High Court of Australia

Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7

Woodside Energy Ltd v Electricity Generation Corporation

88 ALJR 447; 306 ALR 25

5 Mar 2014

Case Number: P47/2013 P48/2013


French CJ, Hayne, Crennan, Kiefel, Gageler JJ


Contract − Construction – Long term gas supply agreement – Sellers obliged to use "reasonable endeavours" to supply supplemental gas – Agreement allowed sellers to take into account all "relevant commercial, economic and operational matters" in determining whether able to supply supplemental gas – Gas explosion at plant operated by third party temporarily reduced supply of gas to market – Sellers refused to supply supplemental gas at price stipulated in agreement during period of reduced supply – Sellers offered to supply equivalent quantities of gas at higher price under separate short term agreements – Whether sellers breached obligation to use "reasonable endeavours" to supply supplemental gas.

Words and phrases – "able", "reasonable endeavours", "relevant commercial, economic and operational matters".

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