IGX gets its first strategic investors as Adani Total Gas, Torrent Gas pick up 5% stake each

• Suresh P Manglani, CEO, Adani Total Gas, said, 'IGX will play a key-role in discovering India's own price benchmarks'

• Torrent's investment in IGX is in line with our strategy to enhance our footprint in India's energy landscape, said Director Jinal Mehta

New Delhi: Adani Total Gas Ltd and Torrent Gas Ltd have picked up five percent equity each in the Indian Gas Exchange (IGX), said the Indian Energy Exchange in an official statement on Friday. "The Indian Energy Exchange, India's premiere energy exchange, has today announced the first strategic divestment of shares in the Indian Gas Exchange (IGX), its wholly owned subsidiary and India's first authorised gas exchange. Adani Total Gas Ltd, and Torrent Gas Pvt. Ltd, India's two leading energy players with stakes in both upstream and downstream hydrocarbon value chain, have acquired 5 percent equity stake each in the IGX," said the statement.

'IGX envisions to play key role in the development of India's gas market'

Commenting on the development, Rajesh K Mediratta, Director, IGX said, "IGX envisions to play a key role in the development of India's gas market which is aligned with the government's vision to increase the share of gas in the energy mix from 6 percent to 15 percent by 2030. In our journey to shape the nascent gas markets in the country, we are delighted to partner with Adani Total Gas and Torrent Gas. We look forward to working in collaboration as IGX braces to play a pioneering role in developing India's gas markets."

Investors say IGX will play catalytic role in transforming India's gas sector

Suresh P Manglani, CEO, Adani Total Gas Ltd, said, "Adani Total Gas is committed to building gas infrastructure to increase share of natural gas in India's energy mix. The precedent of Indian Energy Exchange has remarkably transformed electricity trading in India. Likewise, the Indian Gas Exchange is amply equipped to transform the gas sector in the coming years as it will enable efficient and competitive gas pricing and help in securing equitable distribution of natural gas in the country. IGX is one key step towards achieving GOI's vision of a gas-based economy and will play a key-role in discovering India's own price benchmarks."

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Jinal Mehta, Director, Torrent Gas Pvt. Ltd. said, "India is on the course to become a formidable energy and gas hub. IGX can play a catalytic role for India's gas market and will stimulate demand, increase availability and ensure competitive prices. Torrent's investment in IGX, which is India's first delivery-based gas exchange, is in line with our strategy to enhance our footprint in India's energy landscape."

The backdrop

IGX is the first gas exchange in the country to have secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020. The Exchange now has 16 members and more than 500 registered clients. With three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh, IGX has already traded 75,000 MMBTU since its launch in June 2020. "It also has plans to introduce two new hubs — one in Dhabol, Maharashtra and other in West Bengal. This is subject to regulatory approvals," said the statement.

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