NERA was retained by the seller in a $1 billion price review arbitration of a long-term liquified natural gas (LNG) supply contract. The arbitration clause prescribed a “baseball” (aka “last offer”) arbitration under an ICC tribunal, which restricts the tribunal to choose between either party’s position, with the intent to ensure parties’ claims remain reasonable.

We showed that, under sensible parameter input and modelling variations, the resulting price formulas would be closer to the price formula proposed by our client than to the price formula proposed by the opposing party.

The tribunal sided with NERA and awarded our client its requested revision.