The Union Ministry of Petroleum & Natural Gas has put the proposal to create a national gas highway development authority on hold.

The decision has come in the wake of opposition from the Petroleum and Natural Gas Regulatory Board (PNGRB), which currently has the powers to authorise pipelines.

In the Budget speech of 2009, the Union Government had proposed to develop a blueprint for long-distance gas highways, leading to a national grid to facilitate transportation of gas across the country. In December 2009, the Union Ministry of Petroleum & Natural Gas had circulated a draft note among various ministries and departments to seek responses.

PNGRB has reportedly opposed the proposal, as a gas highway authority will have curbed the board’s power under PNGRB Act to authorise entities to lay, build, operate or expand city or local natural gas distribution network.