LNG operators push back against PNGRB’s attempt to regulate them

Liquefied natural gas (LNG) operators Petronet LNG, Shell and Adani-Total are pushing back against the attempts of the Petroleum and Natural Gas Regulatory Board (PNGRB) to regulate them.

The board unveiled the draft regulations for establishing and operating LNG terminals last month. Terminal operators, big gas consumers and others have now offered their views on the draft.

Terminal operators have questioned several provisions in the draft mainly on the grounds that those are not in sync with the parent legislation, PNGRB Act, which lays out the regulator’s powers.

Big gas consumers like Bharat Petroleum Corp (BPCL), AG&P City Gas and steelmaker AM/NS also opposed the regulator’s move. “Entity should not be asked to approve a detailed feasibility report, plant capacity utilisation, evacuation plan, etc., because (the) entity itself is risking his capital to invest (in the) LNG terminal,” BPCL said.

AG&P said the “regulation of LNG terminal at this stage, with the burden of administrative processes, scrutiny & fees, compliances, etc., may discourage the new entrants from setting up new LNG terminals in the country”.

AM/NS said, “The Act does not confer any power to the board to allow/disallow any capacity expansion of the LNG terminal”.