The Hindu Business Line : Draft gas pipeline policy put on hold

As per the draft policy, gas has to be transported through a network of pipelines laid with the authorisation granted by the regulator through a transparent mechanism.

New Delhi , Oct. 23

THE Petroleum Ministry has put on hold the draft pipeline policy till the Petroleum and Natural Gas Regulatory Board (PNGRB) Bill gets the Cabinet approval.

This, in effect, would mean that companies laying pipelines for transportation of gas would have to wait a little longer for a policy that would provide a proper linkage between gas sources and market centres, along with inter-connectivity for regions, consumers and producers.

The policy envisages the appointment of a regulator under the PNGRB Bill for regulating the transmission, distribution, supply, and storage system for natural gas/liquefied natural gas and for promoting the development of the sector. The regulator would ensure access to gas pipelines, based on a non-discriminatory common carrier principle for all users. It would also approve the pipeline tariff for the common carrier pipelines.

A Senior Petroleum Ministry official said that at the recent meeting to discuss the draft pipeline policy, a decision was taken to wait till the Bill would get approved, as the draft policy has provisions that are linked to the proposals in the Bill.

Transparency: The regulatory Bill is at an advanced stage of consideration and the Group of Ministers examining it is expected to meet early next month. As per the draft pipeline policy, gas has to be transported through a network of pipelines laid with the authorisation granted by the regulator through a transparent mechanism.

Disputes: At the meeting, the Ministry also considered issues on which the policy was currently silent. This included the law that would be applicable in the case of a dispute under different circumstances, including between the players. The Ministry is looking into the technicalities of these issues and a decision is likely to be taken soon, the official added.

The official indicated that the Government is proposing to open up the sector by allowing open bidding for future pipeline projects. The Government is also considering doing away with the cost-plus approach adopted hitherto by pipeline companies for the calculation of transportation charges. Pipeline companies could be allowed to offer competitive rates within a set ceiling.

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