Date: 2022-11-18Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 19 of 2006, the Petroleum and Natural Gas Regulatory Board hereby makes the following regulations to amend the Petroleum and Natural Gas Regulatory Board
## Policy Analysis Report: Petroleum and Natural Gas Regulatory Board (PNGRB) Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Petroleum and Natural Gas Regulatory Board (PNGRB) Amendment Regulations, 2022, which amends the Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008. The core purpose of these amendments is to refine the process for authorizing and managing natural gas pipeline capacity, particularly regarding expansion. The key findings reveal changes to the definition of authorized capacity and the procedures for capacity expansion, potentially promoting competition and ensuring equitable distribution of natural gas.
**2. Introduction:**
This report provides an informative analysis of the Petroleum and Natural Gas Regulatory Board (PNGRB) Amendment Regulations, 2022, based solely on the provided policy text. The purpose is to inform affected stakeholders about the specific changes introduced by this amendment and their potential implications.
**3. Policy Overview:**
* **Original Policy Amended:** Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008.
* **Core Objective(s) (inferred from the text):** To regulate and manage the authorization and expansion of natural gas pipelines, ensuring equitable distribution, protecting consumer interests, and promoting competition within the natural gas sector.
**4. Background and Rationale:**
This amendment appears to address the need for a more streamlined and flexible process for managing natural gas pipeline capacity, particularly concerning expansion. The amendments suggest a desire to refine the definition of "authorized capacity," adapt to revised capacity approvals, and introduce a mechanism for inviting bids for pipeline expansion. This likely aims to optimize investment, promote competition, and secure adequate gas availability at reasonable tariffs. The changes to tariff zones also hint at the need for more granular tariff structures.
**5. Key Provisions / Changes:**
The amendment introduces the following key changes:
* **Definition of "Authorized Capacity":** A new clause (ba) is inserted in Regulation 2(1) defining "authorized capacity" as the initial design capacity in the Letter of Authorization or acceptance. It also allows for amendments to this capacity by the Board based on revised approvals under Regulation 5(5)(g) of the Capacity Regulations, 2010.
* **Difference/Effect:** This clarifies the baseline capacity and allows for adjustments based on subsequent Board approvals, providing a more dynamic and responsive framework.
* **Regulation 2(1)(h) Subclause (i):** The word "origin" is substituted by the word "injection."
* **Difference/Effect:** This suggests the emphasis is on where the gas is entering the pipeline, rather than where the pipeline begins its route.
* **Regulation 2(1)(h) Subclause (ii):** The word "including" is substituted by the word "includes."
* **Difference/Effect:** This suggests that it should be read as "includes but is not limited to".
* **Regulation 2(1)(h) Subclause (ii):** The phrase "under the explanation, starting with the point of origin and.. and ending with .or fixation of the natural gas pipeline tariff by the Board." is substituted with "the entity shall submit to the Board, information regarding various tariff zones and their sequential numbering in the natural gas pipeline from each point of injection."
* **Difference/Effect:** This change requires entities to provide detailed information regarding tariff zones and their numbering from injection points, likely to facilitate tariff calculations and ensure transparency.
* **Regulation 12 - Capacity Expansion:** Subregulation 1 is deleted and Subregulations 2 and 3 are substituted. The new regulations state that entities proposing capacity expansion must submit a proposal to the Board, which may allow the expansion. However, the Board also reserves the right to invite bids for expansion if it believes doing so would promote competition, avoid infructuous investment, maintain or increase supplies, ensure equitable distribution, protect customer interests, or incentivize rapid development of pipeline infrastructure.
* **Difference/Effect:** This significantly alters the process for capacity expansion, giving the PNGRB more direct control and the option to introduce competitive bidding. It allows the Board to prioritize public interest objectives over the sole discretion of the pipeline operator.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Entities authorized to lay, build, operate, or expand natural gas pipelines.
* Potential bidders for natural gas pipeline expansion projects.
