LMOST six months since commencing commercial operations, the LNG import terminal is still gasping for air.

Now we have a leak from PSO the company responsible for arranging the imports saying that in the absence of a longterm arrangement, purchase of LNG by private parties will not be economically feasible since the cost of the imported gas is higher than that of furnace oil in these times. And a long-term supply arrangement from Qatar is facing obstacles because the petroleum ministry has failed to do its homework. Specifically, the homework included arranging an agreement between PSO and the two natural gas distribution companies, SSGC and SNGPL, whose networks will be used to get the consignment to its buyer, as well as dredging of the channel at Port Qasim so it is capable of seeing LNG vessels travel safely through it, and finally an agreement with power producers to develop a payment mechanism.

The whole project was inaugurated with much fanfare by the PML-N government and presented as proof of its business credentials, but almost six months after entering commercial operations, the terminal today presents itself more as a monument testifying to the opposite. It is far too late in the day for blame games or for higher-ups to be clarifying their positions in public. What is needed is rapid movement towards viable imports of the vital fuel. As oil prices decline further in international markets, new challenges on the price front are materialising rapidly, and there is little doubt that the price differential between imported LNG and heavily subsidised domestic gas will pose hurdles. But this ought to have been straightened out by now, considering the ministry had more than a year in which to work out all these issues. We can only hope it is not too late and that LNG imports can begin soon so the terminal will not be just a silent spectator when the winter gas allocation plans are drawn up.