-
Oil regulator issues force majeure guidelines for city gas operators
Downstream regulator PNGRB has issued a fresh set of force majeure guidelines, listing events such as riots, natural disasters, and restrictions by the government as conditions for allowing more time to complete city gas rollout obligations. The Petroleum and Natural Gas Regulatory Board (PNGRB) in a notice on September 2 detailed the procedure for considering force majeure claims of the city gas distribution (CGD) entities for a time extension.
Force majeure conditions, it said, include war/hostilities, major riots or civil commotion, natural calamities such as earthquake and floods, and “restrictions imposed by central or state government” that prevent or delay project execution.
PNGRB gives out city gas licence to retail CNG to automobiles and piped cooking gas to households on the basis of committed work programme like laying of gas pipelines and setting up CNG dispensing stations.
The guidelines came after a nationwide lockdown to contain the spread of COVID-19 from March 25 and state-level lockdowns since June hampered city gas projects.
Several city gas firms claimed force majeure after work on sites got stalled due to lockdown. Such claims however were not immediately accepted in absence of guidelines listing events that can trigger force majeure.
Share This
