IGX Secures 25 Yrs Authorization from Petroleum and Natural Gas Regulatory Board

The Indian Gas Exchange (IGX) has secured necessary authorization to operate as a Gas Exchange as per the provisions of the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020 for 25 years.

December 03, 2020. By Manu Tayal

Sharing his views on the occasion, DK Sarraf, Chairperson Petroleum and Natural Gas Regulatory Board (PNGRB) said that, “PNGRB is pleased to grant the necessary authorization to the Indian Gas Exchange Ltd basis its application dated 7th October 2020. 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 utilization of pipelines as well as boost consumer confidence and in turn increasing gas demand in the country. We wish IGX team the very best in this endeavor and hope it makes a meaningful contribution to India’s target of increasing the share of gas in the 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. As a regulated entity, IGX is poised to further establish and reinforce greater trust and credibility among the market participants. IGX also envisions to create Indian gas benchmark as IEX has done for electricity,” said S N Goel, Chairman Indian Energy Exchange and Director, IGX.

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 CERC since the year 2008.

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.

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