The Petroleum and Natural Gas Regulatory Board (PNGRB) on Thursday released a unified tariff structure for over a dozen pipelines, including GAIL’s network of seven pipelines, with the aim of making natural gas more affordable to users far from the source of natural gas or import terminals. The move is part of the government’s efforts to boost gas consumption in the country.
According to experts, the move, which sets a fixed tariff for the first 300 km distance from the source of gas and a fixed tariff for distances over 300 km on the same integrated pipeline network, will lead to significantly higher usage of gas in areas far from LNG terminals and sources of natural gas clustered on the west coast of the country.
“These regulations have set the ground for gas consumption to go up for people in far flung areas of the country,” said Vivekanand Subbaraman, analyst at Ambit Capital.
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