PNGRB New Data Rules: Crackdown on oil and gas companies! PNGRB’s new strict rules on data reporting; Heavy fine up to ₹1 crore will be imposed on wrong information or omission

India’s hydrocarbon sector regulator, the Petroleum and Natural Gas Regulatory Board (PNGRB), has made the data disclosure and technical reporting regime extremely stringent for oil, natural gas and city gas distribution (CGD) companies operating across the country. The regulator has given clear instructions that it will be mandatory to provide every data related to gas pipeline network, PNG-CNG supply, infrastructure expansion and safety standards to the board on time and with 100 percent accuracy.

Under this new regulatory framework brought to increase transparency in the energy sector and protect the interests of consumers, the responsibilities of the companies have increased significantly. If any public or private oil-gas company furnishes false figures, conceals essential operational data or fails to file reports within the deadline, it will be liable to heavy financial penalty and strict punitive action.

As per the amended provisions implemented by the regulator, oil-gas companies and pipeline operators will have to ensure strict compliance in the following key areas:

• 1. Real-Time Infrastructure and Operational Data: Companies will have to regularly share accurate data related to the expansion, capacity utilization and gas pressure of their natural gas pipelines (NGPL), petroleum product pipelines (PPPL) and CGD networks.

• 2. Mandatory Third-Party Technical and Security Audits: Under the new rules, it has been made mandatory for companies to conduct safety and technical audits from recognized third-party agencies (TPA) during design, construction, commissioning and operation and submit their reports to the board.

• 3. Pre-construction Mandatory Disclosures: Detailed Feasibility Report (DFR) and all documents related to environmental clearance will have to be submitted on the PNGRB portal at least one month before the construction of any new project or pipeline.

• 4. Consumer Service and Grievance Redressal Data: City gas companies will have to make public the data related to the actual speed of providing PNG connections, metering accuracy and resolution of consumer complaints in a transparent manner.

The regulator has laid down a clear penal framework for non-compliant companies under the PNGRB Act and related amended regulations:

• Early notice and opportunity for correction: If data discrepancy or violation of rules is noticed by any entity, then reasonable time will be given to take corrective steps by first giving notice to the concerned company.

• Civil penalty up to ₹1 crore: If the company fails to take corrective action within the prescribed timeline, the Board will be liable for penalty for each contravention. Civil fine up to ₹1 crore Can apply.

• Additional penalty of ₹10 lakh per day: Daily from the first day onwards in case of continuous violation or persistent failure in data reporting Additional daily fine up to ₹10 lakh Will be recovered.

• Operational suspension in severe cases: If there is an imminent threat to public safety due to data suppression or technical failure, PNGRB will have the right to suspend the license and operations of the concerned company with immediate effect.

In recent years, the National Gas Grid and City Gas Distribution Network has expanded to more than 300 Geographical Areas (GAs) across India. However, it had come to the notice of the regulator that many companies were not submitting the targets set under their Minimum Work Program (MWP), actual data of pipeline laying and safety inspection reports on time.

Moreover, in some cases, consumers were facing inconvenience due to non-timeliness of information on technical issues such as supply interruptions or leakages. The regulator believes that accurate, standardized and transparent data from all companies is essential to effectively implement ‘One Nation, One Gas Grid’ and integrated tariff system.

This drastic step will see long-term reforms in the oil and gas sector:

• Impact on companies: Private and public companies like ONGC, GAIL, IOCL, BPCL, HPCL, Adani Total Gas, IGL and MGL will have to devote additional resources to their internal audit, data management systems and security compliance.

• Benefits to common consumers: Regular monitoring of the pipeline network and accurate data flow will prevent gas leakage accidents, reduce delays in getting domestic PNG connections and ensure uninterrupted availability of gas at CNG stations.