PNGRB amends regulation to allow unified tariff for natural gas pipelines

The Petroleum and Natural Gas Regulatory Board (PNGRB) has amended the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations to incorporate regulations pertaining to a unified tariff for natural gas pipe­lines, with the mission of “One Nation, One Grid, One Tariff”. Based on the regulations, PNGRB has notified a levellised unified tariff of Rs 73.93 per million British thermal unit (mmBtu) and created three tariff zones for unified tariffs, wherein the first zone extends to a distance of 300 km from the gas source, the second zone to 300-1,200 km, and the third zone is be­yond 1,200 km. The zonal unified tariffs are effective from April 1, 2023. With the commissioning of newer interconnected pipelines, the national gas grid will keep expanding for unified tariffs. These entities will get the tariff as per their entitlement while customers will pay the unified tariff. The difference will be settled between the pipeline entities, for which a settlement mechanism has been notified.