Procurement of Industrial Gas Requirements
Industrial Gas Commercial Advisors (IGCA) offers consulting services for the purchase of new requirements of industrial gases or with assistance with an existing product supply agreement which isn’t performing as expected (see the “Expert Witness” section).
We specialize in on-site and merchant agreements and offer expertise in products such as oxygen, nitrogen, argon, hydrogen, carbon monoxide, syngas, CO2, and CDA. Our founder, John Peterson, has over thirty-five years of experience in drafting and administrating product supply agreements covering buying, selling, and product swap arrangements.
With respect to new requirements, use IGCA for assistance in defining the initial requirement and its mode of delivery, selection of the specific industrial gas supplier, and negotiation of the PSA, as discussed below.
Specific Supplier Selection
After determining the preferred mode of supply, let IGCA assist in developing the RFP (request for proposal) to solicit input from the appropriate suppliers. IGCA’s industrial gas consulting services may be utilized to develop and evaluate proposals, economically evaluate various proposal options, and to work with the industrial gas supplier to find integration opportunities between the supplier and customer facilities.
Product Supply Agreement Negotiation and Contracting
When the mode of supply and potential supplier(s) are identified, use IGCA as your industrial gas consultant during the negotiation of the Product Supply Agreement.
Since such agreements, particularly for large requirements, typically specify long terms, it is exceedingly important to ensure that the PSA remains balanced, and mechanisms exist to address potential issues whenever they arise during the agreement.
Some of the key contractual clauses to focus on during PSA negotiation, such as pricing & pricing escalation, requirements, renewal and dispute resolution, are discussed in our video in the “About Us” section of the website.
Industrial Gas Expert Witness and Dispute Resolution Service
Expert Witness Experience
During his career, John served as an expert witness, corporate representative and/or primary fact witness for numerous dispute resolutions, mediations, and arbitrations totaling over $350MM in settlement exposure. He is also experienced in bankruptcy proceedings, including creditor’s committee participation, and has also testified in bankruptcy court as an expert witness.
John is experienced in large scale project development and contracting, including numerous domestic and international ASU facilities, pipeline enclaves, and SMR/HyCO production plants.
He is also familiar with production economics for on-site ASU and SMR supply modes, as well as merchant economics for most atmospheric and process gases.
The nature of large industrial gas contracts can be quite complex. In many instances, the Industrial Gas Supplier (IGS) has expended significant capital to meet the client’s needs (in some cases, constructing a plant on the client’s facility) and has required a significant contract duration to recover the investment. It’s perfectly reasonable and results in a lower price to the client and a reasonable long-term return for the IGS. Clearly, a win-win. What could possibly go wrong?
Unfortunately, over time, long term agreements can get out of whack. Additionally, despite the best efforts of both parties, many potential third-party problems are not foreseeable or out of the reasonable control of either the client or the IGS. When such issues happen, use Industrial Gas Commercial Advisors’ (IGCA’s) expert witness services and dispute resolution services to support such negotiations with the IGS.
And, when such negotiations do not lead to a mutually acceptable outcome, use IGCA dispute resolution services and expert witness services to pursue a favorable outcome from mediation and/or arbitration.