Home India Ministry of Petroleum and Natural Gas The Petroleum and Natural Gas Regulatory Board hereby makes ...
Date: 2014-02-17 Category: Extra Ordinary State: Union Government Country: India

The Petroleum and Natural Gas Regulatory Board hereby makes the following regulations, These regulations may be called the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2014.

Issued by Ministry of Petroleum and Natural Gas · Petroleum and Natural Gas Regulatory Board

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Executive Summary & Key Takeaways

Executive Summary: This document contains four notifications from the Petroleum and Natural Gas Regulatory Board (PNGRB) regarding regulations for natural gas pipelines. These regulations address imbalance management services, tariff determination, and access codes. The regulations come into force on the date of their publication in the Official Gazette. Key Points / Main Content: Imbalance Management Services Regulations, 2014: Applicability: Applies to natural gas pipelines covered under specific regulations from 2008. Service Provision: Transporters must provide imbalance management services (deferred delivery) if technically feasible. Non-Discrimination: Services must be offered without discrimination, not affecting existing gas transportation agreements. Fees: Transporters may charge a fee for imbalance management services, capped at 25% of the applicable transportation tariff. Revenue Retention: Revenue from these services can be retained by the transporter. Denial of Service: Reasons for denying service must be provided to the shipper. Reporting: Transporters must report details of services and revenue to the Board annually. Natural Gas Pipeline Tariff Amendment Regulations, 2014: Amendment: Modifies Schedule A of the 2008 regulations regarding tariff determination. Miscellaneous Income: Clarifies that miscellaneous income, excluding income from imbalance management services, interest income, or profit/loss from asset sales, shall be netted from the operating cost. Access Code Amendment Regulations, 2014: Amendment: Amends the 2008 regulations concerning access codes for natural gas pipelines. Imbalance Management Services Definition: Defines "Imbalance Management Services." Service Provision: Transporters must provide Imbalance Management Services to the extent technically and operationally feasible, according to the Board's regulations. Authorizing Entities Amendment Regulations, 2014: Amendment: Modifies the 2008 regulations for authorizing entities to lay, build, operate, or expand natural gas pipelines. Additional Charges: Authorizes entities to charge shippers for additional compression and Imbalance Management Services, as permitted by Board regulations. Impact Analysis: Transporters: Impact: Required to provide imbalance management services, potentially generating additional revenue, but must adhere to non-discrimination and reporting requirements. Action Required: Implement imbalance management services, establish fee structures, and report service details/revenue to the Board. Shippers (Customers, Marketers, Entities using Pipelines): Impact: Gain access to imbalance management services for managing transportation imbalances, potentially incurring fees. Action Required: Understand terms and conditions for imbalance management services, including fees, and utilize services as needed. Petroleum and Natural Gas Regulatory Board (PNGRB): Impact: Responsible for overseeing the implementation of these regulations and resolving any interpretive questions. Action Required: Ensure compliance with regulations, address interpretive questions, and potentially undertake pilot projects for additional imbalance management services.

