Monthly Progress Report: Commercial Advisory Support for LNG Procurement

The program aims to facilitate the procurement of liquefied natural gas (LNG) for the Government of Pakistan (GoP) through a competitive tender process. In May 2015, the program's implementing partner, Advanced Engineering Associates International, Inc. (AEAI), worked on several tasks to support the GoP's LNG procurement efforts. The program's activities in May 2015 focused on updating commercial terms for Qatargas negotiations, training the GoP on commercial LNG matters, and reviewing and finalizing tender documents. AEAI's team, led by Rob, Alberto, and Fang, worked closely with the GoP and Qatargas to address various issues, including the need for a standby letter of credit (SBLC) and the tender process's complexity. The team also engaged with potential bidders, including Gazprom and Petronas, to provide market intelligence and facilitate communication. During the month, AEAI's team encountered several challenges, including restrictions on communication with other entities within the GoP and attempts by certain parties to control the flow of information. Despite these challenges, the team continued to engage with potential suppliers and provide training to the GoP on commercial LNG matters. The team also worked on LNG specification verification and Qatargas work on SPA closeout. In addition to these activities, AEAI's team assisted the GoP in reviewing tender responses and provided support to PSO in Karachi. The team also suggested a permanent system for port clearances and facilitated communication between PSO and Engro. However, concerns arose over the approach taken by PSO in communicating with Engro, and the team expressed concerns over the shared regulations written by Imran, which were deemed unreasonable by industry standards. The program's activities in May 2015 demonstrate the importance of commercial advisory support in facilitating the procurement of LNG for the GoP. The program's efforts to train the GoP on commercial LNG matters, engage with potential suppliers, and address various challenges will be crucial in ensuring the success of the tender process.