New licence norms for gas pipelines

Written by fe Bureau | New Delhi | Updated: Jun 30 2010, 06:37am hrs
The Petroleum and Natural Gas Regulatory Board (PNGRB) issued licence rules for companies laying gas pipelines. The rules come even as the petroleum ministry takes a final call on who will be the regulator for the sector, which is becoming a critical part of India's energy map.

The detailed norms say that entities like Indraprastha Gas, which started operations with the Centres permission before the Board was set up, need not require PNGRB's approval now, although the regulator would monitor these entities' performance in laying pipelines. But new companies planning to enter city gas distribution and transportation of natural gas will come under the purview. PNGRB chairman L Mansingh recently said his office would ensure that the entire country gets piped natural gas within three years after it gets the proper regulatory power.

The new guidelinesPNGRB (authorising entities to lay, build, operate or expand petroleum and petroleum products pipelines) Regulations, 2010will come into force after it is published in the government's official gazette, the Board has said.