Key Entities Referenced

Petroleum and Natural Gas Regulatory Board: A regulatory body in India responsible for overseeing 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. New Delhi: The location where the notification was issued. Petroleum and Natural Gas Regulatory Board Imbalance Management Services Regulations, 2014: Regulations pertaining to imbalance management services in the natural gas sector. Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008: Regulations concerning the authorization of entities involved in natural gas pipeline infrastructure. Gas Transportation Agreement: An agreement between a transporter and a shipper for the transportation of gas. Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Regulations Regulations, 2008: Regulations concerning determination of natural gas pipeline tariff. Petroleum and Natural Gas Regulatory Board Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines Amendment Regulations, 2014: Regulations concerning access code for common carrier or contract carrier natural gas pipelines.
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Wateal Wa, THT (3) [fersrrter 11/4/37 ATETLOT/ 188/13] PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, the !7th February, 2014 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, 2014. (2) These regulations shall remain applicable till 31" March 2016. (3) They shalt come into force on the date of their publication in the Official Gazette. 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@) “Imbaiance 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; @) “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 anon-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 scrvice 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. (3) 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) Incase 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 (8) y Te ha er. 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. 1/4/Exty./188/13] after aé feecht, 17 teat, 2014 wT. &. dreasharedvea(shy4s.— tetera att wreicas the faferarrn ats afOferar, 2006 (2006 ar 19) AT at 64 Zan weed aeeat wr water ad gu asic at wpiae ae 1. Bfarear ara ath oar (1) gat fafetaat at deter sik orpiae te fafranre as Crpice te greg Atte ar freien) Geitrr fafersa, 2014 Her STAT]Cart -wers 4] FRG Fl USA: STATE 5 (2) & aeent woray F ser vareret Fr atte a weed et (2) wapah-w a aeitert Veer sik wepicts the fateenae até (opin ser osverge thw fafraat ar Reker) - fafa, 2008 At seperit-a a tr 5 & sath (8) & fav feafaf@a wieeenfta Pra "(8) free Ar aS Ha dol oe vfaerey A enfAa faa oftiafea B a wares are, fare forse ar ater aR fecr sr fash ar siereor B gw aa aT etl enfta a a, & ey A haw ae cag FS ora fafaer ava a wares aera Ae STI" H. Wareart Wa, HeMS(ZT) [faarget 11/4/3eTROT/ 188/13] mre feeaoft : Her faferaat et ara. fet. 807(3), feet 20/11/2008 gant aftefee fren ae ar HR acweae, arr fey. 986(3), feta 20/12/2010, wre. dreasiamdveaan igerer Bh cpigtetar Fetes 30/05/2012 cer wT. &. drearafaaea(thy2012, exe 13/09/2012 eanr aeititra fear ara aI , NOTIFICATION New Delhi, the [7th February, 2014 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 (Determination of Natural Gas Pipeline Tariff) Amendment Regulations, 2014. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Amendment of Schedule A. For sub-para (8) of para 5 of the Schedule A of the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff Regulations) Regulations, 2008, the following shall be substituted, namely:- “(8) Miscellaneous income realizable from a fixed asset included in the return on total capital employed or out of an expense considered as an operating cost, but not including income from imbalance management services under relevant regulations of the Board, interest income, profit or loss on sale - or transfer of any fixed or other asset, shall be netted from the operating cost.” K. RAJESWARA RAO, OSD(R) [ADVT III/4/Exty./188/13] Foot Note: Principal tegulations were notified vide GSR 807(E), dated 20/11/2008 and subsequently amended vide GSR 986(E) dated 20/12/2010, F. No. PNGRB/M(C)/1 1/Final Tariff Filing dated 30/05/2012 and F. No. PS/Secy./M(C)/2012, dated 13/09/2012. gu sal - [)4-6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART Hi—SEC. 4] afitraeer ag fare, 17 wat, 2014 am. wi. dreastarcabrean(aty48.