* Consumers of natural gas.
* The Petroleum and Natural Gas Regulatory Board (PNGRB).
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Petroleum and Natural Gas Regulatory Board (PNGRB) is the primary responsible body for implementing and enforcing these amendments.
* **Timelines/Procedures:** The amendments come into force on the date of their publication in the Official Gazette (November 18, 2022). The procedure for capacity expansion now involves submitting proposals to the Board, who then has the option to approve the expansion or invite bids. The timelines for these processes are not specified in the provided text. The regulations also require submission to the Board of information regarding various tariff zones and their sequential numbering in the natural gas pipeline from each point of injection.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these amendments are:
* **Increased Competition:** The option to invite bids for capacity expansion is expected to promote competition among entities, potentially leading to more efficient and cost-effective pipeline development.
* **Optimized Investment:** By inviting bids, the PNGRB aims to avoid infructuous investment and ensure that expansion projects are aligned with market demand and public interest.
* **Equitable Distribution and Availability of Natural Gas:** The amendments seek to maintain or increase supplies of natural gas and ensure equitable distribution throughout the country, addressing potential supply bottlenecks.
* **Protection of Customer Interests:** Competitive bidding and optimized investment are expected to lead to reasonable natural gas pipeline tariffs, protecting customer interests.
* **Rapid Development of Pipeline Infrastructure:** Incentivizing rapid development through competitive bidding and clearer capacity definitions.
**9. Conclusion:**
The PNGRB Amendment Regulations, 2022 represent a significant shift in the regulatory framework for natural gas pipelines in India. The changes aim to enhance the PNGRB's control over capacity expansion, promote competition, and ensure equitable access to natural gas at reasonable prices. These amendments are likely to have a substantial impact on pipeline operators and future infrastructure development in the natural gas sector.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board: A regulatory body responsible for the petroleum and natural gas sector.
Petroleum and Natural Gas Regulatory Board Act, 2006: The Act of Parliament that establishes and empowers the Petroleum and Natural Gas Regulatory Board.
Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008: Regulations established by the Petroleum and Natural Gas Regulatory Board concerning the authorization of entities involved in natural gas pipeline activities.
Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Amendment Regulations, 2022: Amendment regulations to the 2008 regulations, made in 2022.
Central Government: The Union Government of India.
Petroleum and Natural Gas Regulatory Board Determining Capacity of Petroleum, Petroleum Products and Natural Gas Pipeline Regulations, 2010: Regulations by the Petroleum and Natural Gas Regulatory Board concerning the determination of capacity for petroleum, petroleum products, and natural gas pipelines.
Ring Road, Mayapuri, New Delhi: Location of the Government of India Press.
Delhi: Location of Controller of Publications.
