India’s first gas trading platform launched

The move is expected to lead to market-driven pricing and boost consumption by improving availability.

June 15, 2020 05:58 pm | Updated 05:58 pm IST - MUMBAI

Indian Gas Exchange (IGX), first nationwide online delivery-based gas trading platform was launched by Dharmendra Pradhan, Minister of Petroleum and Natural Gas in an e-ceremony on Monday, a move that is expected to lead to market-driven pricing and boost consumption by improving availability.

The IGX platform incorporated by Indian Energy Exchange (IEX), India’s leading energy market platform commenced the trading on the platform on Monday.

“IGX is fully automated with web-based interface to provide seamless trading experience to the customers and is powered by best-in-class technology from GMEX, one of the world’s leading digital exchange trading and post trade technology providers,” said an IEX statement.

The IGX will offer six market products beginning from day-ahead market and forward contracts including - Daily, Weekly, Weekday, Fortnightly and Monthly at three physical hubs in Dahej, Hazira in Gujarat and Odoru in Andhra Pradesh to begin with while it is planned to add more hubs soon.

Incorporated as a wholly owned subsidiary of the IEX, IGX will enable market participants to trade in standardised gas contracts.

Mr. Rajiv Srivastava, Managing Director and CEO, IEX and Director, IGX said, “It is a proud moment for us to launch Indian Gas Exchange. IEX, over the last 12 years has successfully furthered government’s agenda of 24 x7 power for all through technology-led electricity markets. We now endeavour to build gas markets in the country to support the government’s vision to increase the share of gas from 6% currently to 15% by 2030 in India’s energy mix.”

IGX will play an instrumental role in transforming India’s gas markets, positioning India as a sustainable economy and enhancing industry’s competitiveness. The competitive price discovery will facilitate availability of gas at lower prices for cross-spectrum of industries across India, stimulate demand and facilitate greater investments in domestic gas exploration.

“IGX will drive industrial competitiveness, sustainability, spur investments in the gas value chain, deliver efficient utilisation of the pipeline infrastructure as well as ensure revival of gas-based power plants.”

Through its membership drive launched in March this year, IGX already has 12 members and more than 350 registered clients from prominent industrial segments.

Mr. Hirander Misra, Chairman of GMEX Technologies said, “We are delighted to be the strategic technology partner for IGX as cutting-edge technologically enabled energy marketplaces of the future.”

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.