Govt amends natural gas norms to boost competitive, affordable rates in far-flung areas

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The Petroleum and Natural Gas Regulatory Board (PNGRB) on November 25 introduced an integrated natural gas pipeline tariff to provide access to natural gas in far-flung areas at competitive and affordable rates.

The integrated natural gas pipeline tariff will be a precursor to the unified tariff at the national level which will come into effect from April 1, the regulator said.

“The objective of these changes is to provide access to natural gas in far-flung areas at competitive and affordable rates to achieve the long-cherished objective of one nation one grid and one tariff,” the Petroleum and Natural Gas Ministry said.

The Ministry has made amendments in key areas to accelerate the development of the natural gas infrastructure and boost the growth of the natural gas market in the country. They have amended norms regarding natural gas tariffs, authorisation and capacity regulations. The amendments also include an increment in the number of unified tariff zones to three from two.

The Indian government aims to boost the consumption of natural gas in the country and increase its share in India’s energy basket from 6.2 percent to 15 percent by 2030.

The government claims that unified tariff regulations would reduce the cost of natural gas for users further away from sources of gas and would thus increase its consumption.

To address the settlement issues for the implementation of a unified tariff, an industry committee has also been constituted.

Other amendments such as allowing unaccounted gas, moratorium period and ramp up in capacity have been incorporated.​