Anil Kumar Garg: Jt. Adviser Admin
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलxx.-GअID.-E1x8xx1 12022-240405
CG-DL-E-18112022-240405
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 589] नई ददल्ली, िुक्रिार, निम्ब र 18, 2022/कार्मतक 27, 1944
No. 589] NEW DELHI, FRIDAY, NOVEMBER 18, 2022/KARTIKA 27, 1944
परे ोजलयम और प्राकृजतक गसै जिजनयामक बोडड
अजधसचू ना
नई ददल्ली, 17 निम् बर, 2022
फा. स.ं पीएनजीआरबी/प्राजध./2-एनजीपीएल(08)(1)2022.—पेरोजलयम और प्राकृजतक गसै जिजनयामक बोडड
अजधजनयम---, 2006 (2006 का 19) की धारा 61 द्वारा प्रदत्त िजियों का प्रयोग करत े हुए पेरोजलयम और प्राकृजतक गैस
जिजनयामक बोडड एतद्दिारा पेरोजलयम और प्राकृजतक गैस जिजनयामक बोडड (कंपजनयों को प्राकृजतक गैस पाइपलाइनों को
जबछाने, जनमाडण, प्रचालन या जिस्ट्तार करन े के जलए प्राजधकृत करना) जिजनयम 2008, म ें संिोधन करन े के जलए
जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत्:-
1. संजिप्त िीर्कड और प्रारंभण:
(1) इन जिजनयमों को पेरोजलयम और प्राकृजतक गैस जिजनयामक बोडड (प्राकृजतक गैस पाइपलाइनों को जबछान,े जनर्ममत
करन,े प्रचाजलत करन े या उनका जिस्ट्तार करन े के जलए कंपजनयों को प्राजधकृत करना) सिं ोधन जिजनयम, 2022 कहा
जाएगा ।
(2) ये सरकारी राजपत्र म ेंप्रकािन की तारीख स ेलाग ू होंगे।
2. परे ोजलयम और प्राकृजतक गसै जिजनयामक बोडड (प्राकृजतक गसै पाइपलाइनों को जबछान,े जनर्ममत करन,े प्रचाजलत करन े
या उनका जिस्ट्तार करन ेके जलए कंपजनयों को प्राजधकृत करना) जिजनयम, 2008 म,ें -
(1) जिजनयम 2 के उप-जिजनयम 1 म,ें -
(i) खंड (ख) के पश्चात ्जनम्नजलजखत खंड जोडा जाएगा, अथाडत ्:-
7680 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
"(खक) "प्राजधकृत िमता" का अथ ड प्राकृजतक गैस पाइपलाइन की प्रारंजभक जडजाइन िमता ह,ैजैसा दक जारी दकए गए
प्राजधकरण पत्र या केन्द र सरकार प्राजधकरण स्ट् िीकृजत पत्र म ेंिणडन ह ै।
बिते दक पेरोजलयम और प्राकृजतक गैस जिजनयामक बोड ड (पेरोजलयम, पेरोजलयम उत्पाद और प्राकृजतक गैस पाइपलाइन की
िमता का जनधारड ण) जिजनयम, 2010) के जिजनयम 5 के उपजिजनयम (5) के खंड (छ) के अनुसार बोड ड द्वारा अनुमोददत
कोई संिोजधत िमता होन े की जस्ट्थजत म ें बोड ड केन्दरीय सरकार के प्राजधकरण के जलए प्राजधकार या स्ट्िीकृजत पत्र प्रदान करन े
के जलए पत्र म ें संिोधन जारी दकया जाए, और बोड ड द्वारा अनमु ोददत ऐसी संिोजधत िमता को पाइपलाइन की संिोजधत
प्राजधकृत िमता के रूप म ेंमाना जाएगा।
(ii) खंड (ज) के उपखंड (i) म ें , 'मूल प् िाइंंों ' िब्द को " इंजेक्ि न " िब्द स ेप्रजतस्ट्थाजपत दकया जाएगा।
(iii) खंड (ज) के उपखडं (ii) म,ें "िाजमल "िब्द को "िाजमल " िब्द स ेप्रजतस्ट्थाजपत दकया जाएगा।
(iv) खंड (ज) के उपखडं (ii) म ें स्ट्पष्टीकरण के अधीन िब्द, "प्राकृजतक गैस पाइपलाइन ..."स े प्रारंभ होकर स ेप्रारंभ् होन े
िाले और "म ें दिाडया जाएगा" के साथ समाप्त होन े िाले िब् द जनम्नजलजखत स े प्रजतस्ट्थाजपत दकए जाएँग,े अथाडत ् :-
"कंपनी प्राकृजतक गैस पाइपलाइन के प्रत्येक इंजेक्ि न प् िाइंं से जिजभन्न ंैररफ जोन और उनकी अनुक्रजमक संख्या के बारे म ें
बोडड को जानकारी प्रस्ट्तुत करेगी।
(2) जिजनयम 12 म,ें -
(i) उपजिजनयम (1) को हंा ददया जाएगा।
(ii) उप-जिजनयम (2) को जनम्नजलजखत स ेप्रजतस्ट्थाजपत दकया जाएगा:
"यदद प्राकृजतक गैस पाइपलाइन की िमता का जिस्ट्तार करन े का प्रस्ट्ताि ह,ै तो कंपनी बोड ड के जिचार के जलए एक प्रस्ट्ताि
