IGX gets PNGRB nod to operate as Gas Exchange for 25 years
Dec 03, 2020
NEW DELHI: The Indian Energy Exchange on Thursday said its arm, Indian Gas Exchange (IGX), has secured authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB) to operate as a Gas Exchange.
IGX is India's first automated delivery-based gas trading platform.
IGX has secured the necessary authorization to operate as a Gas Exchange as per the provisions of the PNGRB (Gas Exchange) Regulations, 2020 for a period of 25 years, an Indian Energy Exchange (IEX) statement said.
According to the statement, the regulations were notified by the PNGRB on September 28, 2020.
IGX had submitted its application for authorization on October 8, 2020.
"With this development, IGX has become the first regulated gas exchange in the country. The Exchange will play an instrumental role in transparent discovery of gas prices, accelerate investments in the value chain, aid in capacity utilization of pipelines as well as boost consumer confidence and in turn increasing gas demand in the country," PNGRB Chairperson D K Sarraf said.
India is eying to increase the share of gas in its overall energy mix from 6 per cent to 15 per cent by 2030.
"This is a landmark development not just for IGX but for the overall gas sector and economy at large. The market mechanism will create competitive markets to benefit the end consumers with competitively priced gas and cost-effective price signals, will facilitate demand growth thereby leading to development and investments in upstream and downstream parts of the value chain," S N Goel, Chairman IEX and Director, IGX said in the statement.
Goel added that as a regulated entity, the IGX is poised to further establish and reinforce greater trust and credibility among market participants.
The IGX is incorporated as a wholly owned subsidiary of the IEX.
The IGX currently offers trade in five contracts namely: Daily, Weekly,Weekday, Fortnightly and Monthly at three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
The IGX has since received encouraging response from all stakeholders and will shortly commence trading with over 500 registered clients and 14 members.
Since its launch on June 15, 2020, the platform has cumulatively traded 74,600 MMBTU (Metric Million British Thermal Unit).