IGX Proposal for Booking Unutilised LNG Regasification Capacity Gets Nod From PNGRB
The PNGRB also said that the voluntary platform would allow LNG terminal operators and capacity holders to list unused capacity, enabling prospective users to identify and book available slots according to their requirements
New Delhi: Oil and gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has approved a proposal by the Indian Gas Exchange (IGX) to introduce a platform for listing and booking unutilised liquefied natural gas (LNG) regasification capacity, in a move aimed at improving infrastructure utilisation and widening access to the country's gas market.
The PNGRB also said that the voluntary platform would allow LNG terminal operators and capacity holders to list unused capacity, enabling prospective users to identify and book available slots according to their requirements. The regulator’s move comes as several LNG terminals report low capacity utilisation, leaving scope to attract additional cargoes by offering unused regasification capacity at competitive charges. Regasification is the process of converting LNG, transported in liquid form, back into gas for supply through pipelines.
The platform is expected to improve price discovery for regasification services by providing a transparent mechanism through which available capacity can be listed and accessed. Buyers will also be able to indicate their capacity requirements, helping the market participants better match available infrastructure with demand.
IGX will facilitate capacity bookings, while commercial negotiations, payment settlements and risk management will remain directly between buyers and sellers under their respective agreements. Participation by terminal operators, capacity holders and prospective users will be voluntary.
PNGRB further said that the initiative would complement its earlier decision to reduce the number of natural gas pipeline tariff zones to two, a measure intended to improve the competitiveness of LNG terminals located farther from consumption centres. “The combined measures could help make better use of existing gas infrastructure by easing access to regasification capacity and improving the economics of sourcing LNG through different terminals,” it said.