Indian Energy Exchange (IEX), on June 15, 2020, launched Indian Gas Exchange (IGX), the first nationwide online delivery-based gas trading platform.
IGX will offer six market products at three physical hubs, to begin with.
Dharmendra Pradhan, Union Minister of Petroleum & Natural Gas, inaugurated the Indian Gas Exchange in the e-ceremony and the trade on the platform commenced in his auspicious presence.(see picture alongisde)
The platform is fully automated with web-based interface to provide seamless trading experience to the customers and is powered by best-in-class technology from GMEX, one of the world’s leading digital exchange trading and post trade technology providers. Incorporated as a wholly owned subsidiary of IEX—India’s leading energy market platform— IGX will enable market participants to trade in standardised gas contracts.
IGX will play an instrumental role in transforming India’s gas markets, positioning India as a sustainable economy and enhancing industry’s competitiveness. The competitive price discovery will facilitate availability of gas at lower prices for cross-spectrum of industries across India, stimulate demand and facilitate greater investments in domestic gas exploration, an official release noted.
Gas currently accounts for 6 per cent of India’s energy basket and this is targeted to increase to 15 per cent by 2030.
Speaking on the occasion, Rajiv Srivastava, Managing Director & CEO, IEX and Director, IGX (in picture) noted, “It is a proud moment for us to launch Indian Gas Exchange. IEX, over the last 12 years has successfully furthered government’s agenda of 24×7 power for all through technology-led electricity markets. We now endeavour to build gas markets in the country to support the government’s vision to increase the share of gas from 6 per cent currently to 15 per cent by 2030 in India’s energy mix.”
Srivastava added, “IGX will drive industrial competitiveness, sustainability, spur investments in the gas value chain, deliver efficient utilisation of the pipeline infrastructure as well as ensure revival of gas-based power plants.”
Indian Gas Exchange will offer six market products beginning from day-ahead market and forward contracts including—daily, weekly, weekday, fortnightly and monthly—at three physical hubs in Dahej, Hazira in Gujarat and Odoru in Andhra Pradesh, to begin with. More hubs will be added in due course.
Through its membership drive launched in March this year, IGX already has 12 members and more than 350 registered clients from prominent industrial segments.
Featured photograph, for representation only, shows a liquefied natural gas (LNG) terminal of Petronet LNG Ltd
