Petroleum 

& Natural Gas Regulatory Board 
1st Floor, World Trade Centre, Babar Road, New Delhi ‐110001
Ph. 91‐11‐23457700/ 44/ 51 Fax No. 91-11-23709151
Web: www.pngrb.gov.in E-mail: [email protected]

Petroleum & Natural Gas Regulatory Board seeks comments/views of all

stakeholders, consumers, experts, etc., on draft regulations on “Registration
for establishing & operating Liquefied Natural Gas (LNG) terminals” up to
5th April, 2009.

The comments/views may be sent by e-mail to [email protected]

and/or by post addressed to Secretary, Petroleum & Natural Gas Regulatory
Board, 1st Floor, World Trade Centre, Babar Road, New Delhi 110001.
 PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the …………2009

In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas
Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory
Board hereby makes the following regulations, namely:-

1. Short title and commencement.

1) These regulations may be called the Petroleum and Natural Gas Regulatory
Board (Registration for establishing & operating Liquefied natural gas (LNG)
terminals) Regulations, 2009.

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2) They shall come into force on the date of their publication in the Official
Gazette.

2. Definitions.

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1) In these regulations, unless the context otherwise requires:

a) “Act” means the Petroleum and Natural Gas Regulatory Board Act, 2006;

b) “Board” means the Petroleum and Natural Gas Regulatory Board established
under Section 3(1) of the Act;

c) Liquefied natural gas terminal means facility and infrastructure required to:

I. receive Liquefied natural gas ;

II. Store LNG,
III. Enable regasification of LNG and
IV. transport regasified LNG till the outside boundaries of the facility

d) “Uncommitted capacity” means that capacity of the LNG facility which is net of
the entity’s own and the contractual requirements.

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 2) Words or expressions used and not defined in these regulations but defined in
the Act or in the regulations made there under, shall have the meanings
respectively assigned to them in the Act or in the regulations.

3. Application.

These regulations shall apply to all entities which have established and are
operating LNG terminals or proposing to establish and operate LNG terminals.

4. Registration of facilities.

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1) An existing entity which is already operating an LNG terminal before the

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appointed day shall inform the Board of such activity as per format at

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Schedule-I.
2) An entity applying for registration for establishing and operating LNG Terminals

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shall comply with technical and safety standards laid down by the Board
through relevant regulations.

3) An entity applying for registration for establishing and operating LNG terminals
shall ensure availability of adequate evacuation or other facilities for regasified
LNG

4) An entity applying for registration for establishing and operating LNG terminals
shall submit an application in the format as specified at Schedule – II and shall
be accompanied by the fee as specified under Petroleum and Natural Gas
Regulatory Board (Levy of Fee and Other Charges) Regulations 2007 for
processing of application and issue of certificate of registration.

5) The Board shall, within fifteen days of the receipt of an application for
registration and based on its preliminary assessment, either issue an open
advertisement in at least one national and one vernacular daily newspaper
(including webhosting) publishing receipt of an application for registration from

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 an interested party and commencement of public consultation process period of
thirty days or reject the application:

Provided that in case the Board rejects the application for registration, it shall
inform the entity of the decision along with the reasons for rejecting the same
after providing reasonable opportunity of being heard to the entity.

6) The Board shall within a period of thirty days after the end of the public
consultation period and after making such enquiry and subject to such terms
and conditions as it may specify, grant a certificate of registration to the entity
allowing commencing and carrying on the concerned activity or reject the
application.

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Provided that in case the Board rejects the application for registration, it shall

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inform the entity of the decision along with the reasons for rejecting the same

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after providing reasonable opportunity of being heard to the entity

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7) The Board shall issue a certificate of registration as per the format at Schedule
- III. In case of rejection or non acceptance of the application for registration,
the fee will be forfeited and the decision of the Board shall be final.

