PNGRB GUIDELINES

PREPARED BY:
ANKIT AGRAWAL – 15BPE003
UMANGKUMAR BHARATIYA – 15BPE009
BHAVESH CHAVDA – 15BPE018
SANCHIT AGARWAL – 15BPE002
KARAN CHAUDHARY – 15BPE013
INTRODUCTION

• The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under The Petroleum
and Natural Gas Regulatory Board Act, 2006.
• It is the main regulatory body for downstream sector and it’s main office is situated in Delhi.

• Currently, following incumbents professionally grace the seats of decision making in the Board:
Shri D.K. Sarraf, Chairperson
Shri Satpal Garg, Member (C&M)

Dr. S.S. Chahar, Member Legal

Shri S. Rath, Member (I&T)
Ms.Vandana Sharma, Secretary
FUNCTIONS OF PNGRB

The Board shall-

(a) protect the interest of consumers.

(b) register entities to-

(i) market notified petroleum and petroleum products.
(ii) establish and operate liquefied natural gas terminals.

(iii) establish storage facilities for petroleum, petroleum products or natural gas.
(c) authorise entities to-
(i)lay, build, operate or expand a common carrier or contract carrier.

(ii) lay, build, operate or expand city or local natural gas distribution network.
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(d) declare pipelines as common carrier or contract carrier.

(e) levy fees and other charges as determined by regulations.
(f) maintain a data bank of information on activities relating to petroleum, petroleum products and
natural gas.
(j) perform such other functions as may be entrusted to it by the Central Government to carry out
the provisions of this Act.
GUIDELINES OF PNGRB

The PNGRB issues guidelines for various activities which needs to be carried out. PNGRB issues
guidelines:
• For Natural Gas carrying Pipelines.

• For Capacity release for Natural Gas Pipelines.

• For Access arrangement.
• For Pre-Commissioning checks.

• For Commissioning in steel pipelines.

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• For Safety measures.

• For Gas Transportation Agreement (GTA).

• For Liquified Petroleum Gas (LPG).

• For Pipeline Natural Gas (PNG).
• For NG Marketing in areas yet to be authorized by PNGRB/outside authorized GA.
NATURAL GAS CARRYING PIPELINES

• Objective: Protection of Consumer interest in respect of Natural Gas carrying pipelines.

• These guidelines are for Dedicated, Common carrier and Contract carrier pipelines.

• Details of the Guidelines:

1. The laying, building, operating or expanding of any pipeline would be solely dependent on
customers, entity or third party entity.
2. The capital cost and operating cost to be paid by consumers and amount of tariff to be paid by
consumer, operator or an entity.
3. It appoints “Ombudsman” which carries out the task of handling of customer’s complaints.
CAPACITY RELEASE FOR NATURAL GAS PIPELINES

• Objective: To create a basic framework whereby holders of firm transportation contracts can
temporarily release contracted capacity.
• Details of the Guidelines:
1. The releasing shipper may release either full or partial capacity for specified duration.
2. The releasing shipper will inform the transporter along with all necessary details the extent of
capacity to be released at Contract Path (entry & exit points).
3. Transporter shall be required to provide the complete details of the assignment of capacity on
its web-site
4. If any dispute arises with regards to the implementation of any of the provisions of these
guidelines, the decision of the Board shall be final.
ACCESS ARRANGEMENT

• Objective: To provide the guiding principles for facilitating access arrangement between the
authorized entity and the shippers.
• Details of the Guidelines:
1. measurement of gas quantity, quality, pressure, temperature and any other parameter for the
purpose of metering and billing and the operational and safety requirements of city or local
natural gas distribution network.
2. maintenance of city or local natural gas distribution network including all associated material,
equipments and devices installed to service the customers.
3. managing shipper’s gas inventory in the city or local natural gas distribution network as mutually
agreed between entities.
4. The process and procedure of the validation and calibration to be carried out on the measuring
equipment
PRE-COMMISSIONING CHECKS

