India launched the country’s first across-the-board online delivery-based gas trading platform, the Indian Gas Exchange (IGX) in a move aimed at bringing more price transparency to the market and help boost consumption of the clean fuel.
The trading exchange for physical delivery of gas was launched by IGX, a wholly owned subsidiary of Indian Energy Exchange (IEX).
The IGX is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for ...
It will enable foreign companies, including gas exporters in the Gulf, to sell directly to domestic customers here. Indian gas companies will also be allowed to do so.
Launching the IGX, Minister of Petroleum and Natural Gas & Steel Dharmendra Pradhan, said it is incorporated as a wholly-owned subsidiary of the IEX - India’s energy market platform. It will enable market participants to trade in standardised gas contracts.
The platform is fully automated with a web-based interface to provide a seamless trading experience to the customers. During the virtual launch ceremony, Pradhan said that the launch of the new electronic trading platform for natural gas today will help the nation move towards "free-market pricing of natural gas".
IGX will play a bigger role towards realizing a free market for gas, he added, as there will be a market-driven pricing mechanism.
Pradhan also said that Petroleum and Natural Gas Regulatory Board (PNGRB) is working on rationalization of tariff to make natural gas affordable in every part of the country.
The IGX is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas across three hubs - Dahej and Hazira in Gujarat, and Kakinada in Andhra Pradesh, said senior officials.
Imported LNG will be regassified and sold to buyers through the exchange, removing the requirement for buyers and sellers to find each other, stated Rajesh Kumar Mediratta, director of IGX.
“This will mean that buyers do not have to contact multiple dealers to ensure they find a fair price,” he added.
India plans to increase by two and a half times the share of gas in its energy consumption pattern in 10 years. Currently, India’s daily consumption of gas is estimated to be approximately 165 million cu m.
Nearly half of this comes from imported liquefied natural gas, LNG, which makes the role of LNG-exporting countries and companies critical to the newly launched IGX.
Pradhan pointed out that the launch of IGX had opened a new chapter in the energy history of India to help the country move towards free market pricing of natural gas.
"Soon we will unveil a new gas tariff policy, nearly double India’s gas pipeline infrastructure and increase the annual LNG import capacity by 26 per cent," he added.
The trading exchange for physical delivery of gas was launched by IGX, a wholly owned subsidiary of Indian Energy Exchange (IEX).
The IGX is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for ...
It will enable foreign companies, including gas exporters in the Gulf, to sell directly to domestic customers here. Indian gas companies will also be allowed to do so.
Launching the IGX, Minister of Petroleum and Natural Gas & Steel Dharmendra Pradhan, said it is incorporated as a wholly-owned subsidiary of the IEX - India’s energy market platform. It will enable market participants to trade in standardised gas contracts.
The platform is fully automated with a web-based interface to provide a seamless trading experience to the customers. During the virtual launch ceremony, Pradhan said that the launch of the new electronic trading platform for natural gas today will help the nation move towards "free-market pricing of natural gas".
IGX will play a bigger role towards realizing a free market for gas, he added, as there will be a market-driven pricing mechanism.
Pradhan also said that Petroleum and Natural Gas Regulatory Board (PNGRB) is working on rationalization of tariff to make natural gas affordable in every part of the country.
The IGX is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas across three hubs - Dahej and Hazira in Gujarat, and Kakinada in Andhra Pradesh, said senior officials.
Imported LNG will be regassified and sold to buyers through the exchange, removing the requirement for buyers and sellers to find each other, stated Rajesh Kumar Mediratta, director of IGX.
“This will mean that buyers do not have to contact multiple dealers to ensure they find a fair price,” he added.
India plans to increase by two and a half times the share of gas in its energy consumption pattern in 10 years. Currently, India’s daily consumption of gas is estimated to be approximately 165 million cu m.
Nearly half of this comes from imported liquefied natural gas, LNG, which makes the role of LNG-exporting countries and companies critical to the newly launched IGX.
Pradhan pointed out that the launch of IGX had opened a new chapter in the energy history of India to help the country move towards free market pricing of natural gas.
"Soon we will unveil a new gas tariff policy, nearly double India’s gas pipeline infrastructure and increase the annual LNG import capacity by 26 per cent," he added.
Source Link: www.tradearabia.com
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