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Time of India
2 days ago
- Business
- Time of India
PNGRB rolls out LNG Terminal Regulations 2025; mandatory charge disclosure, pre-FID filings now required
New Delhi: With capacity utilisation at newer LNG terminals stuck around 28 per cent and concerns over uncoordinated infrastructure build-up rising, the Petroleum and Natural Gas Regulatory Board ( PNGRB ) has notified the LNG Terminal Regulations 2025 —a sweeping framework that mandates registration, public disclosure of terminal charges, and pre-investment submissions for all entities setting up or operating LNG terminals in India. The regulations, finalised in May 2025 after public consultations in August 2024, are applicable to all LNG terminals established on or after October 1, 2007. The move is aimed at integrating terminal planning with gas market needs, improving transparency, and resolving inefficiencies that have led to poor infrastructure utilisation. Under the new framework, LNG terminal operators must now submit a pre-investment intimation before making a final investment decision (FID). This must be accompanied by a detailed feasibility report, business and evacuation plans, and a performance bank guarantee of ₹25 crore or 1 per cent of the project cost, whichever is lower. Upon PNGRB approval, the entity will receive a certificate of registration valid for 30 years. Utilisation challenge and planning gap A key trigger for the regulation has been the poor capacity utilisation of newer LNG terminals. Data from FY16 to FY25 shows that apart from the two legacy terminals at Dahej and Hazira, other terminals have operated at an average utilisation of just 28 per cent. Several of these terminals have been promoted by state-owned companies. Currently, LNG terminals often come up with limited regulatory oversight during the early stages, and connectivity with gas pipelines is sought post-construction. This has led to creation of underutilised pipeline assets and higher tariffs, which are eventually passed on to end consumers. To address this, the regulations require terminal developers to inform PNGRB prior to final investment, enabling the regulator to assess gas demand, location suitability, and connectivity requirements before issuing pipeline authorisations. 'The regulator will ensure an integrated development through a well-coordinated plan that aligns with the overall gas sector's objective,' the regulations state. Transparency provisions introduced In a major move towards commercial transparency, the new rules require operators to disclose key charges—such as regasification fees, truck loading rates, and boil-off gas (BOG) charges—on their websites. These charges will also be accessible to PNGRB. Unlike natural gas pipelines where tariffs are regulated and published, LNG terminal charges have remained opaque until now. While PNGRB does not intend to regulate terminal tariffs, the regulations aim to empower downstream consumers by enabling informed decisions and ensuring fair market access. 'Mandating public disclosure of regasification and related tariffs, granting PNGRB access to terminal charges, and promoting equitable access to gas for all market participants' are central objectives of the new framework. Monitoring, compliance and penalties Operators will be required to submit operational data every six months—in April and October. Provisions have been made to accommodate capacity expansion and change in ownership. Non-compliance could lead to suspension, penalties, or cancellation of registration, with due process guaranteed. Impact on CGD and industrial consumers The reforms are also significant for City Gas Distribution (CGD) companies, which are increasingly reliant on LNG amid limited domestic gas supply. Following the 12th bidding round, CGD coverage now spans the entire country, excluding islands. Several CGD players have reached a point where they require nearly one LNG cargo per month and have the capacity to source gas from international suppliers. Industrial users in other sectors are also expected to seek better pricing terms and clearer access conditions in the years ahead. 'Several such customers in other sectors of industry are also coming up which would look for better pricing slopes for LNG contracts in the future. This would require not only competitive sourcing, but transparent access to re-gas slots, clearly disclosed tariffs, and robust downstream connectivity,' PNGRB stated. Way forward The regulations represent a shift toward a coordinated and demand-driven gas infrastructure ecosystem. While pipeline development has followed sectoral planning, regasification terminals have largely developed independently. By integrating LNG terminal development into the broader planning framework, the PNGRB aims to optimise infrastructure, reduce tariff burdens, and promote India's long-term energy security vision. The PNGRB, under the 2006 Act, had previously issued rules for LNG terminal registration in 2012. The 2025 regulations now reinforce and update that framework, incorporating the need for upstream-downstream alignment, better data collection, and consumer-focused transparency in a rapidly evolving gas economy.
