Document background
The Gas Sales Agreement (GSA) is a fundamental commercial contract used in the Philippine energy sector to establish the legal and operational framework for natural gas transactions. This document is essential when a gas supplier intends to sell and a buyer intends to purchase natural gas on a long-term basis. It becomes particularly relevant in the context of the Philippines' growing natural gas market and the government's push for cleaner energy sources. The agreement must comply with Philippine energy regulations, particularly the Downstream Oil Industry Deregulation Act and Department of Energy directives. It typically includes detailed provisions on gas specifications, delivery commitments, pricing mechanisms, measurement procedures, and operational protocols, often incorporating take-or-pay obligations and force majeure provisions specific to the Philippine context.