5. Obligation of entities.

1) All entities shall:

a) Declare for each LNG Terminal, entry and exit point-wise design and available
capacity of the terminal over and above its committed capacity in terms of
receiving, storing, regasifying and transporting regasified LNG and host the
same on its website on the 1st of every quarter. The uncommitted capacity, if
any, declared by the entity operating LNG Terminal shall be available for use by
other entities on mutually agreed terms and conditions without any
discrimination.
b) Comply with the relevant regulations for technical standards and specifications
including safety standards and the Board shall, ensure compliance through

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 conduct of technical and safety audits during the construction, commissioning
and operation phase, on an on-going basis, either directly or through accredited
third party, for ensuring safe commissioning and operation & maintenance of
the activities.
c) Shall furnish a performance bond of an amount equal to Rupees 10 million. The
performance bond has been prescribed for guaranteeing the timely
commissioning of the proposed LNG terminal as per the indicated targets and
also for meeting the service obligations by the Registered entities during the
operating phase of the project. The Board shall monitor progress with reference
to specified milestones for such projects and advise remedial action, if any, to
the entity. The registered entity is required to submit, on a quarterly basis,
progress achieved with respect to milestones indicated in DFR and confirmed by

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the Board and any other relevant information as per the format at Schedule -

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IV.

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d) Submit to the Board as and when called for, the updated information as per

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above clauses. The Board shall have powers to amend the above formats for
seeking information from time to time depending upon the requirements.

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e) Abide by all the terms and conditions specified in the regulations and failure to
do so, except for reasons beyond the reasonable control of the entity, shall
attract penal provisions of the Act.

6. Validity period of certificate of registration.

a) The Certificate of Registration shall be valid for a period of 25 years in

case of an entity proposing to establish & operate a LNG Terminal. For
an entity already established /operating a LNG Terminal before the
appointed date, the period of 25 years shall be reckoned from the start-
up date of commencement of physical activities of construction of the
LNG Terminal.

b) At the end of the validity period of Registration, issue of allowing further

extension of the period of Registration may be considered by the Board
for a block of 10 years at a time, depending upon the satisfactory

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 compliance of service obligations as specified by the Board, on such
terms and conditions, as it may deem fit at that time.
c) However, during the life of the project, Board shall have full right to
inspect or to check compliance either directly or through accredited third
party any time.

7. Change of Ownership

I. Any information regarding change in the composition of the board of

directors of the entity, ownership, management control or any other change
shall be submitted to the Board within 30 days of such change, along with
the following documents:

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a) Legal documentary proof of any change in the composition of the board,

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ownership, management control or any other change (such as a contract,

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deed, article of incorporation, etc.).

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b) A statement that the new owner/management of this facility accepts the
registration as previously submitted for this facility.

c) An undertaking from the new owner/management of this facility that

they shall abide by all terms and conditions and other obligations
required for registration as previously submitted for this facility.

8. Change of Status

I. Any proposal for modification of a registered facility, such as closure of part

or entire facilities or the addition of facilities not originally registered must
be documented and submitted in writing to the Board at least three months
in advance of such implementation.

II. The Board shall give wide publicity to such effect and invite objections and
suggestions within 30 days from all persons and entities likely to be affected

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 by such decision and formally accept, with or without modifications, the
proposed change in status of the registered facilities.

9. Termination/cancellation of Registration

(1) The Registration granted under the regulation to an entity proposing

to establish / operate LNG Storage Facility may be terminated/
suspended, in case:
a. entity fails to meet the milestones indicated in its DFR submitted to
the Board at the time of seeking Registration; or
b. the entity fails to comply with all the terms and conditions/ service
obligations/technical and safety standards prescribed by the Board
at the time of Registration

(2) The Registration granted under

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the regulation to an entity already
established/operating LNG Storage Facility before the appointed day

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shall be suspended or terminated , in case the entity fails to comply with

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all the terms and conditions, service obligations and technical standards,
specifications and safety standards as per the relevant regulations.

