ENERGY TRANSACTION

COURSE PLAN &

PEDAGOGY SEM IX 2021
PROF AKTYAGI
INDUSTRY FELLOW & PROFESSOR ( UPES – SCHOOL OF LAW )
FORMERLY: GENERAL MANAGER, OIL & NATURAL GAS CORPN. INDIA
ALUMINI OF PUNJAB UNIVERSITY - CHANDIGARH
 NON
RENEWABLE
FOSSIL FUEL
SOURCES

OIL NATURAL GAS COAL

 RENEWABLE
ENERGY
SOURCES

SOLAR WIND

GEOTHERMA
TIDES/WAVES BIOMASS HYDRO
L
 FUTURISTIC
ENERGY
SOURCES

ULTRA DEEP
WATERS &
HARSH
HYDROGEN GAS HYDRATES CLIMATE
PROSPECT

ALGAES COAL TO LIQID COAL TO GAS

 What is Energy Transaction ??
What are we going to Study ??
 Different kinds of transactions/trades in different energy & power segments & markets-
 Non renewable
 Renewable
1. Fossil fuels - coal, oil , natural gas and their variables
2.Renewables- solar, wind ,ocean tides & waves, biomass, hydro, geoth.

POWER PLANTS
Production /Transporatation/Distibution of Power/Electricity
Futuristic Energy Sources : Hydrogen/Algaes/Gas Hydrates/CTL/CTL
How are we Going to Study ?

 Energy Sector Verticals , Concepts & Business Operations/Value loops/ Operational Work
Flows for every Energy Vector ie Oil, Natural gas , Coal , Renewables, /Markets/ Transactions
/Trading at all levels - Feedstock Sourcing /Power Production – Transmission – Distribution-Usage
level- Industrial-Domestic/Efficiencies/Environment & Climate Sustainence/Carbon Capture/Kioto
& Other Global Protocols & India’s Commitment/Power Tarrifs/subsidiaries/Power
Efficiencies/Global Picture
 Regulatory & Policy aspects of aforesaid Power Sources & Power Transactions
DGH/PNGRB/Coal Regulators/Power regulators – CERC/SERC
 Energy & Power sector Laws in O&G/Coal Sector/Renewables/Power-Electricity Acts
 Electricity Transactions & India Vision2040 & Global Env./Cimate Commitments
 COURSE PLAN & PEDAGOGY

 3 Credts ie 36 Lectures
 2 Lectures Per week
DELIVERY MODE
 Synchronous/Live session
 Asynchronous – Not Live /recorded versions – Lectures, Master classes, videos from YouTube and
other sources
INSTRUCTIONAL PLATFORMS
 LMS/eTools/CAD
 ASSIGNMENTS – Home Assignments ; Quiz/Tests -Graded / Non Graded/
ASSIGNMENTS Contd.

 Discussion Platforms/Blog /Articles Wrting

 Other Online Tools shared in Course Plan – Educational Web Sites ( some suggested ),
Journals , Case Laws /lecture specific links in Suggested Readings /e library etc
etc/YouTube Videos etc
 Energy Transaction Business & Purpose

 Business & Business Operations/Value loops/Work Flows/Markets/ Transactions

/Trading at all levels - Feedstock Sourcing /Power Production – Transmission –
Distribution-Usage level- Industrial-Domestic/Efficiencies/Environment & Climate
Sustainence/Carbon Capture/Kyoto & Other Global Protocols & India’s
Commitment/Power Tarrifs/subsisiaries/Power Efficiencies
 Regulatory & Policy aspects of Power Sources & Power Transactions
DGH/PNGRB/Coal Regulators/Power regulators – CERC/SERC
 Energy & Power sector Laws in O&G/Coal/Renew./Power-Electricity Acts
 Electricity Transactions & India Vision2040 & Global Env./Cimate Commitm.
Energy Transaction in O&G Business

 Energy Transaction in O&G Business

- Production & Movement from GGS to Pipelines & Power Plants
Pipeline Transaction & Handling Cost
O&G Pricing – Being Done by MOPNG directly – Administered
- Depending on National & Global factors
- Kind of O&G Field
- O&G Trading Exchanges – MCX; IEX ( with in Wndow )
- LNG /LPG Gas Stations - Automobile & Domestic Gas Transactions
Contd. 11/8

