Energy & Natural Resources

CLDP’s Energy and Natural Resources team provides legal technical support to governments grappling with the challenge of meeting national demand for reliable energy and mineral resources to ensure sustainable economic growth.  We advise ministries, regulators, and State-owned entities on issues across the energy spectrum, including: fiscal and regulatory frameworks for upstream oil and gas investment; developing national and cross-border gas and power markets; importing and establishing regulatory frameworks to support downstream markets for liquefied natural gas (LNG); power sector reforms including incorporating renewables, distributed generation and electric vehicles and allowing micro-grids to be constructed, operated and integrated into the central transmission grid; mining and minerals governance; and structuring financeable power projects in accordance with international best practices.  CLDP is a partner implementer with Power Africa and Asia EDGE (Enhancing Development and Growth through Energy).

Upstream Oil and Gas

Petroleum is a major component of most countries’ economies. Many governments rely on the royalties and dividends from state-owned companies to sup ort their budgets, and, in turn, their national economic growth and social safety nets. Yet petroleum is also a challenge: new projects are among the largest and most capital-intensive in the world; oil and natural gas markets are volatile; and regulating petroleum sectors is extremely complex.  Successfully leveraging private investment towards exploring for and producing new commercially viable resources – onshore or offshore, in shale and other unconventional formations, or through enhanced recovery – requires a reliable regulatory framework, competitive terms, significant institutional capacity, and a transparent process of licensing and managing blocks.  CLDP assists governments on the policies, laws, regulations, and contracts that underpin petroleum sectors built on private investment.

Gas Markets and LNG

Gas is no longer the unwanted cousin of oil, only commercial if piped to nearby cities or markets just across the border.  A rapid rise in natural gas demand, the shift to competitive gas markets, and the transition to a global LNG market have governments seeking natural gas as a cost-competitive source of energy as well as a viable transitoin fuel in the quest to decarbonize the power, transportation fuel, and other sectors. CLDP advises governments on the policy changes that will enable a competitive gas market, and advises regulators and gas utiltiies on the regulations that will incentivize entrants to compete, including to sell regasified LNG into that market. CLDP advises on cross-border trading in natural gas, on options available for making "stranded" gas commercially feasible, and on inter-ministerial cooperation. CLDP leverages the lessons learned from the U.S.'s restrucutring of its natural gas market, and its oversight of new pipeline and port infrastructure for LNG.

Power

In recent decades, the traditional model of power infrastructure built around large-scale generation projects and expanding central transmission grids has given way to a more diivse market with smaller scale generators and more decentralized grids. CLDP assists governments to successfully manage that transition to open market structures, working at both the policy and commercial level.  In the policy space, CLDP helps governments reconcile their overlapping roles as power market regulators, project partners, and power customers.  CLDP also works at the commercial level to prepare governmetns to negotiate with private power project developers and lenders to achieve mutually beneficial outcomes.

CLDP organized the "Understanding" series on power sector development under the aegis of Power Africa and with support from USAID in partnership with stakeholders such as the African Legal Support Facility.  Following a collaborative method the handbooks sought to incorporate the input of African governments, private sector experts, and multilateral institutions:

  • Understanding Power Purchase Agreements
  • Understanding Power Project Financing
  • Understanding Power Project Procurement

CLDP is expanding the "Understanding" library to include dedicated handbooks on transmission financing and energy storage. 

Mining and Minerals

The global economy depends on a reliable supply of metals and minerals.  Although many countries are endowed with significant deposits, governments are challenged to manage their development - how to incentivize investment and ensure environmental and social oversight.  Recently, the U.S.State Department, Bureau of Energy Resources, launched its Energy Resource Governance Initiative (ERGI) to promote resilient and secure energy resource mineral supply chains for the US and its partners.  Under the aegis of ERGI, CLDP provides assistance to governments to develop national and provincial investment frameworks for sustianable mining in key minerals.  CLDP advises on best principles in mineral extraction governance and best practices for regulators, and assists in the development of regulations that promote transparent, competitive, and sustainable mining.

CLDP in Action

December 12, 2019

On December 12, in Manama, Bahrain, CLDP held a workshop focused on technology transfer for representatives from government, academia, and the startup community.