(3) The procedure with regards to the termination of Registration under sub-
regulations 10 (1) and 10 (2) above shall be as under, namely:-

(a) the Board shall issue a notice to the defaulting entity allowing it a
reasonable time to fulfill its obligations under these regulations and
also as per the service obligations specified by the Board;

(b) no further action shall be taken in case remedial action to the

satisfaction of the Board is taken by the entity within the specified
period;

(c) in case of failure to take remedial action by the entity, the Board
may encash the performance bond;

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 (d) the entities registered under the Petroleum and Natural Gas
Regulatory Board (Registration for establishing & operating LNG
Terminals ) Regulations, 2008 shall have to replenish the
performance bond within fifteen days failing which their
Registration shall be terminated.

10. General

i. The entity shall not make use of the assets of the Project for a purpose other
than the one for which registration is granted unless it has obtained approval
of the Board.

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ii. The entity shall not, at any time, assign its certificate or transfer its

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undertaking, or any part thereof, by sale, mortgage, lease, exchange etc; or

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otherwise without the prior approval of the Board.

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iii. If any dispute arises with regard to the interpretation of any of the provisions

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of these regulations, the decision of the Board shall be final.

iv. All issues arising in relation to the interpretation of the certificate and as to
the Terms and Conditions thereof shall be a matter for determination by the
Board and the decision of the Board on such issues shall be final and binding.

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 Schedule – I
Format for Registration
of existing entities in business before the appointed day
(to be submitted on the letter head of the entity as 1 original + 1 copy )

To

The Chairman,
Petroleum & Natural Gas Regulatory Board,
World Trade Center, Ist Floor,
Babar Road
New Delhi-110001.

Sub:- Submission of Information for Registration of liquefied natural gas

terminals;

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Name of the Entity, local address:

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and Telephone numbers, fax
and e-mail ID

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Section I * ( In case of the entities who have already submitted the General
details under Section I hereunder, in any other previous application made to
PNGRB, reference of earlier application with updates if, any alone needs
to be provided along with a soft copy of the same)
1.
A
B
General Details
Name of the Applicant and designation
Type of entity – Public Sector Undertaking (PSU-
Central/State)/Private/ JV/Proprietorship firm/
Others (please specify) (Attach copy of
relevant Act, certificate of registration under
the Companies Act. etc., Articles of
Association/Partnership Deed, etc.)
C Date of incorporation of the entity & date of
commencement of business
D Address of Registered office
E Name, addresses, telephone numbers, Fax, E-
mail ID of Chairman and all Directors/ Partners/
Proprietor
2. Financial Details ( As per last audited accounts in
format prescribed under the Companies Act)
A Share holding pattern
B Share Capital/ Proprietor’s own Funds
C Loans – amount, tenure, moratorium period,
rate of interest, taken from and asset
mortgaged/hypothecated for securing the

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 same (if any)
D Reserves (if any
E Fixed Assets
F Current Assets
G Current Liabilities
H Sales Turnover
I Profit After Tax
(Attach copies of the Annual Report of the
Entity for the last three financial year)

3. Business Activities
A Details of all existing businesses
B Date of commencement of the business for
which registration being requested
C Geographical Areas being covered/to be
covered
D Details of tie-up or collaboration with other
entities

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Section II (LNG)

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4 Ownership & Affiliate Details

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A Details of promoters
B Details of all JVs/Subsidiaries being operated

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and their share holding patterns
C The applicant undertakes to produce all Yes

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relevant records/ documents on demand by
the Board
D Is the entity a body corporate registered under Yes/No
Companies Act, 1956 ?
E Is the entity promoted by body corporate (s) Yes/No
registered under Companies Act, 1956 ?
F Is Disaster Management Plan attached? Yes/No
G Is the project entitled to any subsidy, tax waiver Yes No
or exemption or deferment from the
State/Central Government ? If yes, give details

5 Statutory Clearances
A Whether all statutory clearances have been
obtained related to the activity for which
registration being requested for. Provide details
and attach evidentiary proofs.
B Whether any other eligibility conditions as
prescribed under the Government Policy have
been met. Give details.