 Introduction Energy Transaction In Coal

- Tonnage Cost
- Transporation Cost
- Depends on Coal type Lignite/Bituminite/Anthracite
- Imported or Domestic
- Import Pricing Model – Long Term Negotiations or From Spot market
- trading from MCX for Domestic is possible
- Price Hedging – Transactions
Energy – Power Transaction from Plants to
Users

 Energy – Power Transaction From Power Plants to Users

Energy Cycle of Transactions :
Energy Raw Materials/Sources –
O&G/Coal/Renewables/Hydro/Nuclear/Bio Mass/Geothermal
Generate Energy – Heat /Mech
Conversion of Heat /Mech Energy INTO Electricity at Power Plants
Elect. Transacted --- Transmission Lines – Distr. Lines – Consumers
CERC / SERC Eco system & IEX /MCX are the Enablers
Regulatory Bodies in Energy/Energy Trans. in
India – ORG.ECOSYSTEM

O&G - Directorate General of Hydrocarbond (DGH) & PNGRB

COAL- Coal Regulatory Auth. Of India – (IBM & Directorate Of Mines &Safety)
Nuclear- AEC/DAE/ ----- AERB NRA 1962/ Nuclear Safety Reg. Auth.Bill2011
/Civil Liabilty Act 2010
POWER - CEA ----- CERC /SERC Elect. Act 2003 /2018
Renewable Energy ---- CEA – CERC – Renewable Acts 2015/2017
RE Dev Agency & Authority at State Level
Refineries – Energy Transaction

 Refineries :
 Crude Oil goes to refineries through pipeline Net work
 crude oil is transformed and refined into more useful products such
as petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene,
liquefied petroleum gas, jet fuel and fuel oils.
Refineries & Transactions contd.

 Oil refineries are typically large, sprawling industrial complexes with extensive piping running

throughout, carrying streams of fluids between large chemical processing units, such as distillation
 columns.
 The crude oil feedstock has typically been processed by an oil production plant. There is usually an 
oil depot at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid
products.
 Petroleum refineries involve different processing units and auxiliary facilities such as utility units and
storage tanks.
 Each refinery has its own unique arrangement and combination of refining processes largely determined
by the refinery location, desired products and economic considerations.
 Transaction & trading including exports are done as per market driven prices through trading Exchanges
& Houses
PNGRB – Regulatory Functions

 CHAPTER I
 Constituted Under PNGRB Act 2006/ notified Under Gazette Note 31 June
 Purpose – Protect Consumer’s Interest & Entities engaged in specified Activities wrt
Petroleum/Petroleum Products/Natural gas
 Promote Competitive Markets
 AND for all matters connected there with or Incidental there too
 CHAPTER II Further Mandate to Board
 To Regulate Refining /Processing Storage/Transport/Distribute/Market & Sale of
P+PP+NG
CHAPTER II Contd.

Vision : Creation of Vibrant Energy Market /with Rapid & orderly Growth/Throw
Investment Facilitation ; Leading to Efficient Refining/Transport/Distribution of …
 While ensuring minimal Cost /High level of Consumer Interest Protection (Through Fair
Trade Practices & Competition )
 CHAPTER III Function & Powers of Board
 Ensure Adeqate Availability/Price Display/Monitor Prcies and prevent Restrictive Trade
Practices by Entities/ Secure Equitable dist. Of all products/Enforce Retail Service
Obligations/Monitor Transport Rates/Levee Fees & Charges as determined by
Regulations/Maintain Data Bank/Lay Down,by Regulations & specifications including
Safety Stds in all activities & Facilities/Any other Function directed by GOI
 SECTION 12 Powers wrt Complains & Dispute Resolution
 SECTION 13 Board Procedure for addressing Section 12
 SECTION 14 Register
 SECTION 15 REGISTRATION OF ENTITIES
 SECTION 16 AUTHORIZATION
 SECTION 17 APPLICATION FOR AUTHORIZATION
 SECTION 18 PUBLICITY OF APPLICATION
 SECTION 19 GRANT OF AUTHORIZATION
 SECTION 20 DECLARATION wrt Laying Building etc of of Common Carrier or Contract Carrier for
Pipeline etc/City Gas/Local NG Dist Net work
PNGRB ACTs Contd.

