Oil regulator PNGRB has rejected HPCL’s objections to consultations it had initiated to break the stranglehold of PSUs on profitable pipeline offering jet fuel to Mumbai airport, announcing the refiner will get a formal possibility to make its case against the flow.
In a February 21 order, the Petroleum and Natural Gas Regulatory Board (PNGRB) stated it had on November 7, 2016, received a request from Reliance Industries in search of statement of two pipelines emanating from Hindustan Petroleum (HPCL) and Bharat Petroleum’s (BPLC) refinery and terminating at Mumbai International Airport as a commonplace carrier in order that any 0.33-birthday celebration on open may share the equal get right of entry to and non-discriminatory foundation.
PNGRB wrote to both HPCL and BPCL looking for specific clarifications. After repeated reminders, HPCL adverse the circulate mentioning that the PNGRB Act presents for the handiest town and nearby distribution networks for gasoline to be used as common carriers.
Subsequently, PNGRB initiated a public consultation on Reliance’s request.
HPCL then filed an evaluation petition with PNGRB declaring that “the Board has shaped its opinion without consulting the entity owing ATF pipelines.”
PNGRB in its order stated HPCL had given written objections within the consultation system.
On HPCL’s contention that it becomes not given a possibility of being heard, PNGRB stated the law presents that “after final of public session technique, a possibility of being heard is to take delivery of to the worried entity within a minimum note duration of 21 days”.
“As the perspectives and comments have been acquired and people had been net-hosted, the PNGRB now offers a possibility to HPCL for a formal hearing as per provisions underneath Section 20(2) and Regulation 10(1)(b). HPCL may additionally submit a large illustration to the Board and appear for a hearing on April five, 2019,” the order said.
BPCL and HPCL built and operate separate pipelines from their Mahul refineries in Mumbai to supply jet fuel (ATF) to airways on the Chhatrapati Shivaji International Airport at Santacruz inside the town.
Reliance, which produces a fourth of India’s aviation turbine gas (ATF), desires get admission to those pipelines with a view to get a pie of Rs 10,000 crore fuel trade that happens at indeed one of Asia’s busiest airports.
During the consultations, Reliance and personal airways felt competition amongst gasoline suppliers would convey down fees, but HPCL and BPCL said the pipelines are their “captive” infrastructure to take merchandise out of the refineries and giving third birthday party access to them might hurt their operations and profits.
If applied, it might allow an airline to import fuel and use the infrastructure on the refineries located at the coast to transport it to the airport. An organisation like Reliance can deliver the gas from its refineries at Jamnagar in Gujarat to Mumbai and use pipelines to take it into the airport.
In its remarks, Reliance stated the worldwide ATF demand at Chhatrapati Shivaji International Airport is 1.Four million tonne per annum, and it’s miles “genuinely vital” that access to the BPCL and HPCL ATF pipelines is to be had to other jet gas advertising oil companies to service this call for.
“Non-availability of access to the pipeline would deny to the closing consumers the gain of opposition,” it had written to PNGRB.
Stating that as a minimum two-thirds of the capability in the twin pipeline is spare, it reported an alternative of laying the 0.33 pipe would create environment and protection chance besides resulting in infructuous investments.
Bringing ATF by street tankers is likewise no longer a choice as four hundred avenue tankers could be required to ply at the already clogged Mumbai roads, it had stated.