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PNGRB urges GAIL to phase out gas turbines, adopt electric motors
India’s gas regulator has asked Gail — the country’s largest gas distributor — to phase out gas turbines used in pipeline compressors and switch to electric motors to bring down costs. Gas pipelines in India currently use gas-fuelled turbines in compressors.
Chairperson of Petroleum and Natural Gas Regulatory Body (PNGRB) Anil Jain told Business Standard that the rationale for moving towards electric motors for compressors stems from Gail’s request for pipeline tariff hike due to higher natural gas prices.
The regulator is currently evaluating the cost implications of the move. Lower electricity costs as compared to gas prices would help in reducing the cost of operations for the company, said Jain.
“We have asked entities to migrate away from gas-fuelled turbines to electric motors. It is in the feasibility phase. Work is ongoing on time required (for the shift) and cost implications,” said Jain.
A compressor is a critical device used for increasing pressure of natural gas as it travels through a pipeline. It helps in maintaining the flow of gas over long distances and through various terrains.
To ensure uninterrupted operations, existing gas turbines would be on stand-by mode in case of power discontinuity, while for future pipelines electric motors might be fitted with diesel gensets, Jain said.
In August 2024, the country’s largest gas pipeline network operator had submitted a request to PNGRB for higher integrated pipeline tariff of ₹78.72 per million metric British thermal unit (mmBtu), from current ₹58.61 per mmBtu.
Gail’s chairman and managing director Sandeep Kumar Gupta had said the ₹20/mmBtu hike would boost pre-tax earnings by ₹34 billion annually, according to news agency PTI.
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