The energy sector plays a vital role in driving the growth of a nation, and the demand for clean and efficient energy solutions is continuously increasing in India. The Petroleum and Natural Gas Regulatory Board (PNGRB) has introduced new rules in 2025 to streamline the operation and installation of liquefied natural gas (LNG) terminals across the country. The purpose of these regulations is not only to promote transparency and competition but also to ensure the safety and efficiency of LNG facilities. By setting clear guidelines for registration, capacity expansion and compliance, PNGRB aims to build a robust infrastructure to meet India’s growing natural gas needs.

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Overview of PNGRB LNG Terminal Regulations 2025

The Petroleum and Natural Gas Regulatory Board (Registration for Establishing and Operating Liquefied Natural Gas (LNG) Terminals) Regulations, 2025 aim to establish a clear and structured process for setting up and operating Liquefied Natural Gas (LNG) terminals in India. These regulations apply to both new and existing terminals, ensuring compliance with safety standards, business plans and performance guarantees. Entities wishing to build or operate an LNG terminal must first submit an application to the Petroleum and Natural Gas Regulatory Board (PNGRB), including details such as project cost, location and capacity. The regulations also emphasize transparency, which requires regular updates from LNG terminal operators. This structured approach ensures safe, efficient and sustainable growth in India’s LNG and biogas plant sector promotes competitiveness and secures energy supplies for the future.

Key Aspects of the Petroleum and Natural Gas Regulatory Board (PNGRB) Regulations 2025

The key aspects of this regulation are:

1. Scope and Applicability

The newly implemented regulations apply to both new and existing LNG terminals in India. For entities seeking to establish or operate LNG terminals after October 1, 2007, the Regulation sets out a clear procedure for registration and compliance. These rules will also require entities that have already installed LNG terminals to follow the new procedures and submit relevant documents to the PNGRB.

2. Application Process for LNG Terminal

One of the most important aspects of these regulations is the application process. For entities planning to set up an LNG terminal, the rules require them to submit detailed applications before making their final investment decision (FID). These submissions include necessary information such as project location, estimated costs, storage and regasification capabilities, and a detailed business plan. For entities operating LNG terminals before the new rules come into force, they will need to submit information on their operations, including technical details, financial metrics and compliance with safety standards. Transparency in the application process ensures that the PNGRB can effectively regulate the industry and promote competition among entities, which is beneficial to the overall market.

3. Certificate of Registration and Operation

Once an application is reviewed and approved, the PNGRB issues a certificate of registration, which allows the entity to establish or operate an LNG terminal for up to 30 years. This certification comes with a number of obligations, such as complying with safety standards and providing the necessary technical specifications. In addition, entities should submit regular updates to the PNGRB, ensuring transparency and compliance with the regulatory framework.

4. Regasification and Storage Requirements

The regulations also establish specific guidelines for the storage and regasification capacities of LNG terminals. Entities must provide detailed plans for the discharge of regasified natural gas, including pipeline connectivity and tie-up details. These measures ensure that LNG terminals are equipped to meet the growing demand for natural gas, especially in regions that rely heavily on imports for energy needs. In addition, the board puts up a performance bond of ₹25 crore to guarantee timely project delivery and ensure operational efficiency of LNG terminals. This bond is a safeguard that protects both the regulator and the public.

5. Capacity Expansion

As the demand for LNG increases, the need to expand existing LNG terminals becomes inevitable. The regulations also cover the process of capacity expansion. If an entity intends to expand the capacity of its existing terminal, it must apply to amend its existing registration. The board will then review the application, making sure the expansion follows the same standards as the new terminals. This provision is necessary to ensure that the infrastructure keeps pace with the country’s energy demands. In addition, the Board ensures that expansion plans are guided by objectives such as promoting competition, avoiding unnecessary investments, and ensuring adequate availability of natural gas.

6. Suspension and Termination of Registration

The Regulations also address situations where entities may not be able to meet their obligations. If an entity is in violation of the rules, or if it is involved in restrictive business practices, the PNGRB has the right to suspend the registration certificate for up to three months. During this suspension period, the entity is given the opportunity to correct any defaults. If the issues are not resolved within the suspension period, the certificate may be terminated and the performance bond forfeited. These provisions ensure that LNG terminals operate in compliance with the highest standards of safety and fairness, protecting both consumers and stakeholders in the industry.

7. Change of Ownership

In the event of a change in ownership or management control of an LNG terminal, the entity must notify the board and submit the required documentation. This allows PNGRB to maintain accurate records and ensure that new owners are complying with all regulations. The process of amending the registration certificate ensures transparency and continuity in operations.

Also Read: Understanding the CNG/CBG Station Licence

Benefits of the Regulations

The PNGRB Rules 2025 offers several benefits to the LNG sector in India. Here are some notable benefits:

• Promoting Competition: By requiring entities to submit a detailed application and business plan, the rules encourage healthy competition in the LNG sector. This ultimately leads to better value and more choice for consumers.
• Securing the Supply of Natural Gas: Regulations are designed to ensure that LNG terminals contribute to a stable and reliable supply of natural gas across the country. This is critical for industries and consumers who rely on natural gas for their energy needs.
• Ensuring Safety: Mandatory adherence to safety standards will help reduce the risk of accidents and ensure that LNG terminals operate safely and responsibly.
• Clear Guidelines for Expansion: Operators looking to expand their LNG terminals can now follow a clear set of steps to obtain approval, which simplifies the process and reduces uncertainty.

Importance of Compliance with Safety Standards

The PNGRB Regulations 2025 place a significant emphasis on safety and technical standards. Operators must comply with the Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for Liquefied Natural Gas Facilities) Regulations, 2018. This includes adhering to internationally recognized safety standards to prevent accidents, leaks, and other hazards that could affect the environment and public safety. Given the high stakes involved in LNG terminal operations, safety standards cannot be ignored. Proper safety protocols, risk management plans, and emergency response strategies must be in place at all times. This helps ensure the integrity of the LNG terminal and protects both the environment and local communities.

Impact on LNG Terminal Operators

For LNG terminal operators, the PNGRB Rule 2025 introduces several significant changes and requirements. By ensuring that all LNG terminals operate according to standardized rules, the government hopes to promote transparency, competition and safety in the LNG sector. For example, LNG terminal operators must maintain a credible business plan and provide detailed evacuation plans for natural gas. The bank guarantee requirement ensures that entities are financially stable and able to complete their projects on time. The rule also promotes transparency through biannual reporting. Operators are now required to share critical operational data with PNGRB twice a year to increase accountability.

Conclusion

The Petroleum and Natural Gas Regulatory Board (Registration for Establishing and Operating Liquefied Natural Gas (LNG) Terminals) Regulations, 2025 provide a comprehensive framework for the growth and regulation of LNG terminals in India. These regulations not only ensure the safe and efficient operation of LNG terminals but also promote transparency, competition, and consumer protection. As India continues its journey towards energy diversification, the role of LNG terminals and biogas plants will be crucial in meeting the country’s growing energy needs. By complying with these regulations, LNG terminal operators can contribute to India’s energy security while maintaining high standards of safety and environmental responsibility. Operators must stay informed of these new regulations and adapt their strategies accordingly. The future of the energy sector in India is bright, and entities that align themselves with these regulatory changes will be well positioned to succeed in this evolving landscape.