Delhi High Court grants interim protection to LNG terminal operators

Court grants interim relief to LNG operators challenging new registration norms under PNGRB's 2025 regulations

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The Delhi High Court has granted interim protection to Petronet LNG Limited (PLL) and GSPC LNG Limited (GLL) from coercive action under the Petroleum and Natural Gas Regulatory Board’s (PNGRB) Registration Regulations, 2025.

 

Last month, the PNGRB introduced regulations mandating that companies intending to either set up a new LNG terminal or expand existing capacity must register with the regulator. The regulator will issue a registration certificate only after reviewing their detailed feasibility report, business plan, and evacuation strategy, as mandated in the new regulations.

 

The regulations, which were challenged by PLL and GLL, were notified on May 8, 2025, and are effective from May 13, 2025. They require the registration of all entities establishing or operating LNG terminals across India, including facilities in Dahej, Mundra (Gujarat), and other locations. 

 

PLL and GLL have also challenged the PNGRB (Eligibility Conditions for Registration of Liquefied Natural Gas Terminal) Rules, 2012. The petitioners argued that the Rules and Regulations unlawfully equate registered LNG terminals to common carrier infrastructure, a classification not envisioned under the parent statute, the PNGRB Act, 2006. The petitioners also argued that the requirement under the new regulations to disclose confidential information goes beyond the scope of the parent Act.

 

The division bench of the court observed that, for now, the petitioners are not required to seek registration under the challenged regulations and ordered that no coercive steps shall be taken against the petitioners for non-registration or non-submission of information under the 2025 Regulations. The issue of whether 'confidential' information can be sought by the PNGRB will be decided later by the court.