PNGRB Aiming to Start Gas Trading Hub Before December

The Petroleum and Natural Gas Regulatory Board (PNGRB) expects the proposed gas trading hub to be functional by the end of the calendar year and Crisil has been appointed to assist the regulator and the government in framing rules for the exchange.

“We have engaged Crisil for advising us in setting up gas trading hub. They will advise us on framing regulations. The timeline given to them is 18 weeks from May 11,” said Mr. Satpal Garg member of the PNGRB. Mr. Garg said that the hub will work on the lines of Power Exchange, which determines the price based on supply & demand and market forces. “This can be a physical or virtual trading hub. It will be an electronic trading hub. The location will depend on where the major pipelines are connected. The major pipelines are currently connected in Gujarat, Maharashtra and Kakinada in Andhra Pradesh. It will be any one of these places,” he said while speaking about the probable location for the hub. The PNGRB is focused on increasing the share of natural gas in the overall energy basket from 6.2% to 15% as mandated by the government, the official said.