Hydrogen Transport Pipeline Regulatory Framework .
1. Introduction
Hydrogen is increasingly being treated as a major energy carrier for decarbonising industries such as steel, refining, chemicals, shipping and heavy transport. However, large-scale hydrogen deployment requires infrastructure capable of transporting hydrogen safely and economically from production facilities to storage sites, industrial consumers, export terminals and other users.
Hydrogen transport pipelines present a distinctive regulatory problem. Although some existing natural-gas pipelines may potentially be repurposed for hydrogen, hydrogen has different physical and safety characteristics. It can cause material degradation, has a wide flammability range and requires appropriate standards for compression, leak detection, metering, pressure management and emergency response.
A hydrogen pipeline regulatory framework therefore normally addresses:
authorisation and licensing;
route approval and land acquisition;
technical and safety standards;
environmental approvals;
construction and operation;
third-party access;
tariffs and network charges;
network ownership and unbundling;
repurposing of natural-gas pipelines;
cross-border hydrogen transportation;
liability and insurance; and
regulatory supervision and enforcement.
The modern regulatory approach is illustrated particularly well by the EU Hydrogen and Decarbonised Gas Market legislation and the UK's Energy Act 2023. India provides an important additional example because its existing petroleum and natural-gas pipeline framework contains principles concerning common-carrier access, authorisation and regulatory oversight that may influence the eventual development of dedicated hydrogen-pipeline regulation.
2. Meaning of Hydrogen Transport Pipeline Regulation
A hydrogen transport pipeline is infrastructure used to transport hydrogen through pipelines, generally under pressure, from one point to another.
The EU's Directive (EU) 2024/1788 defines a hydrogen network as onshore and offshore pipelines used to transport high-purity hydrogen for delivery to customers. It distinguishes hydrogen transmission networks from hydrogen distribution networks. (EUR-Lex)
This distinction is legally significant.
Hydrogen transmission pipelines
These generally:
operate at relatively high pressure;
transport hydrogen over longer distances;
connect production facilities, storage facilities, terminals and other networks;
may cross national borders;
require extensive infrastructure planning.
Hydrogen distribution pipelines
These generally:
operate within a local or regional area;
supply directly connected customers;
have a more limited geographical function;
may be subject to a somewhat lighter regulatory regime.
The EU framework expressly distinguishes these two categories. (EUR-Lex)
3. Main Objectives of a Hydrogen Pipeline Regulatory Framework
A comprehensive regulatory system attempts to reconcile several competing objectives.
A. Safety
Hydrogen is highly flammable and has characteristics requiring specialised engineering controls. Pipeline legislation therefore needs to regulate:
pipeline design;
pressure limits;
materials;
welding;
corrosion and embrittlement;
leak detection;
valves and isolation systems;
compressor stations;
emergency shutdown;
inspection and maintenance.
B. Infrastructure investment
Hydrogen networks require significant capital investment. Regulation must provide sufficient certainty regarding:
licences;
tariffs;
permitted returns;
network access;
cost recovery;
government support;
long-term demand.
C. Competition
If one company controls an essential hydrogen pipeline, it could potentially restrict competing hydrogen producers or consumers.
Consequently, regulatory systems increasingly use:
third-party access;
transparent tariffs;
non-discrimination;
network codes;
unbundling;
regulatory supervision.
The EU's 2024 framework, for example, establishes regulated third-party access to hydrogen networks based on published tariffs and non-discriminatory treatment. (EUR-Lex)
D. Environmental protection
Pipeline projects may require:
environmental-impact assessment;
ecological approvals;
water approvals;
land-use permissions;
construction permits;
restoration obligations.
E. Energy-system integration
Hydrogen pipelines increasingly interact with:
renewable electricity;
electrolysers;
hydrogen storage;
natural-gas networks;
ports;
industrial clusters;
carbon capture systems.
Therefore, pipeline regulation cannot be isolated from broader energy regulation.
4. Licensing and Authorisation
One of the first regulatory questions is whether an entity requires government authorisation to construct and operate a hydrogen pipeline.
A modern licensing framework should identify:
who may construct the pipeline;
who may operate it;
technical qualifications;
financial capability;
safety management requirements;
route approval;
environmental compliance;
emergency plans;
financial security and insurance.
