As per media flash, Petroleum and Natural Gas Regulatory Board (PNGRB) has refused to entertain the government order to determine the marketing margin on the sale of natural gas on the basis of the actual marketing cost and returned the file to government.
In December 2011, the government had asked the PNGRB to determine the marketing margin on the sale of natural gas on the basis of the actual marketing cost under the aforementioned Act.
However, in a recent Board meeting, a decision was taken by the PNGRB to return the file back to the ministry on the ground that the Board could not decide on the subject as the product has not been formally 'notified' by the government for arbitration by the PNGRB.
View: This gives a positive signal for companies having presence in LNG, as the message is in their favour. We believe that marketing margin regulation of LNG would be discouraged while notified gas could have regulated marketing. +ve for Petronet LNG and GAIL.
....more info
In December 2011, the government had asked the PNGRB to determine the marketing margin on the sale of natural gas on the basis of the actual marketing cost under the aforementioned Act.
However, in a recent Board meeting, a decision was taken by the PNGRB to return the file back to the ministry on the ground that the Board could not decide on the subject as the product has not been formally 'notified' by the government for arbitration by the PNGRB.
View: This gives a positive signal for companies having presence in LNG, as the message is in their favour. We believe that marketing margin regulation of LNG would be discouraged while notified gas could have regulated marketing. +ve for Petronet LNG and GAIL.
....more info