India’s new pipeline tariffs to boost gas use in far-flung areas

India will cut gas pipeline tariffs for areas far from gas injection points as the nation seeks a cleaner fuel-led industrial development across the country, an official at the Petroleum and Natural Gas Regulatory Board said.

Differential pipeline tariffs is one of the key reasons for uneven gas use in the country, which aims to raise its share in energy consumption to 15 per cent by 2030.

Gas accounts for about a quarter of energy-mix of the western state of Gujarat, which hosts three liquefied natural gas (LNG) import terminals and is near to gas producing fields, compared to the national average of 6.2 per cent.

“Customers will be paying single tariff if they are linked to the national gas grid of more than 15,000 km. This will help customers in the north, northeast and eastern part of the country,” Board member Satpal Garg said on Friday.

The new rules are expected to come into force in next 2-3 months, he said.

At present, the tariffs are linked to the distance and the number of pipelines used for transportation of gas from the injection points, making the fuel costly for many industries and hurting the development of far flung areas.

“The new structure will be beneficial for all industries using multiple pipelines for gas purchase,” he said.

ET Energy World
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