—aghiaraat atte orepferes ahr faterarra ats afters, 2006 (2006 @r 19) # ene 61 aanT wart ofeerat ar water set ge aetiea ste wrpfee ae 1. Sifter arr site ores () aq tant wy aelaear atte orpite the fafreras ats (eter age a afer aren urpiaa thr wigangat & fare srfdterr ats) wetter fafetaa, 2014 er area | (2) 3 wean gaa A sah veers Hr athe A sara eT 2, faftraat 2 sity faferar 13 A aeteret gata ai weiter ate Rian aS camner a wifaer arew opie Ae oreTaTgat & far afer ais) faferaet 2008 A - ; . (®) aan 2 a, wos (|) & ae Arafafaa wos at ater are, Heel - s(t w) areiqaer water darait" ar ant ger aarait BS st areata Ares aT as a aaa Guat & staat caafeera dor A Saw aeeaeet HT veer aA A TRA aereht 1 (@) fafa 13 A, so-faferar (12) & a, feafafaa sefafrar aT sist Ae, “(gy greratéx, até dare faitrat a siacter areiguer weet Aaraih SY Sera aaatéy att warsarcra eaagrtar ht Arar da STAT HUTT" | & Wareat Ua, HTH) pferarrter 0/4/3TATeAROT/ 1 88/13] ore feoooh : ae fafraat a rare. 541(37), Pte 17/07/2008 gant aferafaet Pear rar a 3 academia BALA. 274(3), feat 21/04/2009 cant Benita rear sar atl NOTIFICATION RegulatorF y. N Bo o. a rP dN AG cR t,B / 2M 00( 6C ) (/ 194 8 of. — 20 I 0n 6 )e ,x N e tre hc ew i s PeD e e tol rfh oi t, lh eet u h p me o aw1 ne7 drt sh N acF toe unb rfr aeu lra rr Gey ad, s b2 y0 R e1 S g4 e uc lt ai to on r 6 y1 B oo af r t dhe h P ee rt er bo yl meu am k ea sn d t hN ea t fu or la ll o wG ia ns g regulations, namely:— 1. Short (t 1it )l e Ta hn ed s c eo rm em ge un lac te im oe nsn t m. ay be called the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Amendment Regulations, 2014. (2) They shall come into force on the date of their publication in the Official Gazette. 2, A Inm e thn ed m Pee tn rt o lo ef u r me g au nl da t Ni ao tn u 2 r aa ln Gd ar se g Ru ela gt ui lo an t o1 r3. y Board (Access Code for Common or Contract Carrier Natural Gas Pipelines) Regulations, 2008, -(3 Wi-ers 4] Te AT UTA: TST 7 (a) in regulation 2, after the clause (1), the following clause shall be inserted, namely:- “(la) Imbalance Management Services” means such services that enable customers or shippers to manage their imbalances in an orderly fashion under the relevant regulations of the Board;” (b) in regulation 13, after sub-regulation (12), the following sub-regulation shall be inserted, namely:- “(13) A transporter shall provide, under the relevant regulations of the Board, Imbalance Management Services to the extent it is technically and operationally feasible.”. K. RAJESWARA RAO, OSD(R) [ADVT. IIl/4/Exty/188/13] Foot Note : Principal regulations were notified vide GSR 541(E), dated 17/07/2008 and subsequently amended vide GSR 274(E), dated 21/04/2009. ae fveht, 17 waft 2014 wr. a. Sieashanrdirea(aty48.— etic. att orpice tte fate ats afters, 2006 (2006 ar 19) #1 unt 61 GENT Weed eeerat ar valet aed ge Uelferar atx opie she (1) ga faferaat at agticaa ai opie the fate até (repfae te osvenset a fear, rater, Taree or fara arr & fee aoferat at oft see) cetera faferaa, 2014 Her SIvaT (2) aed torra FF serch pare Ft arta a sged ght 2. afer 11 a deter: Taio att apie the fata ats Grpfte te ogcergat at front, trator, Were ot KAR ater a fore Haferat at wile sxen) faferss, 2008 & faferaa 11 4, 3u-faferan (4) & are, faeafeaa so-fan a ater ore, araa:- "(®) wpa aoeh at, Rage then & gera, so-fafeaa 4 Ff sfeafaa xfahted aoe wa & fre Row a were cet ae ats & Gara fafraat H siesta septa PAN Heer water Hare set Hr sreqAia ett” H. WHat Va, aiwaer (3m) [Ferret 1/4/STATEROT/ 188/13] are fecqofh: ayer Pafererat ar eran fr. 340(3n, feet 06/05/2008 gant aftrafaa fren aver a HR acaae aLarfa. 802(37), fate 19/11/2008, ararfa. 769(31), feaie 20/10/2009, Sant fet, 38(3n, fects 18/01/2010, erarfa. 480(3, fetter 07/06/2010 acer anarfe. 594(39), fester 09/07/2010 cant dente fra svar eri8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART HfI—SEc. 4] NOTIFICATION New Delhi, the 17th February, 2014 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 calied the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Amendment Regulations, 2014. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Amendment of regulation 11. In regulation 11 of the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate of Expand Natural Gas Pipelines) Regulations, 2008, after sub-regulation (4), the following sub-regulation shalt be inserted, namely:- “(5) The authorized entity will, in addition to transportation tariff, be allowed to charge shippers for additional compression charges mentioned in sub-regulation 4 and Imbalance Management Services as allowed under the relevant regulations of the Board.” K. RAJESWARA RAO, OSD(R) [ADVT. I1/4/Exty./188/13] Foot Note: Principal regulations were notified vide GSR 340(E), dated 06/05/2008 and subsequently amended vide GSR 802(E), dated 19/11/2008, GSR 769(E), dated 20/10/2009, GSR 38(E), dated 18/01/2010, GSR 480(E), dated 07/06/2010 and GSR 594(E), dated 09/07/2010. Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Dethi-110064 and Published by the Controller of Publications, Delhi-1 10054.

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