The EU Directive requires Member States to establish transparent authorisation procedures for hydrogen infrastructure and requires those procedures to be proportionate and non-discriminatory. (EUR-Lex)
The UK provides a more explicit hydrogen-specific example. Part 3 of the Energy Act 2023 establishes a framework for licensing hydrogen pipeline projects. It defines a hydrogen pipeline project as construction, alteration or operation of a pipeline for conveying hydrogen and provides for designation of persons in relation to particular hydrogen pipeline projects. (Legislation.gov.uk)
This demonstrates an important regulatory principle: hydrogen pipelines are increasingly moving from being treated merely as modified gas infrastructure toward being recognised as a distinct regulated infrastructure category.
5. Route Approval and Land Rights
Pipeline development inevitably affects landowners and public authorities.
A regulatory framework therefore needs rules concerning:
acquisition of rights of way;
easements;
compulsory acquisition where permitted;
compensation;
access to private land;
crossing roads and railways;
crossing rivers and environmentally sensitive areas;
restoration of land.
In India, existing pipeline jurisprudence provides useful principles even though the statutory framework was developed principally for petroleum and natural gas.
In Adani Gas Ltd. v. Union of India, the Delhi High Court considered the regulatory structure surrounding petroleum and natural-gas pipelines, including governmental authority relating to pipeline routes, design, construction and operation. (Indian Kanoon)
For hydrogen, similar legal issues will arise, but a dedicated framework would need to expressly address hydrogen infrastructure rather than simply assuming that natural-gas rules automatically apply.
6. Technical Safety Regulation
Safety is perhaps the most important component of hydrogen pipeline regulation.
The regulatory framework should establish requirements for:
Pipeline materials
Hydrogen can interact differently with pipeline materials than conventional natural gas. Regulations may therefore need to address:
hydrogen compatibility;
hydrogen embrittlement;
fracture control;
weld integrity;
material qualification.
Pressure management
Rules should govern:
maximum operating pressure;
pressure testing;
compressor stations;
pressure relief;
emergency isolation.
Leak detection
Hydrogen's physical properties require effective:
monitoring;
sensors;
inspection;
leak detection;
emergency shutdown systems.
Emergency response
Operators should be required to maintain:
emergency plans;
communication systems;
fire response arrangements;
isolation procedures;
incident reporting.
The EU framework expressly places responsibility on hydrogen network operators to operate, maintain and develop secure and reliable hydrogen transport infrastructure. (EUR-Lex)
7. Third-Party Access
Third-party access is one of the most important economic-regulatory issues.
Suppose Company A owns a hydrogen pipeline connecting a hydrogen production cluster with an industrial zone. If Company A refuses access to Company B, Company B may be unable to sell hydrogen to customers connected to the network.
A regulatory system can therefore require the pipeline owner to provide access to other users.
The EU's Directive 2024/1788 provides for regulated third-party access to hydrogen networks based on:
published tariffs;
objective criteria;
non-discrimination;
regulatory approval of tariffs or tariff methodologies. (EUR-Lex)
Interestingly, Member States can temporarily use negotiated third-party access until 31 December 2032, subject to specified conditions. (EUR-Lex)
This reflects the fact that hydrogen markets are still developing and regulators are attempting to balance competition with infrastructure investment.
8. Indian Common-Carrier Principles and Hydrogen Pipelines
India's existing natural-gas pipeline framework provides a useful legal analogy.
Under the Petroleum and Natural Gas Regulatory Board Act, 2006, the PNGRB has powers concerning common-carrier and contract-carrier pipelines and access to relevant infrastructure.
Indian case law has emphasised that third-party access can depend upon the statutory process through which a pipeline is declared a common carrier or contract carrier.
In Gujarat Gas Ltd. v. Saint Gobain India Pvt. Ltd. (2022), the Appellate Tribunal for Electricity considered whether a pipeline was required to provide third-party access after expiry of an exclusivity period. The Tribunal emphasised the statutory procedure under Section 20 of the PNGRB Act for declaring infrastructure a common or contract carrier. (Indian Kanoon)
This principle is particularly relevant for future hydrogen legislation.
