GAIL (India) Limited has acquired 5 per cent stake in the Indian Gas Exchange (IGX). The Maharatna Public Sector Undertaking has bought this stake from the Indian Energy Exchange (IEX).
Launched on June 15, 2020 as a gas trading platform, IGX has since become the first gas exchange to receive authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) under the recently notified Gas Exchange Regulations 2020.
IGX was founded as a wholly-owned subsidiary of the Indian Energy Exchange (IEX). On January 22, IEX had announced strategic investments by Adani Total Gas and Torrent Gas in IGX that acquired 5 per cent stake each. Both had acquired this stake for Rs 3.69 crore each. With the stake sale to GAIL, IGX now had three strategic partners.
According to IGX, the exchange has 15 members and more than 500 registered clients. It offers an alternative to the gas spot market in India by providing trade, payment security and greater access to the market. IGX currently operates from three physical hubs–Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
Speaking on the development, S N Goel, Chairman, IEX and Director - IGX said, “Competitive domestic gas markets are crucial to build a gas-based economy. In line, IGX is pro-actively working in collaboration with the stakeholders to build the gas markets ecosystem in the country.”
Santanu Roy, Executive Director (Business Development & Corporate Affairs), GAIL said, “The partnership between GAIL and IGX will pave way for further development of the gas market, more trading through gas exchange and increase in capacity utilisation of pipelines.”