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Independent natural gas transport system operator likely soon
The oil ministry may soon float a cabinet note on setting up an independent transport system operator (TSO) to manage the common carrier capacity of natural gas pipelines to give all gas marketers a level playing field in the country, according to people with knowledge of the matter.
The common carrier capacity of a gas pipeline, which averages about a quarter of the full capacity, is managed by the company that laid the pipeline and now operates it. In most cases, these pipeline operators such as GAIL and GSPC also have gas marketing businesses. In this dual role, the operator also becomes a competitor for its pipeline customer in the gas marketing business.
To remove this perceived conflict of interest, and allow fair, transparent and non-discriminatory access to the gas grid to all gas marketers, the government is planning to set up the TSO, the people cited above said.
The common carrier capacity of a gas pipeline, which averages about a quarter of the full capacity, is managed by the company that laid the pipeline and now operates it. In most cases, these pipeline operators such as GAIL and GSPC also have gas marketing businesses. In this dual role, the operator also becomes a competitor for its pipeline customer in the gas marketing business.
To remove this perceived conflict of interest, and allow fair, transparent and non-discriminatory access to the gas grid to all gas marketers, the government is planning to set up the TSO, the people cited above said.
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