the project`s success – there are examples of project disruptions and failures when these critical elements of a project fail.