AIPN Publishes LNG Sale and Purchase Agreement

Houston (September 24, 2009) – The Board of Directors of the Association of International Petroleum Negotiators (AIPN) has approved the publication of a new Model Form Master LNG Sale and Purchase Agreement (MSA).

The MSA is intended to promote the creation of a secondary market for liquefied natural gas (LNG) that will facilitate trading and arbitrage of LNG cargoes. The MSA helps the industry achieve this goal by establishing a uniform short-term and spot sales agreement and thereby reducing transaction time, cost and uncertainty.

Co-chairs Steven Miles (partner, Baker Botts LLP) and Harry W. Sullivan, Jr. and their drafting committee held more than 15 meetings and 5 workshops in 7 countries on 5 continents over a 3 year period in order to develop and finalize the MSA. The drafting committee was comprised of more than 150 industry representatives, including members from many of the major LNG sellers, buyers, transporters and traders worldwide.

The publication of the MSA concludes a substantial industry-wide effort to create a model contract that balances the interests of sellers and buyers, is geographically neutral, and contains all of the provisions that most parties will require in a Master LNG Sale and Purchase Agreement. The MSA includes alternatives and options as well as guidance notes for users.

The LNG MSA is the latest in a series of hydrocarbon-related model contracts published by the AIPN to facilitate the negotiation of energy transactions around the globe. The MSA and other model contracts can be found at the AIPN’s website, www.aipn.org.

The AIPN is a non-profit organization founded in 1981 to develop the professional relationships and education of international energy negotiators. The 2600 members of the AIPN are located in over 80 countries, representing numerous international oil and gas companies, host governments, law firms, multilateral organizations and academic institutions. Our members come from many different disciplines, including commercial, technical, academic, and legal.