Monday, October 3, 2022

ONGC picks up 5% stake in Indian Gas Exchange

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  • ONGC has signed a Share Purchase and Shareholders Agreement (SPSHA) with the Indian Gas Exchange and IEX on March 10 to acquire 5 percent equity in IGX

  • We believe that the gas markets are key to facilitating the efficient and competitive gas trade in India, said the ONGC CMD

New Delhi: State-run Oil and Natural Gas Corporation Limited (ONGC) has become the fourth investor to acquire stake in Indian Energy Exchange’s (IEX) Indian Gas Exchange (IGX), after GAIL (India) Ltd, Torrent Power and Adani Total. In an official statement released on Wednesday, ONGC said, “ONGC has signed a Share Purchase and Shareholders Agreement (SPSHA) with the Indian Gas Exchange (IGX) and the Indian Energy Exchange (IEX) on March 10 to acquire 5 percent equity in IGX. The SPSHA was signed in the presence of Secretary, Ministry of Petroleum & Natural Gas Tarun Kapoor and ONGC CMD Shashi Shanker, in Shastri Bhawan, New Delhi.”

ONGC aligned to govt’s vision of creating gas economy: CMD

Speaking on the occasion, the ONGC CMD said that ONGC is aligned to the government’s vision of increasing the share of gas in the energy mix to 15 percent by 2030. “We believe that the gas markets are key to facilitating the efficient and competitive gas trade in India. ONGC is pleased to be part of the Indian Gas Exchange and we look forward to develop the gas markets in the country through joint and synchronised efforts in the coming years,” said the CMD.

Indian Gas Exchange

Indian Gas Exchange Ltd (IGX) is India’s first automated national-level gas exchange to promote and sustain an efficient and robust gas market and to foster gas trading in the country. Indian Gas Exchange (IGX) would play an important role in facilitating the achievement of the government’s target of increasing the share of natural gas in India’s energy basket from the current 6.5 percent to 15 percent by 2030.

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IGX started operations on June 15, 2020 as a gas trading platform and has been operating as the Gas Exchange since December 2020. The Exchange operates under the regulatory framework of Petroleum and Natural Gas Regulatory Board (PNGRB). Apart from ONGC, GAIL, Torrent Gas Private Limited, Adani Total Gas Limited have already acquired 5 percent equity each.

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