PNGRB seeks to regulate LNG terminals
Companies planning to set up new liquefied natural gas (LNG) terminals or expand existing ones will need approval of the downstream regulator, according to a draft regulation by the Petroleum and Natural Gas Regulatory Board (PNGRB), which is seeking to regulate terminals that are expanding rapidly while remaining deeply underutilised.
Election Results 2024 Live Updates
Sensex Today | Stock Market LIVE Updates
INDIA bloc won't chase power now, but it plans to breath down NDA's neck
The draft regulation, open to public consultation, is aimed at all operating and future terminals which will have to register with the regulator.
Any entity wanting to build an LNG terminal will have to intimate PNGRB before taking the final investment decision (FID), according to the draft.
Also read: NGRB withdraws notices to declare 54 city gas networks as common carrier
For both new units as well as expansion, the regulator’s approval will hinge on one or more of these criteria such as promoting competition among operators, avoiding infructuous investment, ensuring adequate national gas supply, protecting customer interest and availability of gas evacuation facility from the terminal, according to the draft.
PNGRB can suspend or terminate the registration of a terminal or forfeit its bank guarantee if it’s found involved in unfair trade practice or breaching regulatory obligations, according to the draft.
The proposed regulation requires companies planning new capacity to “have a credible business plan for utilisation