प्रस्ट्तुत करेगी और बोडड सोच जिचार करके प्राकृजतक गैस पाइपलाइन म ेंिमता के जिस्ट्तार की अनुमजत दे सकता ह ै।
(iii) उप जिजनयम (3) को जनम्नजलजखत स ेप्रजतस्ट्थाजपत दकया जाएगा;
"उपरोि उप-जिजनयम के तहत प्राकृजतक गैस पाइपलाइन म ेंिमता के जिस्ट्तार के बारे म ेंप्रािधान उन सभी प्राकृजतक गैस
पाइपलाइनों पर लागू होंगे जो या तो जिजनयम 4, 18, 19 के तहत बोड ड द्वारा प्राजधकृत ह ैंया केंर सरकार द्वारा प्राजधकृत
जिजनयम 17 के तहत स्ट्िीकार दकए गए ह:ैं
बिते दक बोड ड िैकजल्पक रूप स े ऐसे प्रस्ट्ताजित जिस्ट्तार के स्ट्थान पर जनजिदा आमंजत्रत कर सकता ह,ै यदद बोडड द्वारा यह
राय दी जाती ह ैदक जनजिदाओं का जनमंत्रण जनम्नजलजखत उद्देश्यों म ें स े एक या अजधक को पूरा करेगा, अथाडत्: –
(i) कंपजनयों के बीच प्रजतस्ट्पधाड को बढािा देना;
(ii) जनष्फ ल जनिेि स े बचाना;
(iii) समान जितरण करने के जलए आपूर्मतयों को बनाए रखना अथिा उन्दह ेबढाना अथिा देिभर म ेंप्राकृजतक गैस की
पयाडप्त उपलब्धता सुजनजश्चत करना;
(iv) उजचत प्राकृजतक गैस पाइपलाइन ंैररफ पर प्राकृजतक गसै की उपलब्धता के संदभड म ें उपभोिा के जहतों की रिा
करना;
(v) प्राकृजतक गैस पाइपलाइन अिसंरचना के रतू जिकास को प्रेररत करना।
अजनल कुमार गग,ड संयुि सलाहकार (प्रिा.)
[जिज्ञापन-III/4/असा./411/2022-23]
पाद रंप्प ण: मुख्य जिजनयम सा.का.जन. 340(अ) ददनांक 06/05/2008 के के माध् यम स े अजधसूजचत दकय े गय े थ ेऔर इनम ें
एतद्वारा संिोधन दकया गया था:
I. सा.का.जन 802 (अ) ददनांक 19.11.2008
II. सा.का.जन 769 (अ) ददनांक 20/10/2009
III. सा.का.जन. 38 (अ) ददनांक 18/01/2010[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 3
IV. सा.का.जन. 480 (अ) ददनांक 07/06/2010
V. सा.का.जन. 594 (अ) ददनांक 09/07/2010
VI. फा.स.ं पीएनजीआरबी/एम (सी)/48 ददनांक 17.02.2014
VII. फा.स.ं पीएनजीआरबी/एनजीपीएल/जिजनयम/संिोधन-2014 ददनांक 08/08/2014
VIII. फा.स.ं एल-जिजिध/VI/1/2007 ददनांक 01/01/2015
IX. फा.स.ं पीएनजीआरबी/एनजीपीएल/रेग् यलु िे न//अमेंड-2015 ददनांक 22/05/2015
X. फा.स.ं .िीकेएस/डीबी/03/एनजीपीएलददनांक 29/03/2016
PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the 17th November, 2022
F. No. PNGRB/Auth/2-NGPL(08)/2022.—In exercise of the powers conferred by section 61 of the Petroleum
and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board hereby
makes the following regulations to amend the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay,
Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008, namely:-
1. Short title and commencement:
(1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to
Lay, Build, Operate or Expand Natural Gas Pipelines) Amendment Regulations, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build,
Operate or Expand Natural Gas Pipelines) Regulations, 2008,-
(1) In sub-regulation 1 of Regulation 2, -
(i) After clause (b), the following clause shall be inserted, namely: -
“(ba) “authorized capacity” means the initial design capacity of the natural gas pipeline as provided in the Letter
for grant of authorization or letter of acceptance for Central Government authorization.”;
Provided that the Board may issue amendment in the Letter for grant of authorization or letter of acceptance
for Central Government authorization in case there is any revised capacity approved by the Board in terms of clause