• Objective: The entire pipeline system shall be checked with respect to the “as built drawings”
and other design specifications.
• Details of the Guidelines:
1. Tightness test: The tightness test (pneumatic) should be completed at a pressure of at least 2
bar(g) with air or any inert gas for steel network and for low pressure network tightness test
should be done at least at operating / working pressure.
2. Function-test of field equipment and system: The supports, route markers, valves,
instruments, controls, interlocks etc. are adequately installed and physically checked along the
pipeline.
3. Survey of the pipeline: A detailed survey (preferably through line walk) of the pipeline route
shall be carried out to confirm that no leakage is observed along the pipeline alignment and at
the associated equipments & installations
COMMISSIONING IN STEEL PIPELINES

• Objective: To ensure specific checklist prior to pipeline commissioning based on type of purging
method adopted by them i.e. direct, indirect, complete displacement, slug displacement.
• Details of the Guidelines:

1. The guidelines include procedure for checking of valves, line pressure, controlling nitogen flow
rate, recording of line pressure, ensuring nitrogen purging, checking gas availability by methane
detector, holding of pressure and observing whether leakage is occurring or not.
2. Final leak test is carried out at Maximum Allowable Operating Pressure (MAOP).
SAFETY MEASURES

• Objective: No. of Safety gadgets, personal protective equipments, emergency handling facilities,
sign boards, do and don’ts etc. as required.
• Details of the Guidelines:
1. A minimum of 2 dry powder type extinguishers (5 kg) should be available on all purging /venting
sites.
2. Smoking, naked light or other sources of ignition should be prohibited. Warning signage/
pictograms like “NO SMOKING” and “NO NAKED LIGHTS” should be prominently displayed
around the work site, including at vent points.
3. Electrical continuity bonds (copper) need to be fitted across separated metallic pipes prior to
purging operation.
4. Adequate hearing protection should be available, where required.
GAS TRANSPORTATION AGREEMENT (GTA)

• Objective: To create a basic framework whereby various provisions of the GTAs executed
between transporters and shippers of natural gas ensure adherence to the principles of uniformity
and equity for promoting fair play.
• Details of the Guidelines:
1. Charges:
• To bring uniformity, it would be desirable to synchronize the upstream obligations with the
obligations under the GTA.
• It also provides guidelines for exclusion of charges due to failure in quantity of gas to be
transported, the quantity of gas which is boiled off during transportation, quantities which have
been reduced due to directions of Central/State Government.
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2. Term:
• It provides guidelines for extending the term in case shippers term with the supplier gets extended
due to activation of restoration period clause for make up gas.

3. Transportation Services:
• It covers the cost of system use gas and provides the same at the prevalent market price as per
transporter request.

4. Miscellaneous:
• It also covers detailed arrangements for trading/assignment of pipeline capacity based on guidelines
which will be separately issued by the Board.
LPG & PNG

• Objective: To protect the interest of domestic LPG & PNG consumers from fraud or
harassment by unauthorized persons.
• Details of the Guidelines:
1. Domestic consumers need to provide right of access only to the authorized agent for the
purpose of reading, repairing, replacing or testing of the equipment.
2. It shall be the responsibility of the OMCs to intimate consumers the type of documentation and
identification provided to their employees.
3. OMCs shall immediately start a publicity campaign to create consumer awareness in this regard.
4. The OMCs also need to advise consumers to report such incidents in the consumers’ premises
in the last one year.
5. The OMCs are also required to file FIRs in the concerned police station in the area where such
incidents have taken place.
NG MARKETING IN UNAUTHORIZED AREAS

• Objective: For marketing of gas from standard/isolated and CBM wells, since the gas production
from these fields are generally low and there are no existing pipelines nearby.
• Details of the Guidelines:
1. The entities falling in above category need to apply to PNGRB giving details of gas sources,
volumes proposed to e supplied, list of customers with area coverage, nearest NG pipelines and
other details.
2. Separate arrangements for the NG for the customers outside authorized area shall have to be
made by the entity.
3. The entity shall not divert the gas allocated for the authorized CGD area to the customers
outside the authorized area.
THANK YOU