After Adani Total, Torrent Gas, Now GAIL Buys 5% Stake in Indian Gas Exchange

Soon after Adani Total Gas and Torrent Gas acquired 5 per cent stake each in IGX, Maharatna PSU GAIL (India) Ltd has acquired 5 per cent equity stake in the Indian Gas Exchange (IGX) from The Indian Energy Exchange (IEX).

Country’s leading natural gas company GAIL (India) Ltd owns and operates a network of around 12,900 km of high-pressure trunk pipelines.

On the partnership, IEX said it is a significant development which will go a long way and add robust value addition in development of the gas markets in the country.

Commenting on the development, S N Goel, Chairman, IEX and Director - IGX said that, “with strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based economy. In line, IGX is pro-actively working in collaboration with the stakeholders to build gas markets ecosystem in the country. We are delighted to welcome GAIL onboard as our partner and unite our strengths to realize India’s vision of a gas-based economy.”

“GAIL is committed towards development of gas-based economy in the country. The partnership between GAIL and IGX will benefit the gas sector as a whole and pave way for further development of gas market, more trading through gas exchange and increase in capacity utilization of pipelines,” said Santanu Roy, Executive Director (Business Development & Corporate Affairs), GAIL.

Recently, two leading energy players, Adani Total Gas and Torrent Gas had also acquired 5 per cent equity stake each in the platform.

Recently, Prime Minister Narendra Modi, during his Haldia visit, also stressed that gas-based economy is the need of the hour for India, and ‘One nation-One Gas Grid’ is an important step for meeting this need.

For this, focus is on reducing cost of natural gas and expanding gas-pipeline network, PM Modi said.

The Prime Minister further added that, our efforts have led to a situation where India is among the highest gas consuming nations.