Oil & Gas Sector Check - Progressive Regulations For Pipeline Industry: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Direct Report.The Petroleum and Natural Gas Regulatory Board has revised natural gas pipeline tariff regulations. While the expected return ratio remains the same (~12-14% range), tariff determination for pipelines by the regulator have been amended, to reflect more ground realities and support economics of newer pipelines. Few highlights include:capacity utilisation ramp up to occur over a 10-year period instead of five years,volume adjustment would now be possible in case actual volumes are higher than normative volumes,capacity expansion of pipelines from new gas sources would be exempted for tariff calculations for five years lower tax rate of 25.2% would be applied prospectively (and no retrospective taxation),there would now be provision for transmission losses,unified tariffs will now be applicable over three zones versus two earlier,The PNGRB may allow a gradual annual increase in the tariffs,integrated tariffs for inter connected pipelines of a single entity will now be introduced..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Oil & Gas Sector Check - Progressive Regulations For Pipeline Industry: ICICI Direct

Capacity expansion of pipelines from new gas sources would be exempted for tariff calculations for five years.

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