06-09-04 The final draft on natural gas pipeline policy provides for laying of more than one transmission pipelines along the same route. Further, it also proposes setting up of a Central Gas Authority (CGA) and a National Advisory Council (NAC) to promote and develop the gas sector in the country.
The authorisation to lay one or more pipelines along the same route comes with a rider. As per the new policy note, the final decision will be taken by the regulator/government after studying the source of gas and the markets that these pipelines will serve, the proposed terms of transmission tariff and after considering the time frame for completion of the project.

The proposed CGA will act as the technical arm of the government/regulator and will be assigned the task of developing standards and code. NAC, on the other hand, would be chaired by the petroleum secretary and will comprise members from major gas consuming ministries/departments, states, major oil and gas companies in the public and private sectors, besides other industrial chambers/associations and expert bodies.
Transportation of natural gas through pipelines, as per the note, would be on unbundled basis and any entity desirous of laying pipelines will have to do this only through a purely transportation company.

Under the new policy guidelines, all transmission pipelines for transportation of natural gas will be laid after authorisation is granted by the regulator. While deciding on the authorisation, the regulator will consider the long-term plan for development of pipeline network, early monetisation of gas, increasing availability of gas to the consumers, the impact on efficiency, and inter-connectivity of gas transportation system.
Any other entity interested in taking capacity in the pipeline would express its interest to the regulator and will enter into “take or pay” contract with the company laying the pipeline. Expressions of Interest (EoI) will be invited by the regulator for booking of the pipeline capacity from interested parties.
"The pipeline capacity would be finalised after taking into consideration the aggregated demand and the mandatory requirement of building 25 % extra capacity," says the policy note.

The extra capacity will be available on “open access” basis at transportation rates, which will not be more than the ceiling rate approved by the government. In order to ensure grid connectivity, the regulator will issue appropriate directions for operations of any pipeline network existing on the date of this new policy or for which authorisation has been granted and the pipeline is yet to become operational.
The role of the regulator will be to regulate transmission, distribution, supply and storage systems for natural gas/LNG. It will also monitor access to the gas pipelines on a non-discriminatory open access basis with level-playing field for all users and will approve transportation rates for gas transmission in all such cases where gas is transported on open access basis.