India's LNG Terminal Shake-up: Transparency, Pricing & Capacity Secrets Revealed!

Energy

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Updated on 12 Nov 2025, 05:58 pm

A regulatory panel, headed by former Petroleum and Natural Gas Regulatory Board chairman DK Sarraf, has recommended significant reforms for India's liquefied natural gas (LNG) terminals to enhance transparency and fair competition. The panel urged operators to rationalize truck-loading charges, which are significantly higher than international benchmarks and even domestic charges for refined products, and to allow terminal users to trade their unused regasification capacity. It also pointed out that a 5% annual increase in regasification charges by some terminals lacks logical scrutiny and highlighted disparities across different terminals. The report suggests the regulator play a more active role in curbing anti-competitive conduct, collaborating with the Competition Commission of India.

Impact 7/10 These proposed changes could lead to reduced operational costs for city gas distribution companies, potentially resulting in lower prices for end consumers. They aim to improve the efficiency and accessibility of gas infrastructure, fostering a more dynamic domestic gas market.

Difficult Terms Liquefied Natural Gas (LNG): Natural gas cooled to a liquid state for easier transport and storage. Regasification: The process of converting LNG back into its gaseous state. Capacity Booking Framework: Rules for reserving and using terminal space for gas processing. MMBtu (Million British Thermal Units): A unit of energy measurement for natural gas. City Gas Distribution (CGD) Entities: Companies supplying gas to local customers. Anti-competitive Conduct: Business practices that restrict fair competition. Third-Party Access: Allowing external companies to use terminal infrastructure.