PNGRB retracts announcements designating 54 city gas networks as common carriers

04 Jun 2024 CW Team

In an effort to put an end to a legal battle between the regulator and the impacted city gas distributors, the Petroleum and Natural Gas Regulatory Board (PNGRB) has withdrawn notices to declare city gas networks in 54 licensed areas as typical carriers.

The PNGRB revised its April guideline that had formed the basis for notices to 54 city gas licensees in 2021 with a new one, repealing the prior one that had stated networks to be common carriers. The agency stated that it made the decision to remove all of those notices because the previous guideline was revoked.

Regarding the notices, city gas license holders have been suing the PNGRB in court. Companies will immediately withdraw their cases if notices are withdrawn, according to sources with knowledge of the situation. However, the people said that the regulator may once more take action to designate the networks in the licensed areas that have long past their exclusivity period as common or contract carriers. This would be required to promote fair competition among suppliers, lower consumer costs, and increase the nation's gas consumption. India aims to raise the proportion of natural gas from the current 6% to 15% in the main energy mix by 2030. Any further legal challenge to the PNGRB's declaration of the city gas network as a common carrier could come from the argument that licensee profits would be reduced if the monopoly were to be given up.

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