India Tightens LNG Terminal Rules to Boost Competition

The Petroleum and Natural Gas Regulatory Board (PNGRB) in India has introduced strict regulations for new and expanding LNG terminals, requiring prior approval but eliminating capacity reservation for third-party access. These rules aim to enhance competition, prevent wasteful investments, and align with India's energy goals.

India's oil regulator has enforced new regulations for liquefied natural gas (LNG) terminals, aligning with the country's broader energy policy. The rules necessitate prior approval for establishing or expanding LNG import facilities, yet omit the previous requirement to reserve a fraction of capacity for third-party access.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has specified the Registration for Establishing and Operating Liquefied Natural Gas Terminals Regulations, 2025. These stipulations focus on fostering competition and preventing futile investments while ensuring equitable gas distribution nationwide.

Under the new framework, companies must submit detailed business and evacuation plans before proceeding with new or expanded terminal projects. The PNGRB can impose penalties for not adhering to completion schedules, furthering its goal of efficient infrastructure utilization for consumer advantage.