The National Commodity and Derivatives Exchange Limited (NCDEX) and Gail Ltd signed a memorandum of understanding (MoU) today to enable both organisations to jointly work towards development of a spot market for natural gas in the country. | |
| Under the MoU, NCDEX would make available an on-line trading platform to Gail clients to trade in spot natural gas contracts. |
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| The two also agreed to jointly educate stakeholders about the natural gas trading platform. |
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| The pact was signed by the director (marketing) of GAIL, U D Choubey, and the chief executive officer and managing director of NCDEX, P H Ravikumar. |
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| A core team will be formed to design the contracts, risk management processes and the clearing and settlement mechanism. |
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| The team will collaborate with users to promote natural gas trading. |
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| The managing director and CEO of NCDEX, Ravikumar, said, "This tie-up with GAIL is very significant for NCDEX as it marks a major step in the energy sector." |
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| GAIL has contributed immensely to the nation's gas-based economy with a countrywide presence of pipelines, plants and marketing network." |
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| He added the collaboration would leverage the synergies between the two organisations. |
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| Trading is expected to begin within a month of completion of all the groundwork. |
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