GAIL’s transportation tariff proposal faces strong stakeholder opposition

New Delhi: Gas Authority of India Ltd's (GAIL) proposal for transportation tariff for a Krishna Godavari (KG) basin natural gas pipeline has been resisted by stakeholders, comprising GMR group, H-Energy, and Gujarat State Petronet Limited (GSPL). Commenting on the tariff proposal hosted on the Petroleum and Natural Gas Regulatory Board (PNGRB) website, stakeholders, opposed the tariff submitted by the state-owned natural gas utility due to the uncertainty of economic life extension, volume divisor, Capex outgo and the number of working days.

PNGRB held an open house earlier this week to talk about the stakeholders' comments. The regulator had, in its tariff order dated March 2016, issued final natural gas pipeline tariff for the KG-basin till the end of the economic life, which extended till February 2017, as per the public consultation document hosted by PNGRB. PNGRB has said the tariff order issued did not consider an extension in the life of the pipeline beyond February 2017. The extension of economic life beyond the said period is still under the board's consideration, PNGRB said.