LNG terminals will have to register with PNGRB

Oil regulator PNGRB has proposed that new LNG import terminal in the country should reserve a fifth of the capacity for third-party access on common carrier principle.

The Petroleum and Natural Gas Regulatory Board (PNGRB) issued draft regulations for setting up and operation of liquefied natural gas (LNG) terminals in the country. Comments on the regulations have been invited from stakeholders by month end.

Energy companies wishing to set up LNG terminals in India will have to first apply for a registration to the Board in a scheduled format.

The firm will have to "offer at all times, after registration, 20 per cent of its short-term (less than 5 years contract) uncommitted re-gasification capacity or 0.5 million tonnes per annum (MMTPA), whichever is higher, as common carrier capacity," it said.

This capacity can be booked by a third party to import their own LNG.

Besides adhering to its technical standards and specifications of the Board, the company setting up the LNG terminal would have to "furnish a bank guarantee for an amount equal to 1 per cent of the estimated project cost of the LNG terminal or Rs 25 crore whichever is less."