New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed bringing 12 natural gas pipelines and regional networks that are not physically connected to India’s national gas grid under the unified gas transportation tariff system. The proposed amendment, released on October 8, 2026, could change how gas transportation charges are calculated for these pipelines.
The draft amendment names pipelines operated by GAIL (India) Limited, Indian Oil Corporation Limited (IOCL), Assam Gas Company Limited, Gas Transmission India Private Limited, IMC Limited and Hooghly Pipelines Private Limited.
If approved, the proposal would allow these pipelines to be included in the National Gas Grid System (NGGS) for unified tariff purposes even if they are not physically interconnected with the existing grid or with one another. At present, they are subject to their respective approved pipeline tariffs.
PNGRB has invited comments from stakeholders, including members of the public, until October 23, 2026. Feedback can be submitted by email to [email protected] or sent by post to the regulator.
PNGRB Proposes Tariff Changes for 12 Gas Pipelines
Under the proposed amendment, 12 pipelines and regional networks would be added to a new list called Schedule C1. Their inclusion would allow them to participate in the unified tariff framework despite the absence of physical connections to the national gas grid.
GAIL (India) Limited operates five of the listed networks, while IOCL operates three. The remaining four are operated by Assam Gas Company, Gas Transmission India, IMC and Hooghly Pipelines.
Currently, a pipeline qualifies as part of the national gas grid under the existing regulations if it belongs to a network of natural gas pipelines in India that are fully interconnected. The draft proposes retaining this definition while adding a separate category for pipelines specifically listed in Schedule C1.
This would create a regulatory route for disconnected pipelines to be included in the unified tariff system without requiring physical interconnection.
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List of 12 Pipelines Proposed for Unified Gas Tariff
The draft amendment identifies the following pipelines and regional networks for inclusion in Schedule C1.
GAIL (India) Limited — Five Networks
- Cauvery Basin Network, Tamil Nadu, including the Narimanam-Kuthalam and Ramnad sub-networks.
- Gujarat Regional Network, including the Motwan, ex-Hazira, Kalol-Ramol, Kadi-Kalol, Paliyad and Mehsana sub-networks.
- Agartala Regional Network.
- Kochi-Koottanad-Bangalore-Mangalore Pipeline.
- Gurdaspur-Jammu Pipeline.
Indian Oil Corporation Limited — Three Pipelines
- Ennore-Tuticorin Pipeline.
- Kochi-Kanyakumari-Thoothukudi Pipeline.
- Hazaribagh-Ranchi Pipeline.
Other Pipeline Operators — Four Networks
- Assam Natural Gas Pipeline Network — Assam Gas Company Limited.
- Ennore-Nellore Pipeline — Gas Transmission India Private Limited.
- Kakinada-Vijayawada-Nellore Pipeline — IMC Limited.
- Kanai-Chhata-Panitar Pipeline — Hooghly Pipelines Private Limited.
The proposed inclusion covers regional gas networks and individual pipelines serving different parts of the country.
How the Unified Gas Pipeline Tariff Works
Under the existing framework, the unified tariff is calculated as the weighted average of the approved zonal tariffs for pipelines forming part of the national gas grid. The weighting reflects the expected gas volumes transported through the respective pipelines.
According to the information provided, the currently notified unified natural gas pipeline tariffs are:
- Zone 1: ₹54.00 per MMBTU.
- Zone 2: ₹110.02 per MMBTU.
MMBTU stands for million British thermal units, a standard unit used to measure energy content.
If the 12 pipelines are included in the unified tariff framework, their approved tariffs and transportation volumes would be incorporated into the calculation. The resulting impact on the common tariff would depend on the rates applicable to these pipelines and the volumes of gas they transport.
The proposed change is intended to extend the unified tariff mechanism to the listed networks, rather than requiring users to pay only the individual pipeline tariffs currently applicable to them.
Pipeline Operators to Remain Revenue Neutral
The draft retains the revenue-neutrality principle for participating pipeline operators. Under this arrangement, each company remains entitled to the revenue it would have earned under its approved tariff for the actual volume of gas transported.
