GAIL (India) Limited on March 26 said that it has received approval from Petroleum and Natural Gas Regulatory Board (PNGRB) for capacity expansion of its Dahej-Uran-Dabhol-Panvel (DUPL-DPPL) Natural Gas Pipeline network. With the approval, GAIL will be able to enhance the capacity of the pipeline from the current 19.9 MMSCMD to 22.5 MMSCMD, for transportation of higher natural gas.
GAIL’s business growth and operational efficiency will significantly benefit from capacity expansion, which will grow along with the increasing demand for natural gas. PNGRB’s approval will be valid for three years from the date of communication, which should be sufficient time for GAIL to execute the expansion.
As a follow up, the PNGRB has been revising the Natural Gas Pipeline Tariff Regulations, 2008 recently to improve the tariff structure and introduce efficiencies in the industry.
The proposal and order has opened up a public comment period, welcoming industry feedback on the proposed amendments, due April 11. A recommendation from an industry committee on how to align tariff-related regulations in the natural gas sector were recently submitted, providing a market outlook and insights to enhance the smooth going of the market.
The PNGRB’s move to amend the provisions of the regulation of tariff fitted with its objective of ensuring fair pricing, improving transparency and encouraging the sustainable development of the natural gas sector. The move is in line with the aim of expanding the natural gas infrastructure in India and promoting a more competitive and efficient energy market.
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