The Planning Commission in Islamabad has recommended that the government replace expensive liquefied petroleum gas (LPG) with cheaper liquefied natural gas (LNG). They have also called for higher natural gas prices and the implementation of cross-border gas pipelines, such as the Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India projects. The commission also advises setting up a new floating LNG terminal, disconnecting gas supply to captive power plants, and using old gas fields to store imported LNG. The commission argues that the current gas pricing regime does not reflect the true cost of LNG, and suggests passing on cost-based LNG prices to consumers to reduce demand and subsidies. They point out that the price of LPG is much higher than natural gas and LNG, making it financially difficult if its import is increased. The commission recommends supplying LNG through pipelines in areas without a gas distribution system, as this would be more affordable and accessible. They also suggest revising consumer prices according to estimated revenue requirements, as the delay in revising gas prices has led to a large revenue shortfall. The commission emphasizes the need to revise natural gas prices to account for market dynamics and challenges in the gas sector. They also mention the potential for pipeline imports of natural gas through neighboring countries and the need for contractual commitments in cross-border pipeline projects.
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