A hydrogen pipeline law should clearly answer:
Does expiry of an exclusivity period automatically create third-party access rights, or must the regulator formally designate the pipeline as a common carrier?
The Indian jurisprudence suggests that statutory designation and procedural safeguards can be critical.
9. GAIL Case and Non-Discriminatory Pipeline Access
Another significant Indian case is GAIL (India) Ltd. v. Petroleum and Natural Gas Regulatory Board, decided by the Supreme Court of India in 2016.
The case concerned access to common-carrier pipeline capacity and whether denial of access on a reasonable-efforts basis could amount to discriminatory or restrictive conduct. (Indian Kanoon)
Although this case concerned natural-gas infrastructure rather than hydrogen, its regulatory principle is highly relevant:
where infrastructure is legally subject to common-carrier obligations, access arrangements cannot simply be structured to arbitrarily exclude competing users.
A future hydrogen pipeline regime could incorporate:
capacity-allocation rules;
priority rules;
congestion-management rules;
transparent booking;
dispute-resolution mechanisms.
10. Tariff Regulation
Pipeline regulation also requires a system for determining transportation charges.
Possible models include:
Cost-of-service regulation
The regulator determines tariffs based upon:
capital expenditure;
operating expenditure;
depreciation;
reasonable return.
Revenue-cap regulation
The regulator establishes the maximum revenue the operator may recover.
Negotiated tariffs
The pipeline operator and user negotiate transportation charges.
Regulated third-party access
The regulator approves tariffs or tariff methodologies.
The EU framework expressly requires regulatory authorities to approve methodologies for connection and access to hydrogen networks and hydrogen network tariffs where applicable. (EUR-Lex)
11. Ownership and Unbundling
Another major issue concerns whether a hydrogen producer should be allowed to own the transport pipeline.
Without appropriate structural safeguards, one company could:
produce hydrogen → own the pipeline → control access → sell hydrogen to consumers.
This could create a vertical-integration problem.
The EU framework therefore develops rules concerning separation and unbundling of hydrogen-network activities. At the same time, it recognises that emerging hydrogen markets may require transitional flexibility, particularly for geographically confined industrial networks. (EUR-Lex)
This illustrates an important regulatory principle:
hydrogen regulation may need stricter competition safeguards in mature markets but greater flexibility during the early development phase.
12. Repurposing Natural-Gas Pipelines
One of the most significant legal questions is whether existing natural-gas pipelines can be converted to hydrogen service.
Repurposing can reduce:
construction costs;
land acquisition;
environmental disturbance;
project development time.
However, regulators must establish whether a particular pipeline is technically suitable.
Issues include:
material compatibility;
pressure;
weld integrity;
hydrogen embrittlement;
compressor compatibility;
valves;
metering;
leak detection;
remaining asset life.
EU law expressly recognises hydrogen infrastructure involving repurposed natural-gas infrastructure. (EUR-Lex)
The regulatory authority therefore needs a process for determining when repurposing is legally and technically permissible.
13. Network Development Planning
Hydrogen pipeline systems should not develop through isolated projects without coordination.
The EU framework requires hydrogen transmission network operators to prepare ten-year network development plans, based on forecast supply and demand and stakeholder consultation. (EUR-Lex)
A similar planning mechanism could address:
hydrogen production zones;
industrial demand;
ports;
storage;
export terminals;
electricity-system integration;
cross-border connections;
repurposed pipelines.
This helps avoid both underinvestment and overbuilding.
14. Cross-Border Hydrogen Pipelines
International hydrogen pipelines introduce additional legal issues.
These include:
border-crossing permissions;
customs treatment;
hydrogen-quality standards;
capacity allocation;
tariffs;
regulatory cooperation;
certification;
dispute resolution.
The EU framework specifically addresses hydrogen interconnectors with third countries and recognises the need for international or intergovernmental arrangements governing such infrastructure. (EUR-Lex)
Cross-border regulation will become particularly important for hydrogen corridors connecting:
North Africa and Europe;
Middle Eastern producers and Europe;
Scandinavian producers and continental Europe;
South Asian production zones and industrial consumers.
15. Hydrogen Quality and Interoperability
A pipeline system cannot function efficiently if different users inject hydrogen with substantially different quality characteristics.
