The Petroleum and Natural Gas Regulatory Board (PNGRB) has come up with the regulations, Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Second Amendment Regulations, 2020 to provide a detailed procedure for determination of unified tariff for natural gas pipelines. As per the regulations, the invoicing entities will charge the unified tariff for unified contractual path instead of the approved tariff from the shipper. It will be shipper’s liability to pay the unified tariff to the invoicing entity.
However, the entities laying, building, operating or expanding natural gas pipeline other than the one which is part of national gas grid system will continue to charge the approved tariff from the shipper. Additionally, the revenue entitlement under the unified tariff system of the entities laying, building, operating or expanding natural gas pipelines which are part of the national gas grid system will be the revenue with reference to approved tariff for such natural gas pipelines, implying that these entities will remain revenue neutral. The regulation has provided a detailed method for determination of entity-wise revenue entitlement of natural gas pipelines, adjustment of differences in revenue entitlement based on approved tariff and unified tariff collected by entities.
The unified tariff is the weighted average of approved zonal tariffs in respect of the pipelines forming part of the national gas grid system, considering the quantity of gas transported and the quantity of ship or pay, for which the pipeline entity is contractually entitled to recover approved tariff for each such pipeline, states the regulation. It will be determined and approved by the PNGRB in respect of the national gas grid system for each calendar fortnight.
Finally, the PNGRB can make modifications in the provisions of these regulations based on the comments and suggestions of the stakeholders within six months’ period from the date on which this amendment comes into force.