New Delhi, June 15: After a long wait, trading of gas will finally start in the country with energy market platform India Energy Exchange launching the Indian Gas Exchange (IGX), the first nationwide online delivery-based gas trading platform.
Incorporated as a wholly-owned subsidiary of the IEX, the IGX will enable market participants to trade in standardised gas contracts. It will provide fully automated web-based interface to customers for a seamless trading experience.
The gas exchange was inaugurated by Petroleum Minister Dharmendra Pradhan, in an e-ceremony held on Monday, and trade on the platform commenced in his presence.
IANS had first reported in September last year that the proposed gas trading hub will come up in the country early next year (first quarter of FY21). Rating agency Crisil had been appointed to assist the regulator and the government in framing rules for the exchange.
Like other exchanges, IGX is expected to play a big role in competitive price discovery for the natural gas that will come from different parts of the globe and from within India. 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.
The Indian Gas Exchange will offer six market products beginning from day-ahead market and forward contracts including Daily, Weekly, Weekday, Fortnightly and Monthly at three physical hubs - Dahej, and Hazira in Gujarat and Odoru in Andhra Pradesh to begin with - while it is planned to add more hubs soon.