The Petroleum and Natural Gas Regulatory Board – PNGRB has notified 14 new tariff structures for natural gas pipelines. The purpose is to reduce the cost of natural gas for users who are away from the gas and LNG receiving terminals on the west coast of the country.
Highlights:
♦ The purpose of the New Unified Tariff Structure is to reduce the cost of natural gas for users who are away from the gas and LNG receiving terminals on the west coast of the country.
♦ Under the new flat-rate structure, buyers will be charged a fixed rate for natural gas transportation within 300 kilometres from the source, and a fixed rate for natural gas transportation within 300 kilometres of a single pipeline network.
♦ This will be much cheaper for buyers who are far away from the gas source. These buyers charge earlier based on the number of pipes used and the distance from the gas source.
♦ Therefore, buyers who use multiple channels may benefit a lot from this change.
♦ Changes in tariffs are likely to stimulate more investment in natural gas transmission infrastructure, as natural gas prices are becoming increasingly affordable for users far from the country’s west coast.
♦ The Indian government’s goal is to increase the consumption of natural gas to 15% of the current level by 2030. The current consumption of natural gas accounts for 6.2% of India’s energy consumption.
