Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006
- (1)When, either on the basis of an application for authorisation for laying, building, operating or expanding a common carrier or contract carrier or for laying, building, operating or expanding a city or local natural gas distribution network is received or on suo motu basis, the Board forms an opinion that it is necessary or expedient to lay, build, operate or expand a common carrier or contract carrier between two specified points, or to lay, build, operate or expand a city or local natural gas distribution network in a specified geographic area, the Board may give wide publicity of its intention to do so and may invite applications from interested parties to lay, build, operate or expand such pipelines or city or local natural gas distribution network.
- (2)The Board may select an entity in an objective and transparent manner as specified by regulations for such activities.
Summary
- The Board can decide a new pipeline or local natural gas network is needed either by receiving an application or by deciding on its own motion.
- When the Board believes a pipeline is needed between two points, or a network is needed in a specific area, it gives wide publicity of its intention.
- The Board invites applications from interested parties to build or operate the pipeline or network.
- The Board selects the winning entity in an objective and transparent manner, based on rules specified by its regulations.
Practical examples
FAQ
1. Can the Board decide to build a pipeline even if no company has asked to build one?
Yes, the Board can act on its own motion to declare that a pipeline is needed.
2. How does the Board choose who gets to build the pipeline?
The Board selects an entity in an objective and transparent manner as specified by its regulations.
3. Does the Board have to tell the public about its plans?
Yes, the Board may give wide publicity of its intention and invite applications from interested parties.
Test yourself
Q1.Under Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006, how must the Board select an entity to lay or build a pipeline?
Q2.Under Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what triggers the Board to invite applications to build a city natural gas distribution network?
Q3.Under Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what must the Board do after forming an opinion that a pipeline is needed between two specified points?
Q4.Under Section 19 of The Petroleum and Natural Gas Regulatory Board Act, 2006, what specific geographic details must the Board identify when giving publicity for a new pipeline or network?