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Core Purpose

The Petroleum and Natural Gas Regulatory Board hereby makes the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Amendment Regulations, 2025, to further amend the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2016, under Section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006.

Detailed Summary

The Petroleum and Natural Gas Regulatory Board (PNGRB) issued the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Amendment Regulations, 2025, on October 1, 2025, under F. No. PNGRB/COM/2-NGPLTariff(11)/2021Vol-II (Part File) (E-5939), exercising powers conferred by Section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006). These regulations amend the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2016 (originally notified vide F. No. PNGRB/M(C)/48, dated 29th April, 2016, and subsequently amended). The amendment inserts a new sub-regulation (12) after regulation 4(11), which redefines the 'Escrow account' as the 'Imbalance charges account' and mandates its funds be utilized as specified in the newly inserted Schedule-I. Schedule-I details the scope and permitted usage of these funds. The 'Imbalance charges account' will accumulate funds from transporters' deposits for 'System indiscipline and overrun charges' (as per sub-regulation 10 of regulation 13 of the PNGRB (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008) and 'Imbalance management services' (as per sub-regulation 4 of regulation 4 of the 2016 Regulations), along with interest on investments. The funds may be used for twelve specified purposes, including capacity determination of gas infrastructure, PNGRB's regulatory expenses, consultancy for natural gas infrastructure development, setting up office spaces, personnel training, education and awareness programs, skill development for CGD and NGPL industries, innovation projects, start-up/R&D funds, studies on hydrogen, CBG, LNG, gas-based power plants, gas market growth, and adjustments in the unified tariff/deficit amount. Annual utilization is generally limited to the interest earned on deposits from the previous financial year, approved by the Board, with exceptions for office setup and tariff adjustments. The Industry Committee, constituted under regulation 2.1(e) of Schedule-D of the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, is tasked with submitting proposals for certain fund usages by January 31st prior to the financial year, after inviting and considering views from shippers and stakeholders. Separate accounting for all expenses from the Imbalance charges account is mandatory.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-16102025-266967 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 673] NEW DELHI, TUESDAY, OCTOBER 14, 2025/ASVINA 22, 1947 PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, the 1st October, 2025 F. No. PNGRB/COM/2-NGPLTariff(11)/2021Vol-II (Part File) (E-5939). In exercise of the powers conferred by Section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board, hereby makes the following regulations, to further amend the P0065troleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2016, namely: - 1. Short title and commencement (1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Amendment Regulations, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2016, - a) After sub-regulation (11) of regulation 4, the following shall be inserted, namely: "(12) Notwithstanding anything contained in PNGRB (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008 or any other regulations, the Escrow account shall be referred to as 'Imbalance charges account'. The fund available in 'Imbalance charges account' shall be utilized in the manner and for the purposes as specified under Schedule-1 of these regulations." b) After regulation 5, the following Schedule-I shall be inserted, namely: - Schedule-I {see regulation 4(13)} 1. Scope The funds in the Imbalance charges account maintained by PNGRB shall comprise of the balance available out of the followings: i. Amount deposited by the transporters on account of 'System indiscipline and overrun charges as provided in sub-regulation 10 of regulation 13 of the Petroleum and Natural Gas Regulatory Board (Access Code for Common Carrier or Contract Carrier Natural Gas Pipelines) Regulations, 2008, ii. Amount deposited by the transporters on account of 'Imbalance management services' as provided in sub-regulation 4 of regulation 4 of the Petroleum and Natural Gas Regulatory Board (Imbalance Management Services) Regulations, 2016, and iii. Interest on the investment made out of funds in the 'Bank Account for Imbalance charges account'. 2. Usage of the fund The funds in the 'Imbalance charges account' may be used for following purposes: i. Expenses pertaining to Capacity determination of gas infrastructure. ii. Expenses of PNGRB related to framing/ amending regulations/ guidelines, etc; iii. Expenses on consultancy services for natural gas infrastructure development by PNGRB; iv. Setting up of office space including regional offices and other infrastructure at PNGRB for development of natural gas sector in the country including establishment of centralized services for monitoring or IT or MIS or for emergency handling duly approved by PNGRB Board; v. Expense on training and development of PNGRB personnel pertaining to regulatory activities; vi. Education and awareness programs for entities and consumers through seminars, lectures, events, conferences, workshops, publications (print and electronic media), etc; to ensure safety and safeguard of consumer interests vii. Skill Development in collaboration with educational and technical institutions for CGD and NGPL industries viii. Expenses to undertake projects related to development, areas of innovation pertaining to natural gas sector; ix. Expenses pertaining to set up/ maintaining/ utilisation of start-up/ research and development fund(s) for support and development of natural gas infrastructure in the country duly approved by the PNGRB Board; x. Expenses on study for the growth of hydrogen, CBG, LNG, gas-based power plants, gas market etc; xi. Usage of fund towards adjustment in the unified tariff/ deficit amount, if any, duly approved by the Board. xii. Any other activities as approved by the PNGRB Board for development and support of the natural gas pipeline industry. 3. Manner of utilisation of balance amount available in 'Imbalance charges Account' i. A utilization budget of the fund shall be prepared every year and the utilisation shall be limited to the interest earned on deposits of Imbalance charges account during the previous financial year with the approval of Board with an exception of item at 2(iv) and 2(xi) above to which the limit shall not apply. However, any unutilized/unapportioned interest earned during the previous financial year shall be utilized towards adjustment in the unified tariff/ deficit amount, if any, duly approved by the Board. ii. Industry Committee constituted by the Board under regulation 2.1(e) of Schedule-D of the PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008, would submit their proposals listed at Sl No. 2(vi) to 2(xi) by 31st January prior to the start of the financial year for consideration of Board. Industry Committee shall invite and consider the views of shippers and stakeholders also while framing up its proposals before submission to the Board. For this purpose, Industry Committee shall frame a mechanism to invite and submission of views by the shippers to the Industry Committee and submit the same for approval of the Board. 4. Accounting Separate accounting details of all the expenses incurred from Imbalance charges account shall be maintained. ANJAN KUMAR MISHRA, Secy. [ADVT.-III/4/Exty./407/2025-26] Foot Note: Principal regulations were notified vide F. No. PNGRB/M(C)/48, dated 29th April, 2016 and subsequently amended vide F. No. PNGRB/M(C)/48, dated 23rd March 2018, PNGRB/COM/2- NGPL Tariff (2)/2012, dated 19th June, 2020, PNGRB/COM/2-NGPL Tariff(2)/2012(P-910), dated 11th November, 2020 and F. No. PNGRB/COM/2-NGPL Tariff (2)/2012 (P-3116) dated 23rd November, 2020. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR SRIVASTAVA

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