Economic Times
20-05-2025
- Business
- Economic Times
Regulator approval must for new LNG import terminal
The Petroleum and Natural Gas Regulatory Board (PNGRB) has mandated prior approval for establishing or expanding LNG import terminals, aiming to boost natural gas usage to 15% of India's energy mix by 2030. While promoting competition and preventing wasteful investments, the new regulations surprisingly eliminate the requirement for reserving terminal capacity for third-party access. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The oil regulator has made it mandatory for companies planning to establish new liquefied natural gas (LNG) import terminals or expand existing ones to obtain prior approval, but dropped the requirement to reserve a portion of the terminal capacity for third-party Petroleum and Natural Gas Regulatory Board (PNGRB) has notified Registration for Establishing and Operating Liquefied Natural Gas Terminals Regulations, 2025."These regulations lay down a robust framework focused on registration and oversight of LNG terminals, (and) promotion of competition among entities and prevention of infructuous investments," the regulator said, adding that the rules are a step in alignment with India's vision of increasing the share of natural gas to 15& in the energy mix by norms also seek to ensure equitable and adequate natural gas availability across the country, protection of consumer interests through improved access and supply reliability, and facilitate infrastructure availability for evacuation of regasified LNG through entity wanting to build an LNG terminal will have to inform PNGRB before taking the final investment decision (FID). The same will have to be done for expanding the capacity of an existing LNG PNGRB nod in both cases will hinge on "promoting competition among entities, avoiding infructuous investment, maintaining or increasing supplies or securing equitable distribution or ensuring adequate availability of natural gas throughout the country, protecting customer interest and availability of gas evacuation facility from the terminal," according to the rules, however, do not contain the requirement of new LNG import facilities reserving a fifth of the capacity for third-party access on a common carrier principle.
Time of India
19-05-2025
- Business
- Time of India
Regulator approval must for new LNG import terminal
The oil regulator has made it mandatory for companies planning to establish new liquefied natural gas (LNG) import terminals or expand existing ones to obtain prior approval, but dropped the requirement to reserve a portion of the terminal capacity for third-party access. The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified Registration for Establishing and Operating Liquefied Natural Gas Terminals Regulations, 2025. "These regulations lay down a robust framework focused on registration and oversight of LNG terminals, (and) promotion of competition among entities and prevention of infructuous investments," the regulator said, adding that the rules are a step in alignment with India's vision of increasing the share of natural gas to 15& in the energy mix by 2030. The norms also seek to ensure equitable and adequate natural gas availability across the country, protection of consumer interests through improved access and supply reliability, and facilitate infrastructure availability for evacuation of regasified LNG through pipelines. An entity wanting to build an LNG terminal will have to inform PNGRB before taking the final investment decision (FID). The same will have to be done for expanding the capacity of an existing LNG terminal. The PNGRB nod in both cases will hinge on "promoting competition among entities, avoiding infructuous investment, maintaining or increasing supplies or securing equitable distribution or ensuring adequate availability of natural gas throughout the country, protecting customer interest and availability of gas evacuation facility from the terminal," according to the rules. The rules, however, do not contain the requirement of new LNG import facilities reserving a fifth of the capacity for third-party access on a common carrier principle.
Time of India
18-05-2025
- Business
- Time of India
Regulator approval must for new LNG import terminal
The oil regulator has made it mandatory for companies planning to establish new liquefied natural gas (LNG) import terminals or expand existing ones to obtain prior approval, but dropped the requirement to reserve a portion of the terminal capacity for third-party access. The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified Registration for Establishing and Operating Liquefied Natural Gas Terminals Regulations, 2025. "These regulations lay down a robust framework focused on registration and oversight of LNG terminals, (and) promotion of competition among entities and prevention of infructuous investments," the regulator said, adding that the rules are a step in alignment with India's vision of increasing the share of natural gas to 15& in the energy mix by 2030. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates Undo The norms also seek to ensure equitable and adequate natural gas availability across the country, protection of consumer interests through improved access and supply reliability, and facilitate infrastructure availability for evacuation of regasified LNG through pipelines. An entity wanting to build an LNG terminal will have to inform PNGRB before taking the final investment decision (FID). The same will have to be done for expanding the capacity of an existing LNG terminal. Live Events The PNGRB nod in both cases will hinge on "promoting competition among entities, avoiding infructuous investment, maintaining or increasing supplies or securing equitable distribution or ensuring adequate availability of natural gas throughout the country, protecting customer interest and availability of gas evacuation facility from the terminal," according to the rules. The rules, however, do not contain the requirement of new LNG import facilities reserving a fifth of the capacity for third-party access on a common carrier principle.
