India’s downstream oil and gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) is set to take up the role of the market regulator for the natural gas sector, when the planned natural gas trading hub comes into being, much on the lines of the capital markets regulator Securities and Exchange Board of India (SEBI).
“The government is quite eager to establish the trading platform and the hub as soon as possible and has entrusted the work to suggest overall structure of the platform, the path forward and its pre-requisites to a professional firm engaged through Oil Industry Development Board (OIDB). PNGRB is expected to play the role of the market regulator, similar to SEBI in case of stock exchanges,” PNGRB Chairman D K Sarraf told ETEnergyWorld in an interview.
He added that a different entity would act as system operator, like POSOCO for power exchanges. And PNGRB is in the process of hiring a consultant for drafting requisite regulations. “We are meeting global gas exchange regulators and industry players to gain international experience on this. Lack of adequate gas pipelines and volumes to begin with may be an issue. However, that should not deter us from going ahead as opportunity cost of waiting for ideal conditions is huge,” Sarraf said. Read More