Petronet LNG clarifies on the PNGRB paper on Dahej terminal

DAHEJ : Petronet LNG Ltd., in a clarification issued on Thursday, January 2, said that the published paper mentioned the regulation of LNG terminals does not fall under the purview of the Petroleum and Natural Gas Regulatory Board (PNGRB), and any such regulation would require amendments to the PNGRB Act of 2006.

Further, Petronet LNG said that PLL’s Dahej terminal offers competitive and one of the lowest Regas charges as compared to any other terminals in the country. “Such regas charges have been fixed on the basis of agreements between Petronet LNG and various users / capacity.”

It also said that LNG regas charges constitute only 5% to 6% of delivered gas price to the consumers. “Also, the regas tariff in the country is market determined and there is no monopoly in the regas terminal business,” the company said in a statement.

Petronet LNG was called out by the regulator PNGRB in a recently released paper.

The company being pulled up by the PNGRB was observed in the paper, accessed by CNBC-TV18.

PNGRB wrote in its paper that despite Dahej’s plan to expand to 22.5 MMTPA, its re-gas charges have escalated by 5% annually and now stand at an enhanced level for the entire capacity.