Natural Gas Pipeline Tariffs: Existing pacts under stress, industry says will mount legal challenge
The new unified natural gas pipeline tariff regulations notified by the Petroleum and Natural Gas Regulatory Board (PNGRB) may lead to a rise in tariff for a majority of users such as steel and fertiliser plants, which could result in an upward revision in the government’s subsidy spend on urea.
The tariff regime notified by the current two-member PNGRB will likely face legal challenges due to the impact of the new norms on existing agreements between suppliers and consumers of natural gas, including commercial agreements inked by pipeline developers after bagging projects through a competitive bidding process, according to multiple industry players who spoke to The Indian Express.
