GTC (general terms and conditions) hydrocarbon trading committee
The GTC (General Terms and Conditions) Hydrocarbon Trading Committee has been established is developing and maintaining voluntary standard GTCs for hydrocarbon physical trades on behalf of the wider trading community.
The Energy Institute is providing coordination and technical support to the Committee through an independent Chairman, (Chris Moorhouse), and Secretary, (Richard Heins).
Reed Smith LLP, who instigated the initiative, are providing expert legal advice.
Membership is open to all companies or organizations involved in hydrocarbon physical trades and the Committee welcomes new members, particularly trading companies and representatives from the banking community.
The objectives of the Committee are:
- To develop commercially neutral model physical hydrocarbon trading contracts through involvement and consensus of a representative section of the trading community.
- To publish the model GTCs as they are developed.
- To maintain those GTCs and to develop additional standard documents as required to meet market needs.
These voluntary GTCs will aim to ensure a clear and full allocation of legal liability for all reasonably foreseeable events which may occur during the course of the contract. Adoption of these GTCs should:
- Facilitate contract certainty for traders operating in this market and reduce transaction costs which arise if clauses have to be negotiated for individual deals.
- Facilitate moves towards electronic deal confirmation.
- Remove potential barriers to trades, leading to increases in volumes
The Committee has already established links with the International Swaps and Derivatives Association (ISDA) and the Leadership for Energy Automated Processing (LEAP) initiative to ensure seamless co-ordination.
For enquiries please contact the committee secretary, Richard Heins, at e: email@example.com
Four GTC committee's puplications are available to download free from the publishing website:
- HM 80: Model General Terms and Conditions for the FOB (free on Board) Sale and Purchase of Crude Oil
- HM 81: Model general terms and conditions for cost insurance and freight (CIF) and cost of freight (CFR) sale and purchase of crude oil
- HM 82: Model general terms and conditions for free on board (FOB) sale and purchase of petroleum products
- HM 83: Model general terms and conditions for cost, insurance and freight (CIF), cost and freight (CFR) and delivery at place (DAP sale and purchase of petroleum products