Asia-Pacific energy disputes - current and emerging trends

Ashurst's  international arbitration team  recently contributed a chapter to Global Arbitration Review's Asia-Pacific Arbitration Review 2023. 

Entitled "Asia-Pacific energy disputes – current and emerging trends", the chapter covers four current and emerging trends in energy disputes in the region, against the backdrop of the increasingly clear distinction between 'conventional energy' disputes and disputes relating to the energy transition.

In summary, the authors explain their views that:

• Gas and its mega disputes are here to stay. The recent spate of LNG price reviews, in particular, is throwing up a number of themes and lessons to which industry participants should be paying close attention.
• The next big set of 'conventional energy' disputes will likely relate to the well-publicised 'wave of decommissioning' set to take place in the coming years in respect of ageing offshore oil and gas assets. These are likely to be complex, multi-faceted disputes for which parties should start preparing now.
• On the energy transition front, the increasing shift to renewable energy presents great opportunity but also great risk. A number of now-familiar issues are generating significant numbers of disputes in this area as well as important lessons for industry players going forward.
• Climate change is not only an existential threat but fertile ground for dispute. The current spate of claims against governments, companies and directors is likely to increase in coming years. Managing these disputes requires significant forward planning and pre-emptive action.