Oil ministry notifies eligibility norms for registration of LNG terminals

The ministry of petroleum and natural gas has notified the eligibility conditions for registration of liquefied natural gas (LNG) terminals so as to promote the setting up of LNG terminals that offer equitable access and commercial transparency.

The new rules notified today are intended to foster higher availability of imported liquefied natural gas in the country, an official release said today.

Accordingly, to be eligible for registration of LNG terminal, the entity should, after registration, offer 20 per cent regassification capacity, or 0.5 MMTPA, whichever is higher, as common carrier capacity for the five-year contract period.

The LNG terminal should adhere to the technical standards and specifications, including safety standards in activities relating to petroleum, petroleum products and natural gas, as prescribed by the board by regulations, which are in force, including those prescribed by the Oil Industry Safety Directorate.

Those intending to set up an LNG terminal should furnish a bank guarantee for an amount equal to 1 per cent of the estimated project cost of the liquefied natural gas terminal or Rs25 crore, whichever is less.