Regulation therefore needs standards for:
purity;
moisture;
contaminants;
pressure;
metering;
injection conditions.
The EU framework specifically assigns regulatory authorities responsibilities concerning hydrogen quality and hydrogen-quality management. (EUR-Lex)
Interoperability rules are particularly important when multiple hydrogen networks become interconnected.
16. Liability and Insurance
Hydrogen pipeline regulation should establish responsibility for:
leaks;
explosions;
property damage;
environmental damage;
personal injury;
business interruption;
contamination;
infrastructure failure.
The operator may be required to maintain:
public-liability insurance;
environmental liability insurance;
financial guarantees;
emergency funds.
A robust framework should also clarify liability among:
producer → pipeline operator → storage operator → distributor → consumer.
17. Regulatory Oversight
An independent regulator should ideally have authority to:
issue licences;
approve tariffs;
monitor access;
investigate complaints;
inspect infrastructure;
impose penalties;
order corrective action;
resolve disputes;
approve network plans.
The EU framework assigns substantial responsibilities to national regulatory authorities, including approval of hydrogen-network access terms and tariffs and the ability to require operators to modify discriminatory or disproportionate conditions. (EUR-Lex)
18. UK Energy Act 2023 as a Regulatory Model
The UK's Energy Act 2023 provides a particularly useful example of hydrogen-specific pipeline regulation.
Part 3 establishes a framework for licensing hydrogen pipeline projects. It covers projects involving the construction, alteration or operation of pipelines for hydrogen transportation. (Legislation.gov.uk)
The legislation also permits conditions to be included in gas transporter licences concerning the conveyance of hydrogen. These provisions can facilitate information sharing and regulatory arrangements between existing licence holders and potential entrants. (Legislation.gov.uk)
The UK model therefore illustrates how hydrogen infrastructure can be incorporated into an existing gas regulatory architecture while creating hydrogen-specific legal mechanisms.
19. Important Case Laws
Because dedicated hydrogen pipeline litigation is still relatively limited, courts have principally developed relevant principles through natural-gas and pipeline cases.
1. GAIL (India) Ltd. v. PNGRB, Supreme Court of India, 2016
The Supreme Court considered issues concerning access to common-carrier pipeline capacity and discrimination in access arrangements. The case is useful for understanding the legal importance of non-discriminatory access to regulated pipeline infrastructure. (Indian Kanoon)
Relevance to hydrogen: Future hydrogen common-carrier pipelines may require similar access protections.
2. Gujarat Gas Ltd. v. Saint Gobain India Pvt. Ltd., APTEL, 2022
The Tribunal considered whether expiry of exclusivity automatically required third-party access and examined the statutory procedure for common/contract-carrier designation. (Indian Kanoon)
Relevance to hydrogen: A hydrogen statute should expressly define when third-party access obligations arise.
3. Adani Gas Ltd. v. Union of India, Delhi High Court, 2021
The case considered the statutory and regulatory structure governing petroleum and natural-gas pipelines, including government authority over pipeline development and regulation. (Indian Kanoon)
Relevance to hydrogen: It demonstrates the importance of clearly allocating regulatory authority between central government and specialised regulators.
4. Poland v. European Commission, T-883/16, General Court of the European Union, 2019
The case concerned the OPAL natural-gas pipeline and the legality of an exemption from ordinary third-party-access and tariff rules. The General Court held that the Commission had to take the EU principle of energy solidarity into account when considering the exemption. (Infocuria)
Relevance to hydrogen: It illustrates that infrastructure exemptions cannot necessarily be viewed solely through the commercial interests of the pipeline owner; broader energy-system considerations may be legally relevant.
5. Nord Stream 2 AG v. European Parliament and Council, T-526/19
The litigation concerned the application of EU third-party-access and regulatory requirements to gas pipelines connecting EU Member States with third countries. The Court addressed the application of EU pipeline regulation and proportionality considerations. (curia)
Relevance to hydrogen: Future cross-border hydrogen pipelines may similarly raise questions concerning jurisdiction, third-party access and regulatory exemptions.
20. Regulatory Challenges in India
India does not yet have a fully developed hydrogen-pipeline regulatory architecture comparable to the EU's dedicated hydrogen-market framework.
