The petroleum and natural gas regulatory board (PNGRB) is working on an open access formula to develop the city gas distribution network in a time-bound manner using the main trunk pipelines. PNGRB chairman L Mansingh told FE that to set up a city gas distribution network across the country, PNGRB is arranging for ?non-discriminatory access to trunk pipelines or offering open access.? ?The existing 8,000-km pipeline network across the country as well as an additional 8,000 km, including regional grids being laid, will be declared as the national or trunk pipeline through which the open access will be facilitated,? Mansingh said.
The trunk pipelines, after meeting the dedicated and contract supplies, would have to keep 33.5% of the capacity for un-contracted supplies or open access, which would help develop the city distribution network.
If capacities of the existing pipelines were found inadequate to keep 33.5% capacity free after meeting the dedicated and contracted supplies, PNGRB would ask the owner of trunk pipelines to enhance capacities. Currently, the government-owned GAIL owns an 8,000-km pipeline across 15 states. Reliance Industries is also implementing the Kakinada-Ahmedabad and south India pipeline network. Regional pipeline network exists in Gujarat, Andhra Pradesh, Assam and Tripura.
Mansingh said third parties (non-contracted suppliers) would require PNGRB approval to avail of open access facilities or to get access to the pipeline infrastructure. But the Pipeline Access Code needs to be defined for third party access on a pipeline-to-pipeline basis. He said PNGRB would fix the open access tariff and lay conditions for it. It is preparing the regulations, expected to be notified shortly.
According to PNGRB member BS Negi, the open access would boost competition in setting up the city gas distribution network, for which there has been 71 responses to an expression of interest floated in 2008.
At present, the city gas distribution covers 25 geographical locations. The number is expected to be more than 80 in the next three years. Of India?s current total gas consumption of 107mmscmd, city gas consumption is only 11.35 standard cubic meters.