PNGRB's 2025 LNG Terminal Registration Mandate

The Petroleum and Natural Gas Regulatory Board (PNGRB) has introduced new regulations requiring companies to register before establishing or expanding liquefied natural gas (LNG) terminals. These 2025 regulations replace the earlier mandate for reserving terminal capacity for third-party access.

Aimed at encouraging investment, boosting competition, and supporting India’s target of raising natural gas’s share in the energy mix to 15% by 2030, the new framework mandates PNGRB approval prior to final investment decisions (FID). This is intended to avoid redundant infrastructure and ensure equitable gas distribution.

Applicants must submit a Detailed Feasibility Report (DFR), a credible business plan, and an LNG evacuation strategy. A bank guarantee of 1% of the project cost or ₹25 crore (whichever is lower) is also required. Although an earlier draft proposed reserving 20% of short-term capacity for third-party access, this was dropped following industry pushback.

PNGRB will monitor project timelines and has the authority to impose penalties for delays. India currently has seven operational LNG terminals, with major facilities run by Petronet LNG, Shell, GAIL, and Adani Total Gas along the country's coastline.

News by Rahul Yelligetti.