Unified tariff structure for over a dozen gas pipelines to start from Apr 1

Under the new regime, industrial buyers will be charged a fixed tariff for transport of gas over three zones, up from two earlier

More than a dozen gas pipelines, which form the national gas grid, will come under a unified tariff structure from April 1, the Petroleum and Natural Gas Regulatory Board (PNGRB) said on Wednesday.
 

Business Standard reported in February the government’s decision to roll out the new regime by April after months of deliberations.
 

PNGRB has notified a levelised unified tariff of Rs 73.93 per metric million British thermal unit, based on the principle of ‘one nation, one grid and one tariff’. The new tariff is expected to benefit customers transporting fuel over longer distances and multiple pipelines.
 

Currently, customers pay additional tariffs for using multiple and inter-connected pipelines.
 

Under the new regime, buyers will be charged a fixed tariff for the transport of gas over three zones, up from two earlier. This includes transportation of gas within 300 km of a source (gas field or Liquefied natural gas (LNG) import terminal), 300-1200 km and beyond 1,200 km.

National impact

Of the 35,000 km of natural gas pipeline currently in the works, 23,000 km has been commissioned. As a result, the natural gas mission will go live in the next 4-5 years.