Title: Fuel Supply Agreement (Example 1)

Languages: English

Type: Document

Published: January 1, 2003

Region: Latin America and Caribbean

Country: Global / Non-Specific

Sectors: Energy and Power

Keywords: Contractual Provisions, Energy and Power, Energy and Power Core


Fuel Supply Agreement (Example 1)159 KB, Fuel Supply Agreement (Example 1)531.76 KB

Document Summary:

This section provides download link to sample Fuel Supply Agreement.

Document Details:




Name of Agreement:

Model Fuel Supply Agreement


Type of Agreement:

Fuel Supply Agreement

Part of a suite of model documents comprising also: 

Prepared in connection with sector reform as a sample agreement for a country in South East Asia. 

Region (if known):

South East Asia


Year of Agreement/ Draft:


Annotated by:

Victoria Delmon/ Mark Moseley (LEGPS)


Purpose and Context:

Agreement sets out terms on which Fuel Supplier is to provide Fuel to the Delivery Point at the Facility. To be used in conjunction with a PPA.

Circumstances where this contract may be appropriate:





Main Features:

  • Fuel supplier to provide fuel to Delivery Point and the Facility (3).


  • Title and risk pass at the Delivery Point (6).
  • Independent Power Producer (IPP) Company to advise in advance a good faith best estimate for each year’s requirement for Fuel (7.1).



  • IPP Company obliged to take delivery of Fuel – to pay liquidated damages equal to [10]% of cost of Fuel not taken (7.6.2(b)).


  • Seller to pay liquidated damages to extent that Dependable Net Capacity is less than Rated Capacity (no cap on liquidated damages)(3.4)


  • IPP Company to pay for Fuel at price published by [ ] (13.1)


  • Force Majeure (FM) (14) – Events which materially and adversely affect performance of party of its obligations, provided that such effect could not have been prevented by diligence and reasonable care.
  • FM events include non-performance by a counterparty relating to a Facility by reason of an event of event that could constitute FM under this Agreement (therefore important to ensure that the different FM provisions are similar in each agreement).
  • Consequences of FM – Affected Party excused from performance.


  • Dispute resolution (17) - Resolution in good faith by parties. Other disputes, or where expert fails to make a determination, to Arbitration under [UNCITRAL] rules [the arbitration panels for all the contracts of the project should probably be the same].


Possible additional provisions that it might be appropriate to include:






Provisions that may not be advisable to replicate/ may need further thought:






Provisions of wider general use:




Experience Since Coming Into Force (including any amendments)/ if draft form, whether it has been applied:








Tracking Number:



Updated: August 23, 2021