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The country’s first automated delivery-based gas trading platform, India Gas Exchange (IGX) has announced securing the necessary authorisation to operate as a gas exchange as per the provisions of the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020, for a period of 25 years.
The GER 2020 Regulations were notified by PNGRB on September 28. IGX had submitted its application for authorisation on October 8 in accordance with the prescription under the GER 2020 regulations of the regulatory body.
Sharing his views on the occasion, DK Sarraf, Chairperson, PNGRB, said, “With this development, IGX has become 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 utilisation of pipelines as well as boost consumer confidence and, in turn, increasing gas demand in the country.”
India has set a target of increasing the share of gas in its overall energy mix from 6 per cent to 15 per cent by 2030.
SN Goel, Chairman, Indian Energy Exchange & Director, IGX said, “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. As a regulated entity, IGX is poised to further establish and reinforce greater trust and credibility among the market participants.”
IGX is incorporated as a wholly owned subsidiary of the IEX – India’s premier nationwide, automated electricity trading platform powered by the state-of-the-art technology operating under the regulatory supervision of the Central Electricity Regulatory Commission (CERC) since the year 2008. IEX has a robust ecosystem of over 6,500 market participants, which includes all the distribution utilities in the country as well as the major power generators. IEX offers trade in electricity through its various market segment such as real-time, day-ahead as well as term ahead markets.
Recently, the electricity exchange also commenced trading in renewable energy at its platform. The electricity price discovered by IEX serve as most competitive benchmark for the power value chain and the distribution utilities as well as open access consumers have been leveraging the exchange to optimise their power procurement portfolio. The Exchange is listed on both NSE and BSE since October 2017.
The Indian Gas Exchange (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 Exchange 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 15 June 2020, the platform has cumulatively traded 74,600 MMBTU. Through its robust value proposition such as transparency, flexibility, settlement, delivery facilitation and competitive price discovery, it aims to set competitive price benchmarks in the Indian gas market.