Image courtesy of Petronet LNGIndia’s Petroleum and Natural Gas Regulatory Board (PNGRB) issued draft regulations requiring LNG terminal developers to register with the regulator.
Under the draft regulations, besides registering with the board in a scheduled manner, any company looking to set up LNG import terminals will have to offer 20 percent of its short-term regasification capacity or 0.5 mtpa, whichever is higher, as “common carrier capacity.”
This would allow third-party access to the terminal, enabling companies to import their own LNG volumes.
The proponents will also have to adhere to the technical standards and specifications prescribed by the board, the draft notice reads. In addition, developers will have to provide a financial guarantee equal to 1 percent of the estimated project cost.
In case the company is looking to develop more than one LNG terminal, the PNGRB draft regulations would require it to file separate applications for each proposed project.
Approved applications will have a term of 25 years, with an option for the board to extend these certifications of registration for additional 10-year terms upon expiry.
PNGRB also issued a public notice calling for stakeholders to comment on the draft regulations for registration for establishing and operating liquefied natural gas (LNG) terminals.