Think Gas Seeks LNG Terminal Fee Cut Amid High Regasification Charges

Think Gas, a major player in India's city gas distribution sector, has petitioned the Petroleum and Natural Gas Regulatory Board (PNGRB) to reduce LNG terminal usage fees by 30%. The company argues that high regasification charges and truck loading fees are creating barriers for third-party access and keeping gas prices high for consumers.

The current cost structure for accessing LNG terminals is prohibitively expensive, according to Think Gas. Regasification charges range from ₹73 to ₹104 per MMBTU, while truck loading fees are between ₹81 and ₹120 per MMBTU. An annual escalation clause of 5% further increases these costs.

Think Gas has also raised a dispute regarding boil-off gas charges, claiming that terminal operators often apply these fees even during continuous operations where no actual boil-off gas loss occurs. The company argues that this is an artificial cost burden that unfairly inflates the final price of natural gas for end-users.