Lok Sabha Question No. 1340 (UNSTARRED), answered on 2015-12-07
Subject: LNG Pipeline Network
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BHEEMRAO BASWANTHRAO PATIL, MAHEISH GIRRI, SHOBHA KARANDLAJE, PRATHAP SIMHA

## LOK SABHA

## UNSTARRED QUESTION NO. 1340

## TO BE ANSWERED ON 07.12.2015

## LNG PIPELINE NETWORK

## 1340.    SHRI BHEEMRAO B. PATIL:

SHRI MAHEISH GIRRI:

KUMARI SHOBHA KARANDLAJE:

SHRI PRATHAP SIMHA:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

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- (a) whether the Government proposes to expand LNG pipeline network in the country;
- (b) if so, the details thereof along with existing network in Telangana as compared to other States during the last three years and parameters adopted for expanding the LNG pipeline network;
- (c) whether the Oil Marketing Companies including Oil and Natural Gas Corporation Limited, Gas Authority of India Limited and Petronet LNG have signed a Memorandum of Understanding for setting up of LNG Regasification Terminal in the country including Mangalore port;
- (d) if so, the details thereof along with the contract signed with the said companies to set up LNG Terminal, State/UT/company-wise;
- (e)  whether  the  Government  has  identified  potential  equipment  and  measures  required  for  the import of LNG and if so, the details thereof; and
- (f) whether any study has been carried out to identify potential projects that utilise LNG and if so, the details of such projects and estimated cost of each project?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी (स् विंत्र प्राार (श्ररी धमेन्द र प्रधान

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)  &  (b):  At  present,  natural  gas  is  not  transported  in  liquefied  form  through  pipelines.  The Central Government has established Petroleum and Natural Gas Regulatory Board (PNGRB) under the PNGRB Act, 2006.  PNGRB is the Competent Authority for granting authorization to entities for  developing  natural  gas  pipeline  on  common  carrier  or  contract  carrier  basis.  Under  the  Act, PNGRB has notified the PNGRB (authorizing entities to lay, build, operate or expand natural gas pipeline)  Regulation,  2008  for  granting  authorization  to  entities.    These  Regulations  provide  for

initiation of proposal for grant of authorization through Expression of Interest (EoI) route or suomoto  by  PNGRB,  public  consultation  process  and  subsequently  selection  of  an  entity  through competitive  bidding  process.    The  bidding  entities  shall  quote  the  transportation  tariff  and  the volume  flow  for  the next  25 years.  PNGRB  selects  the  entity  which  quotes  the  lowest transportation tariff and highest volume to be flown over the next 25 years.

(c) & (d): ONGC signed Memorandum of Understanding (MoU) with New Mangalore Port Trust (NMPT), Mitsui  and  BPCL  for  carrying  out  feasibility  study  for  setting  up  LNG  regasification terminal at Mangalore. IOCL is setting up 5 MMTPA LNG regasification terminal at Ennore in the State of Tamil Nadu. GAIL and IOCL have signed separate MoUs with Dhamra LNG Terminal Pvt. Ltd. for booking of capacity in their proposed LNG terminal in the State of Orissa.  Andhra Pradesh Gas Distribution Corporation (APGDC), an affiliate company of GAIL in collaboration with the Govt. of Andhra Pradesh is promoting setting up of a Floating Storage Regasification Unit (FSRU)  based  LNG  terminal  in  Kakinada.  In  this  regard,  a  Joint  Venture  Agreement  has  been signed  among  APGDC,  GDF  Suez  Energy  India  Private  Limited  and  Shell  Gas  and  Power Development B.V.

(e) & (f): At present, Liquefied Natural Gas (LNG) is imported in the country under Open General License (OGL). LNG is imported in the country by various marketer based on its demand. The volumes are tied up mutually between the buyers and sellers depending upon the requirements. It is the  discretion  of  the  marketers  and  LNG  terminal  operators  to  undertake  the  surveys/study  for ascertaining the demand before deciding to procure an LNG cargo.

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