The Hindu Business Line : Gas transportation: Combined single tariff for trunk lines

The Minister of State for Petroleum & Natural Gas, Mr Dinsha Patel, has informed the Lok Sabha that in the case of trunk lines for gas transportation, namely Hazira-Vijaipur-Jagdishpur (HVJ) pipeline and Dahej-Vijaipur pipeline (DVPL), a combined single tariff of Rs 831/million standard cubic metre (mscm) with escalation formula is being followed with effect from June 1.

DVPL charge

However, the tariff for connectivity of Gujarat State Petronet Ltd (GSPL) to DVPL has been kept at Rs 280/mscm for the benefit of customers in Gujarat, the Minister said.

GSPL had requested that full DVPL transmission charge should not be charged from it for gas flowing through the GAIL pipeline network before entering the GSPL pipeline network, the Minister said.

In order to benefit the customers of Gujarat, the Government has decided, with effect from June 1, that GSPL's customers need not pay the combined single tariff for use of DVPL.

The Minister further stated that Transmission Corporation of Andhra Pradesh had requested that transportation tariff for power projects in the KG basin network should be reduced. This was followed by request from the Government of Andhra Pradesh as well.

In this regard, Mr Patel informed that the Government has revised the transportation tariff of KG basin gas supply network, with effect from November 1 for all the customers on these networks as follows: Tatipaka-Kakinada-Kovuur network - Rs 413/mscm and Tatipaka-Kondapalli network - Rs 1,056/mscm.

The transportation charge is calculated over the period of contract and is specific to the investment and economic life of the pipeline/gas source. Its calculation is based on estimated capital cost, O&M expenses, estimated manpower cost, period of contract, reasonable rate of return, etc.