Pakistan’s decision to ask Turkmenistan to revise the pricing formula for the Turkmenistan Afghanistan Pakistan Iran (TAPI) gas pipeline and to bring down gas price by linking it with Brent crude oil rates is a wise move. The government will re-negotiate the price under the gas sale-purchase agreement with the Turkmen Gas Company in the light of prevalent rates of liquefied natural gas (LNG) and comparable fuels. The TAPI gas pipeline is almost in its implementation phase and Prime Minister Shahid Khaqan Abbasi has stated that the pipeline will become functional in four to five years. Pakistan recently secured a 15-year LNG deal with Qatar at 13.37 per cent of the Brent crude price. The government signed LNG contracts at a lower price of 11.99 per cent of crude oil rate under a long-term arrangement and is now trying to match that price. A clause in the TAPI pipeline agreements says that if Pakistan succeeds in importing gas at cheaper rates, then Turkmenistan and Iran will have to match those prices. Iran was asked by Pakistani officials to bring down the gas price for the IP pipeline. But the project is said to have been put on the back-burner because of the US sanctions on Iran. Nevertheless, the TAPI project will certainly help Pakistan overcome its long standing energy woes. Therefore, it is important for the country to ensure that the new pricing formulas are formed keeping in view the country’s energy shortages so that the energy-starved nation can finally heave a sigh of relief. The successful completion of the project will also help improve Pakistan’s trade relations with India and Afghanistan and pave the way for regional peace and stability. * Published in Daily Times, November 20th 2017.