PNGRB approves unified tariff for natural gas pipeline

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

Petroleum and Natural Gas Regulatory Board (PNGRB) on March 29 approved levelised unified tariff for natural gas pipeline of Rs 73.93 per metric million British thermal unit (MMBtu).

The unified tariff would be effective from April 1, 2023.

The regulator said it has amended PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate the regulations pertaining to unified tariff for natural gas pipelines with a mission of “One Nation, One Grid and One tariff”.

By “One Nation, One Grid and One tariff”, the Indian government aims to boost the consumption of natural gas in the country and increase its share in India’s energy basket from current 6.2 percent to 15 percent by 2030.

PNGRB also defined three zones for unified tariff, wherein the first zone is up to the distance of 300 km from the source, second zone is more than 300 km and up to 1,200 km while the third zone is the remaining length of the national gas grid system.

The national gas grid covers all the interconnected pipeline networks owned and operated by entities including Indian Oil Corporation Limited (IOCL), Oil and Natural Gas Corporation Limited (ONGC), GAIL (India) Limited, Pipeline Infrastructure Limited, Gujarat State Petronet Limited (GSPL), Gujarat Gas Limited, Reliance Gas Pipelines Limited, GSPL India Gasnet Limited, and GSPL India Transco Limited.

“The reform will specially benefit the consumers located in the far-flung areas where currently the additive tariff is applicable and facilitate development of gas markets and vision of government to increase the gas utilisation in the country,” said PNGRB.

PNGRB informed that an industry committee was formed to develop the settlement mechanism in terms of the tariff regulations. The industry committee submitted its recommendations which were forwarded to stakeholders for comments. The final decision was then made at an open house at PNGRB office.