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Business Standard
18-05-2025
- Business
- Business Standard
Oil regulator mandates LNG terminal registration, scraps carrier rule
The oil regulator has made it mandatory for companies planning to establish new liquefied natural gas (LNG) import terminals or expand existing ones to obtain prior approval, but dropped the requirement to reserve a portion of the terminal capacity for third-party access. The Petroleum and Natural Gas Regulatory Board (PNGRB) has notified Registration for Establishing and Operating Liquefied Natural Gas Terminals Regulations, 2025. "These regulations lay down a robust framework focused on registration and oversight of LNG terminals, (and) promotion of competition among entities and prevention of infructuous investments," the regulator said, adding that the rules are a step in alignment with India's vision of increasing the share of natural gas to 15 per cent in the energy mix by 2030. The norms also seek to ensure equitable and adequate natural gas availability across the country, protection of consumer interests through improved access and supply reliability, and facilitate infrastructure availability for evacuation of regasified LNG through pipelines. An entity wanting to build an LNG terminal will have to inform PNGRB before taking the final investment decision (FID). The same will have to be done for expanding the capacity of an existing LNG terminal. The PNGRB nod in both cases will hinge on "promoting competition among entities, avoiding infructuous investment, maintaining or increasing supplies or securing equitable distribution or ensuring adequate availability of natural gas throughout the country, protecting customer interest and availability of gas evacuation facility from the terminal," according to the rules. The rules, however, do not contain the requirement of new LNG import facilities reserving a fifth of the capacity for third-party access on a common carrier principle. PNGRB had, in the first draft rules for the LNG terminal registration in 2018, proposed firms offering "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, whichever is higher, as common carrier capacity". This capacity could be booked by a third party to import its own LNG. After opposition from the industry, PNGRB dropped the clause in another draft regulation issued in June last year. The final rules notified now are based on the draft issued last year. Companies seeking nod for setting up new LNG terminals need to "have a credible business plan for utilisation of capacity in the LNG terminal" and will need to "submit the business plan and detailed evacuation plan of LNG or re-gasified natural gas from its LNG terminal, along with copy of its approved Detailed Feasibility Report (DFR)" to PNGRB. The clause for the expansion of existing terminals is not there. As per the notified rules, PNGRB can suspend or terminate the registration of a terminal or forfeit its bank guarantee if it is found to be involved in unfair trade practices or breaching regulatory obligations. Companies also need to furnish a bank guarantee equal to 1 per cent of the estimated project cost of the terminal or Rs 25 crore, whichever is less. The regulator will approve the "completion schedule" of the LNG terminal and can impose a financial penalty on the operator for not sticking to the completion schedule. India currently has seven operating LNG terminals - a 17.5 million tonnes import facility of Petronet LNG Ltd at Dahej in Gujarat, Shell's 5 million tonnes terminal at Hazira, state-owned GAIL India Ltd's 5 million tonnes Dabhol facility in Maharashtra, Petronet's 5 million tonnes Kochi terminal in Kerala, state-owned Indian Oil Corporation's 5 million tonnes Ennore terminal in Tamil Nadu, Gujarat State Petroleum Corp's 5 million tonnes facility at Mundra and Adani Total Gas Ltd's 5 million tonnes Dhamra terminal in Odisha. "By regulating LNG terminals, PNGRB aims to ensure efficient utilisation of infrastructure, and ultimately benefit end consumers through competitive pricing and reliable supply," the regulator said.
