Gas pipeline norms: Inter-ministerial consultation on Transport Service Operator concludes

The Ministry of Petroleum and Natural Gas (MoPNG) has concluded the inter-ministerial consultation on establishing an independent gas pipeline operator to end the monopoly of GAIL in the pipeline business.

The MoPNG has sought a nod from the Committee on Establishment Expenditure(CoEE) for establishing Transportation Service Operator (TSO). Once approved by the (CoEE), The Ministry will seek a cabinet nod. The ministry aims to implement TSO in FY22.

All common carrier gas pipelines will be part of the Transport Service Operator. The TSO charges will be regulated by Petroleum and Natural Gas Regulatory Board (PNGRB). The impact of this decision will be on GAIL as it operates about 11,500 Kilometers of the gas pipeline under the common carrier.

The plan is to implement City Gas Distribution (CGD) in over 500 districts across India. This move will help bring in the competitiveness required to expand the gas-based economy in India. The idea is to include clean fuel sources and India plans to increase the share of gas in its energy basket to 15 percent by 2030 from the current 6 percent. India aims to reduce its emission intensity by up to 33-35 percent by 2030.