(g) of sub regulation (5) of regulation 5 of Petroleum and Natural Gas Regulatory Board (Determining Capacity of
Petroleum, Petroleum Products and Natural Gas Pipeline) Regulations, 2010, and such revised capacity approved by
the Board shall be considered as the amended authorized capacity of the pipeline.
(ii) In sub-clause (i) of clause (h), the word „origin‟, shall be substituted by the word “injection”.
(iii) In sub-clause (ii) of clause (h), the word “including”, shall be substituted by the word “includes”.
(iv) In sub-clause (ii) of clause (h), the words under the explanation, starting with “the point of origin and…..”
and ending with “…….or fixation of the natural gas pipeline tariff by the Board.‟, the following shall be substituted,
namely: -
“the entity shall submit to the Board, information regarding various tariff zones and their sequential numbering in the
natural gas pipeline from each point of injection.”
(2) In regulation 12, -
(i) Sub-regulation (1) shall be deleted.
(ii) Sub -regulation (2) shall be substituted as follows:
“In case it is proposed to expand the capacity of the natural gas pipeline, the entity shall submit a proposal for
consideration of the Board and the Board may allow for expansion of the capacity in the natural gas pipeline”
(iii) Sub regulation (3) shall be substituted as follows;
“The provisions regarding expansion of capacity in natural gas pipeline under the above sub-regulation shall be4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
applicable to all natural gas pipelines either authorized by the Board under regulation 4, 18, 19 or accepted under
regulation 17 as authorized by the Central Government:
Provided that the Board may alternatively invite bids in place of such proposed expansion, if it is opined by the Board
that invitation of bids shall serve one or more of the following objectives, namely:-
(i) promoting competition among entities;
(ii) avoiding infructuous investment;
(iii) maintaining or increasing supplies or for securing equitable distribution or ensure adequate availability of
natural gas throughout the country;
(iv) protection of customers‟ interest in terms of availability of natural gas at reasonable natural gas pipeline
tariff;
(v) incentivizing rapid development of natural gas pipeline infrastructure.”
ANIL KUMAR GARG, Jt. Adviser (Admin)
[ADVT.-III/4/Exty./411/2022-23]
Footnote: Principal regulations were notified vide GSR 340 (E) dated 06/05/2008 and amended vide:
i) GSR 802 (E) dated 19.11.2008
ii) GSR 769 (E) dated 20/10/2009
iii) GSR 38 (E) dated 18/01/2010
iv) GSR 480 (E) dated 07/06/2010
v) GSR 594 (E) dated 09/07/2010
vi) F. No. PNGRB/M (C)/48 dated 17.02.2014
vii) F. No. PNGRB/NGPL/REGULATIONS/AMEND-2014 dated 08/08/2014
viii) F. No. L-MISC/VI/I/2007 dated 01/01/2015
ix) F. No. PNGRB/NGPL/REGULATIONS/AMEND-2015 dated 22/05/2015
x) F. No. VKS/DB/03/NGPL dated 29/03/2016
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.