Govt mulls more powers for oil regulator

NEW DELHI: The government may soon strengthen the downstream regulator in the oil & gas sector by making ���suitable��� amendments in the provisions of the existing Petroleum & Natural Gas Regulatory Board (PNGRB) Act, 2006. The changes would empower the board to issue licences for retailing of CNG and piped gas in cities.

���The existing Act is likely to be amended in the winter session of Parliament to further empower the downstream regulator. The amendment will address notification of Section 16 and some other issues,��� petroleum secretary RS Pandey told ET.

Section 16 of the Act empowers the board to authorise a company to lay and operate natural gas pipelines and city gas projects. Mr Pandey, however, declined to elaborate on specific changes. Speaking about the delay in notifying Section 16 of PNGRB Act, he said the provision could not be implemented in its present form as per suggestions made by government���s legal officials. ���This amendment of Section 16 will be to empower the board,��� he said.

He also said that government may soon announce setting up of a national gas highways authority, which will help in ���promoting��� laying of natural gas pipelines in the country. The authority will, however, not be a statutory body and it will restrict itself in augmenting pipeline construction in the country, he said.

���The authority will issue tenders for laying pipelines,��� he said. Pipeline infrastructure will be constructed by both public-private-participation (PPP) model as well as through public funding. In the case of 100% public funding, the government may award the contract to state-owned GAIL India.

He said there will not be any overlap between powers of PNGRB and the proposed authority. ���While PNGRB will remain the regulator, function of the proposed authority will be to promote creation of pipeline infrastructure on the line of the NHAI,��� he said.

The government is also not in favour of giving any statutory powers to upstream regulator Directorate General of Hydrocarbon (DGH). ���DGH so far has been acting as the technical advisor to the government on matters of oil exploration and production. The government has ensured level playing field for the upstream sector and there is feeling that unnecessary regulation is not required,��� said Mr Pandey.