6 Project details,
A Name of project
B Location of project
C Capacity of project
D Financing pattern
E Completion schedule, if applicable

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F Whether joint venture project
G Share holding pattern
H Projected capacity, including how much of it is
likely to be available for third party access
I Attach separate write up giving details of the
project alongwith a copy of the DFR
(Attach separate sheets for providing information wherever necessary)

DECLARATION

1. Certified that the above information is true to the best of my/our

knowledge and belief and is correct, complete and truly stated. If any
statement made herein is found to be incorrect, the application is
liable to be rejected & the application fee may be forfeited. I/We
shall be liable for action under the provisions of law.
2. I/We also undertake to pay fees, any other charges etc. which may be
levied by the Board from time to time.
3. I/We certify that the said application is the only application submitted

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and no other application has been or is being separately submitted for

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this purpose by me/ us directly or through any affiliate.
4. I/We undertake to provide information in case of change of the

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business activity, ownership structure or any other change in the

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business for which registration being sought to the Board as and when
occurs and also undertakes that in case there is a change in

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ownership structure the new entity shall abide by the conditions
specified by the Board from time to time.
5. I/we certify that all technical Standards and specifications including
safety standards, as prescribed by the Board, for such activities shall
be met. Further, the entity undertakes to improve such standards in
future as per Board’s regulations.
6. I/We undertake to abide by all other applicable guidelines, policies of
Government and that of the Board related to the activity for which the
registration is being sought and provide details to the Board from time
to time, as applicable from time to time.
7. I/We undertake to submit the details of the business plan and setting
up of infrastructure in respect of the activity for which registration is
being sought, to the Board for the following year before 31st of March
every year.
8. I/We undertake to submit the plan for getting ISO 29001 certification
within a period of three months from the date of registration and
would get ISO 29001 certification within 3 years of issue of this
certificate.
9. The certificate is non-transferable and non-tradable. In case the same
is brought to the notice of the Board, the certificate shall be
cancelled. The Board also can cancel the certificate of registration, in
case of any other violations/non compliance, after giving the Entity
sufficient time to explain.

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 10. I/We undertake to comply with all other obligation specified by the
Board from time to time backed by the copy of Board Resolutions of
the entity.

Date:
Place
Signature of the Applicant (Authorised Signatory)
On behalf of the ………………

Seal of the entity

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 Schedule – II
Format for Registration
of entities under section 15 of the PNGRB Act 2006
(to be submitted on the letter head of the entity as 1 original + 2 copies)

To

The Chairman,
Petroleum & Natural Gas Regulatory Board,
World Trade Center, Ist Floor,
Babar Road
New Delhi-110001.

Sub:- Application for Registration to establish and operate liquefied natural gas
terminals; (refer Annexure – II & II(a))

Name of the Entity, local address:

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and Telephone numbers, fax

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and e-mail ID

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Section I * ( In case of the entities who have already submitted the General

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details under Section I hereunder, in any other previous application made to

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PNGRB, reference of earlier application with updates if, any alone needs
to be provided along with a soft copy of the same)
1. General Details
A Name of the Applicant and designation
B Type of entity – Public Sector Undertaking
(PSU-Central/State)/Private/ JV/Proprietorship
firm/ Others (please specify) (Attach copy of
relevant Act, certificate of registration under
the Companies Act. etc., Articles of
Association/Partnership Deed, etc.)
C Date of incorporation of the entity & date of
commencement of business
D Address of Registered office
E Name, addresses, telephone numbers, Fax, E-
mail ID of Chairman and all Directors/
Partners/ Proprietor
2. Financial Details (As per last audited accounts i
format prescribed
under the Companies Act)
A Share holding pattern
B Share Capital/ Proprietor’s own Funds
C Loans – amount, tenure, moratorium period,
rate of interest, taken from and asset
mortgaged/hypothecated for securing the
same (if any)
D Reserves (if any

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E Fixed Assets
F Current Assets
G Current Liabilities
H Sales Turnover
I Profit After Tax
(Attach copies of audited Profit & Loss
Account & Balance Sheet and copy of the
Annual Report of the Entity for the last three
financial year)

