Executive Summary:
This document outlines the Petroleum and Natural Gas Regulatory Board's regulations for Imbalance Management Services, effective from April 29, 2016, until March 31, 2018. It defines key terms, specifies applicability, and sets terms for transporters providing imbalance management services to shippers. The regulations aim to facilitate shippers in managing transportation imbalances.
Key Points / Main Content:
* **Definitions:**
* Defines key terms such as "Act," "Board," "GTA," "Imbalance Management Services," "shipper," and "transporter."
* **Applicability:**
* Applies to natural gas pipelines covered under specific regulations outlined in the Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008.
* **Terms and Conditions for Imbalance Management Services:**
* Transporters shall provide imbalance management services (deferred delivery) to shippers, to the extent technically and operationally feasible, to manage transportation imbalances.
* These services must be provided on a non-discriminatory basis, without affecting existing gas transportation agreements.
* Transporters may charge a fee for imbalance management services, based on the number of days the service is utilized.
* The charge for imbalance management services shall not exceed 25% of the applicable transportation tariff for the relevant natural gas pipeline.
* Revenue from imbalance management services can be retained by the transporter, above the transportation tariff.
* Reasons must be provided if a transporter denies a shipper's request for imbalance management services.
* Transporters must report details of imbalance management services and revenue to the Board annually, certified by a Chartered Accountant, within 60 days of the financial year-end.
* The Board may allow transporters to undertake pilot projects for other imbalance management services.
* **Interpretation:**
* The Petroleum and Natural Gas Regulatory Board will decide on any questions regarding the interpretation of these regulations.
Impact Analysis:
* **Transporters:**
* Impact: Required to provide imbalance management services, manage agreements with shippers, determine and charge fees for services (within specified limits), and report service details and revenue to the Board. They are also given the potential opportunity to undertake pilot projects for other imbalance management services.
* Action Required: Implement imbalance management services, establish agreements with shippers, set charges, track service usage, and report to the Board.
* **Shippers:**
* Impact: Can utilize imbalance management services to manage transportation imbalances and may be charged a fee for these services.
* Action Required: Engage with transporters to utilize imbalance management services, agree on service terms and charges, and manage their gas transportation imbalances.
* **Petroleum and Natural Gas Regulatory Board:**
* Impact: Responsible for overseeing the implementation of these regulations, interpreting them as needed, and potentially approving pilot projects for new imbalance management services.
* Action Required: Enforce the regulations, provide interpretations, review transporter reports, and consider pilot projects.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board: A regulatory body established by the Government of India to oversee the petroleum and natural gas sector.
Petroleum and Natural Gas Regulatory Board Act, 2006: The legislative act that established the Petroleum and Natural Gas Regulatory Board and defines its powers and functions.
Petroleum and Natural Gas Regulatory Board Imbalance Management Services Regulations, 2016: Regulations pertaining to the management of imbalances in natural gas supply and transportation.
Gas Transportation Agreement: An agreement between a transporter and a shipper for the transportation of gas.
Central Government: The government of India.
Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008: Regulations governing the authorization of entities involved in natural gas pipeline infrastructure.
Official Gazette: A publication of the Government of India that contains official notifications, rules, and regulations.
New Delhi: The location where the notification was issued.
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2096 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
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[िव_ापन-III/4/असा./51]
PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the 29th April, 2016
F. No. PNGRB/M(C)/48.—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, namely:—
1. Short title and commencement
(1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Imbalance
Management Services) Regulations, 2016.
(2) These regulations shall remain applicable till 31st March, 2018.
(3) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions
(1) In these regulations, unless the context otherwise requires,—
(a) “Act” means the Petroleum and Natural Gas Regulatory Board Act, 2006;
(b) “Board” means the Petroleum and Natural Gas Regulatory Board established under sub-
section (1) of section 3 of the Act;
(c) “GTA” means Gas Transportation Agreement between transporter and shipper;
(d) “Imbalance Management Services” means such services that enable customers or shippers
to manage their imbalances in an orderly fashion;
(e) “shipper” means a consumer, a marketer or any entity which utilizes the capacity in the
natural gas pipeline;
(f) “transporter” means an entity authorized by the Board or authorized by the Central
Government for laying, building, operating or expanding a natural gas pipeline.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III —SEC. 4]
(2) Words and expressions used and not defined in these regulations, but defined in the Act or in the
rules or regulations made thereunder, shall have the meanings respectively assigned to them in the
Act or in the rules or regulations, as the case may be.
3. Application
These regulations shall apply to a natural gas pipeline covered under the provisions of
regulations 4, 17 and 18 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to
Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008.
4. Terms and conditions for providing imbalance management services
(1) A transporter shall provide, to the extent it is technically and operationally feasible, imbalance
management services being deferred delivery services to facilitate shippers to manage
transportation imbalances. For this purpose, a deferred delivery service is one under which a
transporter and a shipper, under a separate agreement, agree on a day-wise plan for receipt of the
shipper’s natural gas quantities into the pipeline and for its delivery by the transporter to shipper
on a deferred basis after a few days subject to pipeline capacity availability.
(2) The transporter shall provide the facility of the imbalance management services referred to in
sub-regulation (1) on a non-discriminatory basis but without affecting its ability to meet the rights
and obligations under its gas transportation agreements with other shippers.
(3) The transporter may charge a fee for providing the imbalance management services referred to in
sub-regulation (1) from the shipper utilising such service where the charge for the service shall
be based on the number of days such service is utilised.
(4) The transporter in its agreement with the shipper shall mention the charges for the imbalance
management services referred to in sub-regulation (1) but such charge shall not exceed twenty five
per cent. of the applicable transportation tariff for the relevant natural gas pipeline.
(5) The amount received by the transporter from the imbalance management services referred to in sub-
regulation (1) shall be allowed to be retained by it over and above the transportation tariff for the
pipeline in accordance with the provisions of the relevant regulations of the Board.
(6) In case a transporter denies a request from the shipper for the imbalance management services
referred to in sub-regulation (1), the reasons for denial shall be provided by the transporter to the
shipper.
(7) A transporter shall provide information on the details of the imbalance management services
referred to in sub-regulation (1) and the amount received from such services for the financial
year to the Board through a statement certified by a Chartered Accountant to be filed within sixty
days from the end of the relevant financial year.
(8) The Board may permit a transporter to undertake projects for other imbalance management services
(besides deferred delivery services) from time to time on a pilot basis with a view to include such
imbalance management services in the regulations on such terms and conditions as may be
decided by the Board.
5. Interpretation of regulations
If any question arises as to the interpretation of these regulations, the same shall be decided by the
Board.
K. RAJESWARA RAO, OSD (R)
[ADVT.-III/4/Exty./51]
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.