The Case for Entry-Exit System in Gas Transportation

The Entry-Exit (E-E) model, successfully implemented in Europe and the UK, and conceptually mirrored in India's own electricity market, could be the right way forward for the gas market too

- RAJESH MEDIRATTA

As India sets its sights on a cleaner and diversified energy future, natural gas is expected to play a central role. However, the backbone of this ambition- the gas transmission system remains anchored in a model that is fast becoming outdated. The existing Point-toPoint (P2P) system, where gas flows are rigidly tied to specific routes, is creating inefficiencies that could hold back growth of India's gas economy.

If we are serious about increasing the share of gas in energy mix then we must embrace a new approach that offers flexibility, transparency, and ease of trading. It's time to rethink how capacity is booked, tariffs are collected, and gas flows are measured and managed. The Entry-Exit (E-E) model, successfully implemented in Europe and the UK, and conceptually mirrored in India's own electricity market, could be the right way forward for the gas market too.

A Simpler Way to Move

Gas Imagine shipping a package wherein you choose the sender and recipient, and the transporter takes care of the rest. You don't worry about how the package moves, which path it takes, or how many transfers it goes through.

This is exactly how the Entry-Exit gas system works. A gas buyer only books the exit point capacity at its plant, and the seller ensures entry into the network. Everything in between the route, flows, and coordination is handled by the transporters.

By contrast, under the current P2P model, buyers must negotiate separate contracts with each pipeline operator along the gas route, manage multiple bookings and procedures, and are even held responsible for gas imbalances caused upstream. Procuring gas from the KG Basin to North India, for example, may involve three to four different transporters. It's an administrative maze that discourages market participation, particularly in the short-term spot market.

What's Holding us Back?