The Petroleum and Natural Gas Regulatory Board (PNGRB) on December 23rd 204 announced an important update to the regulations governing City or Local Natural Gas Distribution Networks. As per the notification, the PNGRB introduced the Third Amendment to the Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for City or Local Natural Gas Distribution Networks) Regulations, 2008.
The new Regulation is known as Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for City or Local Natural Gas Distribution Networks) Third Amendment Regulations, 2024.
Key Change in the Regulations
The new regulations specifically focus on the operation of compression facilities at City Gate Stations (CGS), a critical component in the distribution of natural gas to urban areas.
According to the updated rules:
- Compression facilities may now be set up and operated by the authorized entity, but only with prior approval from the PNGRB.
- Approval Period: If approved, these compression facilities can operate for an initial period of two years from the date of the Board’s approval.
- Extension Possibility: After the initial period, the PNGRB will consider extending the operation of these facilities, but this will be done on a case-by-case basis.
- Ceasing Operations: Once the approved operational period ends, the authorized entity is required to immediately cease operations of the compression facilities.
What Does This Mean for the Industry?
This amendment brings more clarity and control to the process of setting up compression facilities for natural gas distribution. It ensures that entities involved in the infrastructure of natural gas networks comply with regulatory standards while operating within defined timelines. The new provisions also emphasize the importance of PNGRB approval before establishing such facilities, ensuring that operations are well-regulated and monitored.
Why Is This Important?
Compression facilities are essential in natural gas distribution, as they increase the pressure of the gas for smooth transmission through pipelines. However, unchecked expansion and operation of these facilities can pose safety and regulatory concerns. By introducing clear guidelines and approval processes, the PNGRB aims to safeguard both the industry and the public while ensuring the efficient functioning of the natural gas distribution system.
