Regulator allows GAIL to hike tariff on sections of Cauvery pipeline

• Posted in OilGas
• on June 1, 2016
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GAIL (India) Ltd will be allowed to more than double the tariff on two sub-networks of the Cauvery Basin Natural Gas Pipeline from 2016-17 after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved the increase. In a tariff order passed by the PNGRB on May 27 and made public on Monday, the regulator has set the tariff for the 230 km Narimanam and Kuthalam (NKM) sub-network at RS.7.47 per million British thermal unit till March 31, 2016 and at RS.17.41 per million British thermal unit from April 1, 2016.

For the Ramnad (RMD) sub-network on the Cauvery Basin Natural Gas Pipeline, the regulator has set the tariff at RS.3.07 per million British thermal unit till March 31, 2016 and from April 1, 2016 the tariff will be RS.16.63 per million British thermal unit. In both cases, the tariff set has been lower than that sought by GAIL (India) Ltd. The company had sought RS.43.58 per million British thermal unit for the NKM sub-network from April 1, 2015 onwards while for the RMD sub-network, it had sought RS.17.81 from the same date.

On Monday, GAIL’s shares closed 0.05 per cent higher on the BSE at RS.379.60. Meanwhile, GAIL also announced that it has started drilling its second exploratory well as an operator in its New Exploration Licensing Policy — IX block in the Cambay basin. The well is situated in the Nabhoi village in Tarapur Tehsil of Anand District in Gujarat.
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