THE first shipment of imported LNG should be landing in a few days, yet the negotiations with the Qataris still seem to be continuing.

The recent visit by the emir of Qatar was expected to clear up the issues that are holding up the agreement, but going by the statements coming from the authorities in the wake of the visit, it hasn’t. It appears, going by the reluctance on the part of the government to discuss the matter, that the price remains to be set.

This is a serious issue, and is already showing early signs of becoming politicised. What is even more serious, though, is the evident lack of planning and preparation for the project.

Take a look: Confusion over price of LNG from Qatar

This is especially difficult to fathom considering the great fanfare with which the government announced the project, and the great hopes it seemed to pin on it.

The project has been struck by delays for almost a decade now, from court challenges to the inability of the previous government to implement a tendering process.

But today the delays look like they will be on account of something so basic as an inability to plan and meet deadlines. Not only that, delays this time will mean capacity charges, which are substantial.

So why has an agreement on long-term supplies eluded the government thus far? There is little to no word from the ministry of petroleum about the crucial questions hanging over the project at a crucial moment, in contrast to the celebratory rhetoric in which they wrapped the project in its early days.

In all likelihood, the long-term arrangement will materialise soon — although it must be added that there is no firm basis for believing so. But the delay, the last-minute nature of the whole effort to finalise the deal before the capacity charges kick in, is another reminder of how the government is largely muddling through most of its initiatives.

This was true of the Gadani power park, which has been shelved, and it is true of the coal conversion in power generation. Once LNG imports get under way, whenever that is, it’s very likely that there will be continuing loose ends being tied up on a last-minute basis in matters such as transmission pricing and allocations. The project which ought to have been an emblem of this government’s success appears instead to be turning into an emblem of its lack of competence.

Published in Dawn March 26th , 2015

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