PNRGB amends norms to allow unified tariff on natural gas pipelines

The Petroleum and Natural Gas Regulatory Board (PNGRB) has amended its regulations to allow unified tariff for natural gas pipelines.

The regulator has notified a levelized unified tariff of ₹73.93 per metric million British thermal unit (MMBTU) and created three tariff zones for unified tariff, where the first zone is up to a distance of 300 kms from gas source, second zone is 300 – 1200 kms and third zone is beyond 1200 kms. The zonal unified tariffs will be effective from 1 April 2023.

“The Petroleum and Natural Gas Regulatory Board (“PNGRB”) 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’,“ a statement said.

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

The statement said that with commissioning of newer interconnected pipelines, the national gas grid will keep expanding for Unified tariff. These entities will get the tariff as per their entitlement while customers would pay Unified tariff. 

The difference between the same will be settled between the pipeline entities for which a settlement mechanism has been notified.

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 utilization in the country.