The Ministry of Petroleum & Natural Gas has notified the Rules on Eligibility conditions for Registration of Liquefied Natural Gas Terminals (LNG) with the objective of promoting the setting up of LNG Terminals in an environment of equitable access and commercial transparency so as to foster higher availability of imported Liquefied Natural Gas in the country. The salient eligibility conditions for registration of LNG Terminal are as under:
(a) offer at all times, after registration, 20 per cent of its short term(less than 5 year contract) uncommitted re-gasification capacity or 0.5 MMTPA, whichever is higher, as common carrier capacity;
(b) 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;
(c) furnish a bank guarantee for an amount equal to 1 per cent of the estimated project cost of the liquefied natural gas terminal or Rs. 25 crore, whichever is less.
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