3. Business Activities
A Details of all existing businesses
B Date of commencement of the business for
which registration being requested
C Geographical Areas being covered/to be
covered
D Details of tie-up or collaboration with other
entities
E

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Section II (LNG)

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4 Ownership & Affiliate Details

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A Details of promoters
B Details of all JVs/Subsidiaries being operated

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and their share holding patterns
C The applicant undertakes to produce all Yes

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relevant records/ documents on demand by
the Board
D Is the entity a body corporate registered Yes/No
under Companies Act, 1956 ?
E Is the entity promoted by body corporate (s) Yes/No
registered under Companies Act, 1956 ?
F Is Disaster Management Plan attached ? Yes/No
G Is the project entitled to any subsidy, tax Yes No
waiver or exemption or deferment from the
State/Central Government ? If yes, give
details

5 Statutory Clearances
A Whether all statutory clearances have been
obtained related to the activity for which
registration being requested for. Provide
details and attach evidentiary proofs.
B Whether any other eligibility conditions as
prescribed under the Government Policy
have been met. Give details.

6 Project details,
A Name of project
A Capital cost of project
B Operating cost of project
C Location of project

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D Capacity of project
E Financing pattern
F Completion schedule as per DFR with
quarterly Targets
G Whether joint venture project
H Share holding pattern
I Projected capacity, including how much of it
is likely to be available for third party access
(TPA)
J Attach separate write up giving details of the
project alongwith a copy of the DFR

7. Non-refundable Fee
DD/Cheque No. & Date
Name of Issuing Bank
Amount
(Attach separate sheets for providing information wherever necessary)

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DECLARATION

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1. Certified that the above information is true to the best of my/our knowledge

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and belief and is correct, complete and truly stated. If any statement made
herein is found to be incorrect, the application is liable to be rejected & the

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application fee may be forfeited. I/We shall be liable for action under the
provisions of law.

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2. I/We also undertake to pay fees, any other charges, etc. which may be
levied by the Board from time to time.
3. I/We certify that the said application is the only application submitted and no
other application has been or is being separately submitted for this purpose
by me/ us directly or through any affiliate.
4. I/We undertake to provide information in case of change of the business
activity, ownership structure or any other change in the business for which
registration being sought to the Board as and when occurs and also
undertakes that in case there is a change in ownership structure the new
entity shall abide by the conditions specified by the Board from time to time.
5. I/we certify that all technical and HSE Standards, as prescribed by the Board,
for different activities have been/shall be met. Further, the entity undertake to
improve such standards in future as per Board’s regulations.
6. I/We undertake to abide by all other applicable guidelines, policies of
Government and that of the Board related to the activity for which the
registration is being sought and provide details to the Board from time to
time, as applicable from time to time.
7. I/We undertake to submit the details of the business plan and setting up of
infrastructure in respect of the activity for which registration is being sought, to
the Board for the following year before 31st of March every year.
8. I/We undertake to submit the plan for getting ISO 29001 certification within a
period of three months from the date of registration and would get ISO 29001
certification within 3 years of issue of this certificate.

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9. The certificate is non-transferable and non-tradable. In case the same is
brought to the notice of the Board, the certificate shall be cancelled. The
Board also can cancel the certificate of registration, in case of any other
violations/non compliance, after giving the Entity sufficient time to explain.
10. I/We undertake to comply with all market service obligations and any other
obligation specified by the Board from time to time backed by the copy of
Board Resolutions of the entity.

