The Petroleum and Natural Gas Regulatory Board (PNGRB) has fixed transportation tariff of GAIL India’s main trunk natural gas pipeline at half of what the state-owned firm wanted.
The PNGRB in its transportation charge order for the 3,452 km long pipeline originating from Hazira in Gujarat and going up to Jagdishpur in Uttar Pradesh via Vijaipur in Madhya Pradesh (called HVJ pipeline) fixed levelised tariff for the integrated pipeline at Rs 41.11 per million British thermal unit (mmBtu).
This was lower than Rs 97.04 per mmBtu tariff that GAIL had sought, citing a capex spending of Rs 24,708 crore over the economic life of the pipeline lasting till 2035.
GAIL India is India’s principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications.
