LNG terminal annual fee: Adani's Dhamra challenges PNGRB's new levy proposal
The proposed LNG terminal annual fee under the draft PNGRB (Levy of Fee and Other Charges) Amendment Regulations, 2026 has triggered an important regulatory debate in India's gas infrastructure sector. Dhamra LNG Terminal Private Limited, a subsidiary of Adani Total Private Limited, has formally argued that standalone LNG import terminals were never intended to fall under the regulator's recurring annual fee framework. Instead of challenging the fee amount alone, the company has questioned the very legal basis for extending continuous annual levies to assets that have historically operated under a one-time registration regime. Indian Petroplus analysis suggests that the dispute could redefine how LNG terminals are regulated in the coming years.
The draft regulations introduce annual charges on installations while also proposing penalties of up to Rs 1 crore for regulatory defaults. Dhamra has argued that LNG terminals require limited post-commissioning supervision compared with pipelines or city gas distribution networks and therefore should not face the same recurring regulatory structure. The company has also opposed any retrospective application of the LNG terminal annual fee, stating that investments were made under a different regulatory framework that never envisaged annual levies.
The outcome of this consultation could shape future investment sentiment across India's LNG sector. With PNGRB scheduled to hold an Open House on July 28, stakeholders from LNG terminals, CGD companies and pipeline operators are expected to seek changes before the regulations are finalised. Indian Petroplus analysis believes the final decision on the LNG terminal annual fee will become an important precedent for future LNG infrastructure investments while also influencing regulatory certainty across India's expanding gas market, PNGRB LNG terminal, Dhamra LNG, Adani Total, LNG terminal fee, PNGRB regulations, LNG industry India.