Lower transit rates for KG gas

The gas-based industries in the state will stand to benefit from the Petroleum and Natural Gas Regulatory Board (PNGRB) ruling that is in favour of differential rates for gas based on their location.

The PNGRB, which met in New Delhi on Tuesday, issued interim orders allowing lower transportation tariff to industries which are nearer to the first landfall point of the KG basin gas.

Until now the tariff was the same along the pipeline from Kakinada to Jamnagar in Gujarat.

The differential fare is already in practice for other natural resources such as petrol, LPG and coal.

Sources said the tariff would be fixed based on the distance from the source to the user industry. “The tariff will change for every 300 kms,” said a senior official adding that a majority of industries in the state drawing Reliance gas fall within the first 300 kms.

The board also assured to the state to look into its proposal of awarding the piped gas project to the government-promoted AP Gas Infrastructure Corporation in multiple locations at one go.

The board has inviting bids in a piece-meal approach until now and has taken up bidding only in three locations so far.

The state, however, has proposed that it should be permitted to launch the piped gas project simultaneously in Srikakulam, Vizianagaram, Visakhapatnam, East and West Godavari, Krishna, Khammam, Nalgonda, Medak, Ranga Reddy, Warangal and Karimnagar.