The existing PNGRB framework was developed primarily around petroleum, petroleum products and natural gas. Consequently, several questions would need explicit treatment for hydrogen:
Should hydrogen pipelines fall directly under PNGRB jurisdiction?
Should dedicated hydrogen pipelines be treated as common carriers?
What constitutes a "hydrogen pipeline" for regulatory purposes?
Should captive hydrogen pipelines require authorisation?
How should tariffs be determined?
What safety standards should apply?
How should natural-gas pipelines be repurposed?
How should hydrogen blending be regulated?
Who should regulate cross-border hydrogen pipelines?
How should third-party access be implemented?
Indian pipeline jurisprudence already demonstrates the importance of precise statutory authority and regulatory procedure. For example, Indian decisions concerning PNGRB-regulated pipelines have distinguished between captive infrastructure and common/contract-carrier infrastructure. (Indian Kanoon)
21. Suggested Indian Hydrogen Pipeline Regulatory Architecture
A future Indian framework could contain the following structure:
| Regulatory Area | Proposed Legal Mechanism |
|---|---|
| Licensing | Hydrogen pipeline authorisation |
| Route | Central/state route approval |
| Land | Easement and right-of-user provisions |
| Safety | Hydrogen-specific pipeline safety code |
| Technical standards | BIS/recognised international standards |
| Third-party access | Common/contract carrier framework |
| Tariffs | Regulated or approved methodology |
| Competition | Non-discrimination and access rules |
| Repurposing | Technical conversion certification |
| Environment | Environmental and forest/water approvals |
| Network planning | National hydrogen pipeline plan |
| Cross-border pipelines | International/intergovernmental framework |
| Liability | Operator liability and insurance |
| Enforcement | Inspection, penalties and licence suspension |
| Dispute resolution | Regulatory adjudication and appellate mechanism |
22. Key Legal Principles
The emerging law of hydrogen transport pipelines can therefore be understood through several core principles:
Principle 1 — Safety first
Pipeline authorisation should depend upon demonstrated technical and operational safety.
Principle 2 — Regulated access
Where pipelines constitute essential infrastructure, third-party access may be necessary to prevent infrastructure monopolisation.
Principle 3 — Non-discrimination
Comparable users should generally receive access under objectively determined conditions.
Principle 4 — Regulatory transparency
Licensing, tariffs and network-development decisions should follow transparent procedures.
Principle 5 — Proportionality
Regulation should protect safety and competition without imposing unnecessary barriers on emerging hydrogen infrastructure.
Principle 6 — Transitional regulation
Early-stage hydrogen markets may justify temporary exemptions or negotiated access arrangements.
Principle 7 — Repurposing with technical verification
Natural-gas infrastructure should not automatically be treated as hydrogen-compatible; conversion should require engineering assessment and regulatory approval.
Principle 8 — Integrated planning
Hydrogen pipelines should be planned together with production, storage, ports, industrial demand and electricity infrastructure.
23. Conclusion
The hydrogen transport pipeline regulatory framework represents an emerging branch of energy infrastructure law. Its principal purpose is to create a legal system under which hydrogen can be transported safely, efficiently and competitively while encouraging investment in infrastructure.
The EU's Directive 2024/1788 is particularly significant because it establishes a dedicated legal framework for hydrogen networks, including definitions of hydrogen transmission and distribution networks, third-party access, tariffs, network development planning and regulatory supervision. (EUR-Lex)
The UK's Energy Act 2023 demonstrates another approach by creating a specific licensing framework for hydrogen pipeline projects. (Legislation.gov.uk)
For India, existing PNGRB jurisprudence concerning GAIL, Gujarat Gas, and other pipeline disputes provides useful principles concerning common-carrier access, regulatory authority and procedural safeguards, but a dedicated hydrogen regime would provide greater legal certainty. (Indian Kanoon)
Ultimately, an effective hydrogen pipeline law must balance safety, investment, competition, environmental protection, third-party access, infrastructure planning and energy security. The most important legal challenge will be designing a regulatory framework that is sufficiently strict to protect the public while sufficiently flexible to permit a new hydrogen infrastructure market to develop.

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