Date:
Place
Signature of the Applicant (Authorised Signatory)
On behalf of the ………………

Seal of the entity

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 Schedule – II(a)

For Registration under category (ii)

Establishment of LNG Terminal
S.No. Particular Captive Use Contract Merchant
1. Capacity for receiving LNG
by ships
2. Storage of LNG
3. Capacity for Regasification
4. Actual volume of gas expected
to be regasified and dispatched
year wise in the first 5 years of
operation of LNG facility
5. Transport/dispatch capacity
for gas/LNG
6. LNG availability (HOA,
MoU)
7. Capacity required for own use
√ √ √

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8. Capacity, if any (Available for
open access) year wise in the

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first 5 years of operation of
LNG facility

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9. Standards, Code/HSE as per
√ √ √

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regulation
10. Evacuation System - √ √
11. Compliance to Access Code/

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Tolling.
12. Regasification Tariff - √ √

1. √ stands for “required”, the entity may indicate by writing ”Yes”

2. - stands for “not applicable” after this notification.
3. The blank cells need to be filled up with the proposed/existing information by the
entity

(Strike out which ever is not applicable)

Date:
Place
Signature of the Applicant (Authorised Signatory)
On behalf of the ………………

Seal of the entity

Instructions for filling the Application form:

1. All entries in the form and annexed documents should be legible with
no cuttings.

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 2. Details requiring separate annexure/ statement may be provided
giving clear reference of the point against which the same is being
attached.
3. All pages of the application form and all annexure, statements, etc
need to be signed by the person/ official authorized by the applying
entity through a notarised Power of Attorney.
4. Any information/ data filled in the application form need to be
substantiated by attaching relevant proof of the same.
5. The Applicant is required to submit application in duplicate with all the
enclosures and also soft copy of the same should be submitted.
6. Incomplete application is liable to be summarily rejected.
7. The application fee shall be made in favour of ‘Petroleum & Natural
Gas Regulatory Board” payable at New Delhi by a pay order/
Demand draft drawn on any bank in India.
8. The certificate of Registration shall be given by the Board within a
period of 60 days from the receipt of complete application.

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 Schedule - III

Certificate of Registration

1. The Petroleum & Natural Gas Regulatory Board (hereinafter referred to as

“Board”), in exercise of the Powers conferred as per section 61 of the Petroleum
& Natural Gas Regulatory Board Act 2006 (hereinafter referred to as “Act”),
hereby grants Certificate of Registration to M/s
………………………………………………………………………… (hereinafter referred
to as the “Entity”) to establish and operate LNG Terminal at ………………………..
(Name of the Project) subject to the Terms & Conditions set out in this certificate
for a period of 25 years from Å---Æ to < ----Æ .

2. Wherever there is a contradiction between the terms & conditions specified in

this document and any other Agreements signed between the entity and the

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Board, the provision of this certificate, as amended/ modified from time to time,

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shall prevail.

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3. The entity shall abide by the obligations specified by the Board from time to time.

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In case the entity fails to comply with the obligations or any term and condition
specified herein, in full or in part, the Board may impose penalties as per the
provisions of the Act.

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4. The Entity shall be liable for action, in case of any contravention of the Terms and
Conditions of this certificate as per provisions of the Act.

5. The grant of certificate to the entity shall not in any way hinder or restrict the
grant of a certificate to any other entity within the same area.

Secretary
(PNGRB)
Dated:
New Delhi.

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 Schedule-IV
Quarterly submission of data/information by Entity
A Name of Entity

B Activity for which registered

C Date of grant of certificate of registration

D Date of commencement of operations/project

For the Quarter ended

Information / data Cumulative for the year

Plan as DFR submitted to PNGRB Plan as DFR submitted to PNGRB

Vs Vs
Actual Actual

E Financial Details (in Rs. Lakh)

1 Capital Investment
(a) Fixed Assets
Opening Balance

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Direct Additions

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Transfer from CWIP

a
Deletions, if any

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Closing Balance
(b) Capital Work-in-progress

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Opening Balance
Additions
Transfer to Fixed Assets
Deletions, if any
Closing Balance

2 Operating Expenses(give itemwise details)

3 Financial Expenses

4 Depreciation

5 Revenue Earned from registered activity

F Physical Details
Quantity sold
Capacity created

6 Project Completion Status (in % terms)

(as per approved schedule)

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Any other information / data as may be prescribed by Government or may be considered relevant by the registered entity

Note : Information / data as above to be certified by a firm of Chartered Accountants

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