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Gas industry

India's Oil Regulator Approves Distance-Based Tariffs for Natural Gas Transport

Strategic Insights

— 1 min read

The Petroleum & Natural Gas Regulatory Board (PNGRB) has approved a distance-based tariff for the transportation of natural gas through two main trunk pipelines, operated by state-run GAIL India. The tariffs, which apply to the Hazira-Vijaipur-Jagdishpur (HVJ) and Dahej Vijaipur pipelines, vary by distance zone, with GAIL charging different rates for gas transport between Rs 19.83 and Rs 59.32 per million British thermal units (mmBtu). The regulator had previously approved provisional levelised tariffs for these pipelines, which were Rs 25.46 per mmBtu for HVJ and Rs 53.65 per mmBtu for Dahej Vijaipur.

Key Takeaways:

  • GAIL India will charge Rs 19.83 per million British thermal units (mmBtu) to transport gas for the first 300 kilometres on the Hazira-Vijaipur-Jagdishpur (HVJ) pipeline.
  • The company will charge four different distance-based tariffs on its HVJ and Dahej Vijaipur pipelines, ranging from Rs 22.48 to Rs 59.32 per mmBtu.
  • PNGRB had previously approved provisional levelised tariffs for these pipelines, which were Rs 25.46 per mmBtu for HVJ and Rs 53.65 per mmBtu for Dahej Vijaipur.
  • Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani's company, Reliance Gas Transportation and Infrastructure (RGTIL), will charge Rs 15 per mmBtu for transporting gas in zone-1, and Rs 61.77 per mmBtu for states between Andhra Pradesh and Gujarat.
  • Most of the KG-D6 users are in Maharashtra and Gujarat.
  • The East-West pipeline's tariff was approved by PNGRB for Rs 27.93 per km.

Statistics:

  • GAIL India will charge Rs 19.83 per mmBtu for the first 300 km on HVJ pipeline.
  • The company will charge Rs 27.70 per mmBtu for the last 300 km on HVJ pipeline.
  • RGTIL will charge Rs 60.94 per mmBtu for transporting gas in Gujarat.
  • Most of the KG-D6 users are in Maharashtra (28%) and Gujarat (23%).
  • The East-West pipeline can transport 80 million standard cubic metres of gas per day when all the 10 compressors are installed.

Sources:

  • Asia Pulse (16 June), "India's petroleum regulator approves GAIL India tariff".
  • Press Trust of India (16 June), "PNGRB approves distance-based tariff for GAIL India".

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