The central government will set up the transmission system operator (TSO) for natural gas as a corporate body that may charge pipeline users to meet its own expenditure, the Ministry of Petroleum and Natural Gas said in a policy draft on Wednesday.

“Authorised or declared common carrier capacity in natural gas pipelines shall be available on a non-discriminatory open access basis. Such open access capacity shall be contracted by any entity also through the TSO,” said the Draft Petroleum and Natural Gas Regulatory Board (Matters Related to Natural Gas Sector Development) Rules, 2021.

“The TSO may collect charges from registered users of TSO services for meeting its own expenditure in performing its functions,” it said. It added that the TSO will register users of open access capacity in the pipelines, including gas traders.

While entities building city gas distribution pipeline networks have the right of first use over their local pipelines, the Petroleum and Natural Gas Regulatory Board will declare remaining capacity in city gas distribution pipeline networks as a common carrier or contract carrier capacity.

"Third-party access for marketing natural gas to CNG (transport) and PNG (domestic) segments in an authorized Geographical Area shall be allowed only when the central government finds it necessary or expedient to do so having regard to factors such as availability of domestic gas for such purpose and overall public interest,” the draft said.

The TSO may also own and operate pipelines but will not engage in gas marketing and sale, it added.

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