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ARTICLE · 04 DECEMBER 2019

Natural Gas Captive Pipelines- Unregulated Domain?

The Petroleum and Natural Gas Regulatory Board (Authorizing entities to lay, build, operate or expand natural gas pipelines) Regulations, 2008 contemplates that capacity of ‘natural gas pipelines' ...

IndiaEnergy and Natural Resources

1. Are 'captive' and 'dedicated' natural gas pipelines the same concept?

  • The Petroleum and Natural Gas Regulatory Board (Authorizing entities to lay, build, operate or expand natural gas pipelines) Regulations, 2008 ('2008 Authorizing Regulations') contemplates that capacity of 'natural gas pipelines' proposed to be laid, has to be on a 'common carrier' basis or a 'contract carrier' basis. The term 'natural gas pipeline' does not contemplate capacity utilisation on a 'captive' basis or 'dedicated' basis.
  • At the time of introduction of the Petroleum and Natural Gas Regulatory Board Bill, 2005 (enacted as the Petroleum and Natural Gas Regulatory Board Act, 2006 ('2006 Act')), the Legislature was well aware of the existence of the various categories of pipelines. The Guidelines for laying Petroleum Products Pipelines dated November 20, 2002 ('2002 Notification') treated the following 2 categories of pipelines as falling under 'captive pipelines' i.e. for exclusive

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