Gas regulation—India—Q&A guide
Gas regulation—India—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Gas regulation—India—Q&A guide
  • 1. Describe the domestic natural gas sector, including the natural gas production, liquefied natural gas (LNG) storage, pipeline transportation, distribution, commodity sales and trading segments and retail sales and usage.
  • 2. What percentage of the country’s energy needs is met directly or indirectly with natural gas and LNG? What percentage of the country’s natural gas needs is met through domestic production and imported production?
  • 3. What is the government’s policy for the domestic natural gas sector and which bodies set it?
  • 4. Which authorities make regulatory policies and decisions in respect of the production, transmission, distribution and supply of natural gas?
  • 5. What is the ownership and organisational structure for production of natural gas (other than LNG)? How does the government derive value from natural gas production?
  • 6. Describe the statutory and regulatory framework and any relevant authorisations applicable to natural gas exploration and production.
  • 7. Are there different rules for, or any restrictions on, unconventional natural gas production (including fracking)?
  • 8. Are participants required to provide security or any guarantees to be issued with a licence to explore for or to store gas?
  • 9. Describe in general the ownership of natural gas pipeline transportation, and storage infrastructure.
  • More...

Gas regulation—India—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to gas regulation in India published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: J Sagar Associates—Venkatesh R Prasad; Megha Arora; Sweta Singh

1. Describe the domestic natural gas sector, including the natural gas production, liquefied natural gas (LNG) storage, pipeline transportation, distribution, commodity sales and trading segments and retail sales and usage.

As per the data published by the Petroleum Planning and Analysis Cell, Ministry of Petroleum and Natural Gas (MoPNG), the gross production of natural gas in the country was approximately 31,184 million metric standard cubic metres (MMSCM) for the financial year 2019&-;2020. Of this, about 18,576 MMSCM was produced from offshore fields, about 10,549 MMSCM from onshore fields and about 2,049 MMSCM from fields operated by private companies or joint ventures. The national oil companies (NOCs), that is, Oil and Natural Gas Corporation Limited and Oil India Limited, produce about 84 per cent of the total domestic gas production from the nomination regime blocks (excluding joint venture share) (ie, blocks awarded until the late 1970s, wherein these blocks were only awarded to NOCs). Pursuant to liberalisation in the early 1990s, several sectors, including the domestic gas exploration and production sector, were opened for the participation of private players and foreign investors.

In the midstream and

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