 Section 21 Right of 1st Use

 Section 22 Transportation Tarrif (Policy/Tarrif Discovery Mechanism/Process)
 Section 23 Suspension or Cancellation Of Authorization

 CHAPTER – V SETTLEMENTS OF DISPUTES

 Section 25 Filing Of Complaints
 Section 26 Powers to Investigate & Settle Disputes
 Section 27 Factors to Considered By Board
 Section 28 Civil Penalty For Contravention Of Directives by PNGRB
Chapter VI- Appeals & Appelate Tribunal

 Section 30 Appeals & Appelate Tribunal : Appelate Tribunal Under Elect. Act 2003 to work as PNGRB
Appelate Tribunal too
 Section 31 Tech Member in PNGRB Appelate Tribunal : to be added from the Panel Prepared by Search
Committee
 Section 32 Terms/References & Conditions under Section 31 : To be appointed from the Panel Prepared by
Search Committee
 Section 33 Appeals tp Appelate Tribunal :
 Section 34 : Procedures & Powers of Appelate Tribunal :
 Section 35 : Powers of Appelate Tribunal : all Powers
 Section 36 : Orders by Appelate to be executable as Decree
 Section 37 : Appeal to Supreme Court
Chapter VII Finance/Accounts/ Audit

 Section 38 Grant By Govt. to meet the Salary/Allowances/Retirement Fun

 Section 39 Funds :
 Section 40 Accounts & Audit :
 Section 41 Annual Reports : for Tabling in Parliament
Section VIII Powers Of Central Govt. to Issue
Directives

 Section 42 Issue Directions : Can Issue Directive to PNGRB wrt issues of

 Public Interest /Incresing Petroleum Prod./ NG Supply/their equitable
distribution/ensuring availability
 No directives on day to day affairs of PNGRB
 PNGRB to be duly Consulted before issue of Orders
 Section 43 : Taking over Control & management & Business Premises of Any Entity
/Retail Outlets in Public Interest
 In the Event of War/Natural Calamity/Such other Circumstances
 Will be given the opportunity ofHearing before Control as far as feasible
Chapter IX Offences by Entities &
Punishment (Section 44-50)

 Section 44 Punishment for Contravention of Directions of Board

 Section 45 Penalty for willful failure to Comply with Appelate Orders
 Section 46 Punishment For Unauthorised Actvities :
 Section 47 Punishment for Establishing/operating LNG Terminal without Registration
( as per Section 15 )
 Section 48 Laying/Building/Operating/Expanding a Common Carrier or Contract Carrier
Pipeline System---
3Yr Imprisionment /25 Crore Fine /or Both /10 L fine per day for continuing
Contravention
 Section 49: Punishment for willful damages to Common Carrier or Contract Carrier
 Section 50 : Offences by Companies
 CHAPTER – X ( MISC.)
 Section 51 : Maintenance of Data Bank / Informations /Documents/Ops
 Section 52 : Obligations Of Entities
 (1) Shall maintain Documents/records/ Allow all Kinds of Inspections/ Commence
activities & Ops as per Approval/Authorizations/Maintain Register/Agreements with
Board/for Pipeline Usages/for supplying …/Compliance with marketing Service
obligations/retail Service Obligations
PNGRB 2006 - Section 52 Contd. –
Obligations of Entities (Section 52)

 Section 52 Contd .
 2) Board can allay any Inf. For ensuring Transparency & Ownership
 3) Board having Powers for inspection & obtain Information from Entities
 4)Inspecting Officers have Powers under Company Act 1956 ( 209 A) for enforcement of
authorization Conditions
 5) Entity’s duty to operate as as given under section
 6)Board to maintain Confidentiality of Informations received from Entities
( Except on the ground of Public Interest )
 Section 53 – Furnishing of Returns to Central Govt.
 Section 54 – Chair persons/Members to be Public Servants
 Section 55- Protection Of Action Taken in Good Faith
 Section 56 – No Jurisdiction of Any Kind to Civil Courts
 Section 57 – Cognizance Of Certain Offences
 Section 58 – Delegation of Responsibilities by PNGRB
 Section 59 - Power to remove Difficulties in Business Functioning etc
a)Possible on all Chapters/Sections of PNGRB Act except Chapter VI ( Power to Settle
Disputes ) b) And Power to make Regulations (Section 61)
 Section 60 Power of Govt. to make Rules
 Section 61 Power of PNGRB Board to Make Regulations
 Section 62 Rules & Regulation to be Tabled in Parliament
 Section 63 Transitional Arrangements