A conditional agreement between a producer and gas buyer that must be satisfied before a project moves to full development. For subcontractors, it signals that major field mobilisation and long-term work commitments depend on this deal closing. Delays or failed negotiations can stall contracts, procurement, and crew deployment.
Gas Sales Precedent Agreement
Related Terms
Cctv (closed-Circuit Television) Inspection
IndustryA method of inspecting pipelines, conduits, or underground infrastructure using a camera mounted on a remote-controlled crawler. Subcontractors are often mobilised to conduct these surveys and deliver video footage with written condition reports. Findings directly affect scope changes, defect repair contracts, and downstream work orders.
Midstream Consolidation
IndustryThe merging or acquisition of pipeline, processing, and storage companies into fewer, larger operators. For subcontractors, this can shift approved vendor lists and contract terms overnight. Expect longer onboarding processes and tighter pricing pressure from consolidated procurement teams.
Sole-Source Contract
IndustryA contract awarded directly to one subcontractor without a competitive bidding process. Operators use this when your firm has specialised expertise, proprietary equipment, or an urgent mobilisation is required. It can mean faster contract execution but often comes with tighter scope and pricing scrutiny.
Bcf/d (billion Cubic Feet Per Day)
IndustryA measure of natural gas production or pipeline throughput volume. Higher BCF/d figures on a project typically signal larger-scale operations requiring more field crews and equipment. Subcontractors can use this metric to gauge the scope and duration of potential work.
Satellite Jetty
IndustryA secondary or auxiliary dock located away from a main terminal, used to load or offload vessels at remote points along a waterway. Subcontractors may be mobilised specifically to satellite jetties for marine construction, maintenance, or material handling work. Access and logistics can differ significantly from main terminals, affecting crew scheduling and equipment mobilisation.
Condensate
IndustryA light liquid hydrocarbon that separates from natural gas during production and processing. Subcontractors handling condensate must follow strict hazmat protocols, as it is highly volatile and flammable. It is often measured and valued separately from crude oil on production sites.
Latest Industry News
ConocoPhillips Locks In 30-Year North Slope Gas Deal for Alaska LNG Phase One
ConocoPhillips Alaska has signed a 30-year gas sales precedent agreement with Glenfarne Group, completing supply commitments from all three major North Slope producers needed to support a Phase One final investment decision for the Alaska LNG project.
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