The settlement mechanism is designed to balance differences between the revenue collected through the unified tariff and the amount each pipeline operator is entitled to receive.
- Operators collecting more than their eligible revenue entitlement would transfer the surplus into the settlement mechanism.
- Operators collecting less than their entitlement would receive the corresponding amount through the mechanism.
The newly listed pipelines would also participate in the industry committee responsible for managing these settlements.
They would be required to submit the same six-monthly, auditor-certified data as other participating pipeline operators. This would help maintain transparency and support the calculation and settlement of revenues under the unified tariff framework.
Proposed Rules for Pipelines Under Construction
The draft amendment also addresses pipelines that have not yet been commissioned.
According to the proposal, a listed pipeline under construction would become part of the National Gas Grid System for tariff purposes from the date it is commissioned, either fully or partially.
This means that a pipeline would not necessarily have to be fully operational along its entire length before being included in the unified tariff framework. The provision is intended to clarify when the tariff treatment would begin for newly commissioned infrastructure.
The draft also allows PNGRB to amend Schedule C or Schedule C1 through an order from time to time. This would give the regulator the flexibility to update the lists of pipelines covered by the regulations.
PNGRB Proposes Unified Contractual Routes for Swapped Government Gas
The draft amendment introduces a provision for government-allocated natural gas supplied through a swapping arrangement.
Under the proposed rule, the unified contractual path for such gas could consist of pipelines that are not physically interconnected.
A unified contractual path represents the route recorded in the transportation arrangement between the point where gas enters the network and the point where it is taken out. Under a swapping arrangement, gas supplied at one location can be matched by an equivalent quantity withdrawn at another location, without the same physical gas travelling along the entire contractual route.
The proposed provision would apply specifically to government-allocated natural gas supplied through swapping mechanisms. It would allow the contractual route to include disconnected pipelines for this limited purpose.
Shared Costs Under Unified Tariff System Capped at ₹1 Crore
The proposed amendment also addresses the allocation of expenses incurred in operating the unified tariff settlement system.
Pipeline companies may pay expenses on behalf of the industry committee, including:
- Auditor fees.
- Development and maintenance of the settlement portal.
- Consultant charges for PNGRB-approved studies.
- Fees for independent auditors reviewing settlement amounts.
- Costs of the information technology system used for settlement calculations.
Under the draft, a company that pays eligible expenses would be allowed to include those costs in the revenue it is entitled to recover for that year.
However, the total amount recognised across all companies for these expenses would be capped at ₹1 crore annually, including taxes. Any amount exceeding the ceiling would continue to be distributed among the companies under the existing cost-sharing arrangement.
At present, members of the industry committee share these costs equally. The proposal would modify how certain expenses are accounted for while retaining a mechanism for allocating costs that exceed the specified limit.
PNGRB Invites Public Comments Until October 23
PNGRB has invited feedback on the draft amendment from all stakeholders, including the general public.
Comments and suggestions can be submitted through the following channels:
- Email: [email protected]
- Deadline: October 23, 2026.
- Postal submission: To the Petroleum and Natural Gas Regulatory Board.
The proposed changes remain at the draft stage. Their implementation will depend on the regulatory process and the outcome of the consultation.
If adopted, the amendment would expand the scope of the unified gas transportation tariff framework, establish rules for including disconnected pipelines and clarify provisions relating to revenue settlements, government gas swaps and shared operating expenses.
About the Petroleum and Natural Gas Regulatory Board (PNGRB)
The Petroleum and Natural Gas Regulatory Board (PNGRB) is a statutory regulatory body established under the Petroleum and Natural Gas Regulatory Board Act, 2006. It regulates specified activities in India’s downstream petroleum and natural gas sector, including natural gas and petroleum product pipelines and city gas distribution networks. Its responsibilities include promoting competition, protecting consumer interests and supporting the development of petroleum and natural gas infrastructure.
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