India’s gas economy is facing severe constraints owing to stagnant domestic output. While a high-level panel recently backed pricing freedom, issues relating to regulation of pipeline networks also need addressing. Against this backdrop, there are plans to amend the PNGRB Act. Rajat Mishra takes a look at the gas-economy norms.
Regulation of the gas sector
The directorate General of Hydrocarbons monitors upstream operations. It enforces production/revenue-sharing contracts with private operators. In the downstream sector, the Petroleum and Natural Gas Regulatory Board (PNGRB), set up under the PNGRB Act, 2006, regulates the laying/expanding of transmission pipelines for gas and petroleum and city/local gas-distribution networks.
