Gas Sales Agreement Template for Indonesia

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Key Requirements PROMPT example:

Gas Sales Agreement

"I need a Gas Sales Agreement under Indonesian law for the supply of natural gas from PT Energy Resources to PT Manufacturing Industries, with delivery of 50 million standard cubic feet per day starting March 2025 for industrial use in West Java."

Document background
A Gas Sales Agreement is a fundamental document in Indonesia's energy sector, used when establishing a contractual relationship between a gas supplier and buyer. The agreement must comply with Indonesia's regulatory framework, particularly Law No. 22/2001 and associated regulations, while addressing commercial, technical, and operational aspects of gas supply. It is typically used for long-term gas supply arrangements and must incorporate specific Indonesian requirements including local content provisions, government approval processes through SKK Migas, and regulated pricing mechanisms. The document becomes necessary when companies need to establish secure, long-term gas supply arrangements for industrial use, power generation, or other commercial purposes, and must address both the commercial framework and technical requirements for gas delivery.
Suggested Sections

1. Parties: Identification of seller and buyer, including registration details and addresses

2. Background: Context of the agreement, including seller's right to sell gas and buyer's intended use

3. Definitions and Interpretation: Definitions of technical and commercial terms, and rules of interpretation

4. Sale and Purchase Obligation: Core obligations including Daily Contract Quantity (DCQ) and Take-or-Pay provisions

5. Term: Duration of agreement, including conditions precedent and termination rights

6. Gas Quality: Specification of gas quality requirements and measurement standards

7. Delivery Point and Title: Specification of delivery point and transfer of title and risk

8. Transportation and Facilities: Responsibilities for gas transportation and facility maintenance

9. Measurement: Gas measurement procedures, standards, and dispute resolution

10. Price and Payment: Gas pricing formula, payment terms, and invoicing procedures

11. Supply Security: Seller's supply obligations and buyer's nomination procedures

12. Force Majeure: Definition and consequences of force majeure events

13. Liability and Indemnity: Allocation of risks and liability between parties

14. Default and Termination: Events of default, remedies, and termination procedures

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. Confidentiality: Protection of confidential information and permitted disclosures

17. Governing Law: Specification of Indonesian law as governing law and interpretation principles

18. Boilerplate Provisions: Standard contract provisions including notices, amendments, and assignment

Optional Sections

1. Make-up Gas: Used when parties agree to make-up rights for take-or-pay quantities - relevant for long-term industrial supply contracts

2. Seasonal Variations: Include when supply varies seasonally or buyer has variable demand patterns

3. Commissioning Gas: Required when agreement covers supply during plant commissioning phase

4. Carbon Credits: Include when parties agree to allocate carbon credits or environmental attributes

5. Infrastructure Development: Required when new infrastructure needs to be built for gas delivery

6. Government Approval: Include when specific government approvals are required beyond standard regulations

7. Local Content: Include when there are specific local content requirements under Indonesian law

8. Gas Balancing: Required when multiple buyers share same gas source or transportation system

Suggested Schedules

1. Schedule 1 - Gas Specification: Detailed technical specifications of gas quality parameters

2. Schedule 2 - Testing and Measurement Procedures: Detailed procedures for gas testing and measurement

3. Schedule 3 - Price Calculation: Detailed pricing formula and adjustment mechanisms

4. Schedule 4 - Delivery Point Specifications: Technical details of delivery point facilities

5. Schedule 5 - Nomination Procedures: Detailed procedures for gas nomination and scheduling

6. Schedule 6 - Form of Bank Guarantee: Standard form for required bank guarantees

7. Schedule 7 - Technical Operating Procedures: Detailed operating procedures and standards

8. Schedule 8 - Contact Details: List of authorized representatives and contact information

9. Appendix A - Site Plan: Maps and drawings of delivery point and relevant facilities

10. Appendix B - Permits and Licenses: Copies of relevant permits and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Oil & Gas

Energy

Manufacturing

Power Generation

Petrochemicals

Industrial Processing

Utilities

Infrastructure

Mining

Transportation

Relevant Teams

Legal

Commercial

Operations

Technical

Finance

Risk Management

Regulatory Compliance

Business Development

Procurement

Health Safety Environment

Project Management

Supply Chain

Government Relations

Relevant Roles

Commercial Director

Energy Trading Manager

Gas Supply Manager

Legal Counsel

Contract Manager

Business Development Manager

Operations Manager

Technical Manager

Risk Manager

Regulatory Compliance Officer

Chief Financial Officer

Project Manager

Energy Procurement Manager

Facilities Manager

HSE Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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