India's Gas Market Modernization: Innovations and Reforms
Key Ideas
- The Petroleum and Natural Gas Regulatory Board aims to transform the Indian Gas Exchange into a global platform with new products like compressed biogas (CBG) and innovative contract structures.
- Plans include allowing CNG stations to co-retail petrol and diesel to enhance commercial viability and introducing a petroleum products exchange for transparent trading.
- PNGRB is focusing on promoting pipeline transportation of petroleum products, establishing a National Product Pipeline Grid, and preparing for hydrogen transportation and blending.
- The regulator is working towards a unified tariff regime, simplifying pipeline tariff structures, and improving transportation costs for city gas distribution companies.
In an effort to modernize India's natural gas market, the Petroleum and Natural Gas Regulatory Board has outlined significant reforms. The board plans to transform the Indian Gas Exchange into a globally regional gas exchange with new products like compressed biogas (CBG) and innovative contract structures. Additionally, there are plans to introduce a CBG certificates scheme to support government obligations.
The regulator also aims to enhance the commercial viability of existing CNG/LCNG stations by allowing them to co-retail petrol and diesel. Furthermore, a petroleum products exchange is in the works to provide a transparent and efficient trading environment.
PNGRB is keen on promoting pipeline-based transportation of petroleum products on a common carrier model and preparing for hydrogen transportation through pipelines and blending with natural gas. The Board also plans to set up a National Product Pipeline Grid for increased energy logistics resilience.
Other initiatives include establishing a unified tariff regime and simplifying pipeline tariff structures to reduce transportation costs and improve margins for city gas distribution companies. Overall, these reforms are designed to enhance market competitiveness and streamline operations in the Indian gas sector.
Topics
India
Infrastructure
Energy Market
Pipeline Transportation
Market Competitiveness
Commercial Viability
Petroleum Products
Regulatory Reforms
Tariff Regulations
Latest News