Monthly Progress Report: Commercial Advisory Support for LNG Procurement

The program aimed to support the development of a competitive and transparent LNG market in Pakistan. In January 2015, the program's implementing partner, Advanced Engineering Associates International, Inc. (AEAI), worked on one task order to support the Government of Pakistan in its LNG procurement efforts. The task order focused on preparing a draft Master Sales Agreement (MSA) with Qatargas, a Qatari LNG producer. The draft MSA was finalized and sent to the Government of Pakistan on January 7, 2015. The program also involved the development of a training schedule and program for the Government of Pakistan's officials. However, the training was delayed due to the Government's insistence on conducting it in Pakistan. The program team reviewed drafts of Qatargas' long and short-term supply agreements and prepared comments for meetings in Doha, Qatar, during the week of January 18, 2015. A key milestone in January 2015 was the travel of the program team to Doha, Qatar, for negotiations with Qatargas. The team met with the Minister of Energy and the new Managing Director of Pakistan State Oil (PSO), Shahid Islam. The program team also reviewed further drafts of the SPA and strategy, including FSRU compatibility and liaised with Excelerate, a US-based LNG company. The program team continued to work with the Government of Pakistan on the SPA, but noted that the Government was making decisions on various commercial clauses that did not always align with the program's recommendations. The team traveled to Islamabad on January 30 to continue negotiations with Qatargas, specifically to help the Government finalize a supply contract.