Library / Gas Pricing and Domestic Demand Regulations 2023
Gas Pricing and Domestic Demand Regulations 2023
Page 9 of 17
(9) Upon satisfactory due diligence, a domestic gas aggregator shall issue the gas purchase order to a wholesale customer. (10) A gas purchase order shall specify — (a) the lessee expected to supply the required natural gas : (h) the quantity and quality of marketable natural gas to be supplied to a wholesale customer ; (c) the price payable by the wholesale customer based on sections 167 and 168 of the Act at the marketable gas delivery point ; (d) the location for the delivery of the natural gas pursuant to section 110(7) of the Act, (e) the delivery schedule ; and (7) such other details as may be determined by the domestic gas aggregator. (11) Where the location referred to in subregulation 10(d/) of this regulation is different from the marketable gas delivery point, the wholesale customer shall be responsible for the applicable transport tariff from the marketable gas delivery point to such location. (12) The issuance of a gas purchase order by a domestic gas aggregator shall be sufficient evidence that quantity of gas has been allocated to the wholesale customer pursuant to the domestic market demand requirement. (13) A domestic gas aggregator shall allocate gas purchase orders in the same sequence as indicated by the Authority under regulation 10(1) of these Regulations, provided that the domestic gas aggregator may make such modifications as required in order to ensure that each producer provides all the required volumes of one or more wholesale customers. (14) Upon the issuance of the gas purchase order to a producer, the producer and wholesale customer may enter into a gas purchase and sale agreement pursuant to section 156 of the Act, provided that where the parties intend to continue to make use of the escrow account mechanism under section 154(g) of the Act, the parties shall continue to adhere to the — (a) aggregated prices determined by the domestic gas on Domestic Based Price ; and 2gregator based (b) wholesale prices determined by the Authority on a yearly basis for the power and commercial sector, and on monthly basis for the gas based industries. (15) Where a producer and wholesale customer enter into a gas purchase and sale agreement, or other agreement prior to the effective date of the Act, and such agreement continues, the domestic gas aggregator shall send an adjustment to the earlier gas purchase order, in order to adjust the order to the provisions of the Act.
RegulationsPDF20232023-029