The Indian Gas Exchange (IGX), India’s first automated delivery-based gas trading platform, has secured the necessary authorization to operate as a Gas Exchange as per the provisions of the Petroleum and Natural Gas Regulatory Board (PNGRB) (Gas Exchange) Regulations, 2020 for a period of 25 years. 

 

The GER 2020 Regulations were notified by PNGRB on September 28, 2020 and IGX had submitted its application for authorization on October 08, 2020 in accordance with the prescription under the GER 2020 regulations of PNGRB.

 

Sharing his views on the occasion, D. K. Sarraf, Chairperson, PNGRB said, “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. We wish the 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% to 15% by 2030."

 

S. N. Goel, Chairman, Indian Energy Exchange and Director, IGX said, “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 creating an Indian gas benchmark as IEX has done for electricity.”

 

IGX is incorporated as a wholly owned subsidiary of the IEX – India’s premier nationwide, automated electricity trading platform powered by technology operating under the regulatory supervision of the CERC since the year 2008. IEX has a robust ecosystem of 6,500+ market participants which includes all the distribution utilities in the country as well as the major power generators. 

 

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.