Indian Energy Exchange (IEX), the country's largest electricity exchange, has announced further divestment of 5 per cent equity stake in its natural gas focused venture Indian Gas Exchange (IGX) to GAIL (India) Limited.
With this, GAIL becomes the third strategic investor to onboard IGX. Adani Total Gas & Torrent Gas had last month acquired 5 per cent stake each in the country's first authorized and regulated Gas Exchange.
The partnership between IGX and GAIL is a significant development which will help add value in development of the gas markets in the country, IEX said in a statement.
"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,” S N Goel, Chairman, IEX and Director-IGX, said.
He added that gas markets in India are on the cusp of major growth with strong impetus from the government to create a conducive policy and regulatory framework.
Launched in June last year as a gas trading platform, IGX has become the first gas exchange to receive authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) under the recently notified Gas Exchange Regulations 2020.
The platform has 15 members and over 500 registered clients and offers an alternative to the gas spot market in India by providing ease of trading, payment security and greater access to the market. It currently operates from three physical hubs – Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
