Since the near creation of the LNG industry, the “take or pay” contractual structure may have become the defining feature of long-term LNG (SPA) sales contracts. The LNG industry and international project lenders are experiencing the benefits of the traditional take-or-pay structure, through the creation of a stable and predictable revenue stream to support project financing. First, the question arises as to whether the buyer would pay or could pay the take or pay bill. Even the use of available credit assistance would likely still leave the seller with insufficient receipts to cover the full amount of such an invoice. Especially for a long-term buyer, failure to take cargo (including multiple loads) may signal a more serious operational or financing problem. and in such a case, issuing a bill for taking or payment without very significant credit support may be of little use. With the Interline/SPA agreements, Turkish Cargo expands its network area and can serve destinations that are not served on their own. Turkish Cargo currently has 160 interline agreements and more than 80 SPA agreements with other airlines, and this number is increasing day by day. These agreements would allow airlines to serve their customers on a wider network.
Second, an over-the-counter or payment invoice can have a negative impact on the long-term business relationship with the buyer. In the past, this was a particularly important consideration for many sellers (especially in the Asian market), given that traditionally there were only a limited number of buyers in the long-term LNG market. For competitive reasons, many sellers did not want to be seen as hostile to long-term buyers. To date, the commercial reality in the LNG industry has been that if the buyer is not able to take multiple loads during a contract year, the seller who accepts the lender`s cooperation will usually resort to another form of commercial solution to the problem (sometimes with cargo diversion or debt restructuring). The IATA Interline Traffic Agreements (MITA) is an agreement in which passengers and cargo are a standard transport document (i.e. . . .