New Delhi: State-run natural gas behemoth GAIL (India) Ltd became the third investor to join the Indian Gas Exchange (IGX) on Tuesday as it picked up 5 percent equity in the gas trading platform. In an official statement, IEX said, "The Indian Energy Exchange (IEX), India's premiere electricity exchange, has today announced further divestment of 5% equity stake in the Indian Gas Exchange (IGX) to GAIL (India) Limited, India's leading natural gas company and one of the Maharatna Public Sector Undertakings (PSUs)."
GAIL is India's largest gas pipeline, marketing, and processing company with diversified interests across the natural gas value chain of trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals, city gas, E&P etc. The company owns and operates a network of around 12,900 km of high-pressure trunk pipelines. "The partnership and collaboration between IGX and GAIL is a significant development which will go a long way and add robust value addition in development of the gas markets in the country," said IEX in the statement.
Commenting on the development, Santanu Roy, Executive Director (Business Development & Corporate Affairs), GAIL, said, "GAIL is committed towards development of gas-based economy in the country. The partnership between GAIL and IGX will benefit the gas sector as a whole and pave way for further development of gas market, more trading through gas exchange and increase in capacity utilisation of pipelines."
IEX Chairman and IGX Director SN Goel said, "With strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based economy. In line, IGX is pro-actively working in collaboration with stakeholders to build gas markets ecosystem in the country. We are delighted to welcome GAIL onboard as our partner and unite our strengths to realise India's vision of a gas-based economy."
Earlier on January 22, IEX had announced strategic investments by two leading energy players, Adani Total Gas and Torrent Gas, in IGX. They acquired 5 percent equity stake each in the platform. Launched on June 15, 2020, as a gas trading platform, IGX has since become the first gas exchange to receive authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020.
With 15 members and more than 500 registered clients, the IGX offers a compelling alternative to the gas spot market in India by providing ease of trading, payment security and greater access to the market. It currently operates from three physical hubs — Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
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