IGX receives regulator's approval for LNG capacity booking platform

The platform will allow LNG terminal operators to list unused regasification capacity and enable buyers to book available slots, improving transparency and infrastructure utilisation

Indian Gas Exchange (IGX) received approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) to introduce a regasification capacity booking platform on the exchange. The move is expected to provide a centralised and organised mechanism for the listing and booking of unutilised regasification capacity at liquefied natural gas (LNG) terminals.

 

The proposed platform would enable market participants to identify available capacity and access it in accordance with their requirements, said PNGRB in a press note. “This facility is expected to enhance the growth of gas markets and derive support from the earlier decision of the Board to reduce the pipeline tariff zones to two, thereby making even distant LNG terminals competitive for consumers,” the regulator added.

  

The gas regulator emphasised that a large number of terminals were reporting poor capacity utilisation and that the proposed platform by IGX would help attract LNG cargoes by transparently discovering lower regasification charges.

 

Under the proposed arrangement, LNG terminal operators and capacity holders may list their unutilised regasification capacity on the platform, while prospective users may book available capacity based on their requirements. Buyers would also have the option to indicate their capacity requirements, thereby improving the visibility of available capacity and market demand.

 

IGX will act as a facilitator for capacity booking, while contractual negotiations, payment settlements and risk management will continue to be undertaken directly between the concerned buyers and sellers, in accordance with their respective agreements. Participation on the platform will be entirely voluntary.

 

“The initiative is expected to facilitate more efficient utilisation of existing LNG regasification infrastructure by providing market participants with an additional transparent and structured avenue for accessing available capacity, while preserving the bilateral nature of commercial arrangements,” said PNGRB.

 

IGX is India’s first and only authorised physical delivery-based gas trading exchange, providing a marketplace for trading natural gas.