The Petroleum and Natural Gas Regulatory Board (PNGRB) has introduced amendments to the PNGRB (Determination of Natural Gas Pipeline Tariff) regulations to include regulations related to a unified tariff for natural gas pipelines, with a vision of “One Nation, One Grid and One Tariff.”
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As per the regulations, PNGRB has established a levelised unified tariff of Rs 73.93/MMBTU and created three tariff zones for the unified tariff. The first zone covers a distance up to 300 km from the gas source, the second zone is 300-1,200 km, and the third zone is beyond 1,200 km. These zonal unified tariffs will take effect from April 1, 2023.
The national gas grid encompasses all interconnected pipeline networks that are owned and operated by various 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.
As newer interconnected pipelines are commissioned, the national gas grid will continue to expand for unified tariff purposes. Each of these entities will receive the tariff as per their entitlement, while customers will pay the unified tariff. Any difference between the two will be settled between the pipeline entities, and a settlement mechanism has been established for this purpose.
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