Section 14(6) in The Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008
(6)Treatment of line-pack volume in natural gas pipeline shall be as per the procedure indicated below :-(a)Assessment of the volume of natural gas required as line pack in the natural gas pipeline as and when commissioned shall be as specified in the relevant regulations for technical standards and specifications, including safety standards.(b)The line-pack value of natural gas in natural gas pipelines and included in the total capital employed or determination of the unit natural gas pipeline tariff shall be considered as a non-depreciating fixed assets and the value to remain fixed over the economic life of the project.(c)The value of the line-pack volume shall be derived by multiplying the volume of line-pack by the average cost of natural gas at the point of injection of natural gas into the natural gas pipeline at the time of commissioning of the natural gas pipeline.(d)The salvage value of the line-pack volume at the end of the economic life of the project shall be equal to its value assessed at the time of its capitalization specified under sub-clause (b) and shall be considered as a project inflow.
