GIGL fined Rs1cr for 'unauthorised' pipeline
GSPL India Gasnet (GIGL) has received a harsh rebuke and a Rs 1cr ($119,000) fine from the PNGRB for laying an "unauthorised" spur line from Rohtak to Panipat in Haryana.
"Considering the unauthorised laying of the Rohtak to Panipat pipeline as a violation of terms and conditions of the authorisation, under Section 28 of the PNGRB Act, a civil penalty of Rs1cr ($119m) shall be paid by GIGL within 30 days," wrote the PNGRB on October 15 (2024). GIGL is a pipeline consortium of Gujarat State Petronet (52%), IndianOil (26%), Bharat Petroleum (11%) and Hindustan Petroleum (11%).
Signed by PNGRB chairman AK Jain and members Gajendra Singh, AK Tiwari and A Ramana Kumar, the 26-page order says the PNGRB will authorise the pipeline only after GSPL pays the fine. Trouble began when the PNGRB sent a show-cause notice to GIGL on April 12 (2023) over the 61.5-km spur line.
In its defence, GIGL maintains that no authorisation was needed as the end point of the spur line falls under its Mehsana to Bhatinda pipeline tariff zone. GIGL further claims the only difference is that the PNGRB calculates the tariff from the trunk Mehsana-Bhatinda pipeline, while GIGL calculates it from the endpoint of the Rohtak spur line.
But the order notes: "It is the duty of the officers concerned to appraise management about the Act's correct regulation provisions; it has been observed that the understanding of GIGL's officers regarding the interpretation of the PNGRB Act and regulations is flawed, which results in unauthorised activities by GIGL." The order warns GSPL and IndianOil officials to be more cautious while interpreting the PNGRB Act and to seek clarification from the Board if in doubt.
GIGL claims the Rohtak-Panipat pipeline is a spur line to supply gas to IndianOil's 15m t/y Panipat refinery. "However, as per regulatory provisions, a spur line is laid to connect a consumer and not another trunk line; hence, connecting the Rohtak-Panipat pipeline to the Dadra-Panipat pipeline is a violation of section 2(1)(0) of the PNGRB (Determining Capacity of Petroleum, Petroleum Products and Natural Gas Pipeline) Regulations, 2010," writes the PNGRB.