Gas infrastructure major GAIL seeking uniform pricing
KOLKATA (miningweekly.com) – Indian gas infrastructure major GAIL India has proposed a unified or pooled price for all its customers linked to its network of gas pipelines across the country.
GAIL says that a unified price will eliminate differential tariffs and taxes based on the distance of locations from the infrastructure major’s liquefied natural gas (LNG) terminals across the country.
It also claims that a uniform price will rectify the difference in gas prices charged for its old and new customers.
In its petition to the government, GAIL has suggested that the unified pricing regime should first be implemented for its own network and then be expanded across the pipeline network of other gas infrastructure companies.
Based on GAIL’s communication, the downstream natural gas regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has issued a consultation paper seeking the views and comments of all stakeholders.
However, the government is yet to decide whether the sector regulator will be given the mandate to determine the uniform price or whether the Ministry of Petroleum and Natural Gas will issue guidelines to work out the formula, based on which PNGRB will announce a unified price for consumers, a government official has said.
A new uniform tariff is expected to benefit GAIL, which operates LNG terminals with comparatively low capacity utilisation.
PNGRB, in its preliminary reaction, has expressed apprehension that tariffs for existing gas customers of GAIL will increase, impacting on the cost of end-use production of these customers.
However, infrastructure companies have pointed out that a tariff increase will not impact on end-use producers in sectors such as fertilisers, for instance. Fertiliser producing companies use natural gas that is subsidised by government on a cost-plus basis and these companies benefit from the ‘pass-through’ element of the current subsidy regime.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation