The Indian Energy Exchange (IEX) has announced strategic divestment of 26 percent of its equity holding in Indian Gas Exchange (IGX) to National Stock Exchange (NSE) and an additional 5 percent equity holding to state-run Oil and Natural Gas Corporation (ONGC).
The representatives of IEX, NSE and ONGC signed agreements to this effect in the presence of Tarun Kapoor, Secretary of the Ministry of Petroleum and Natural Gas. IGX is India’s first gas exchange after it secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) on December 2, 2020.
NSE has done the deal through its wholly-owned subsidiary NSE Investments . The Indian Gas Exchange is a subsidiary of the IEX - India’s premier nationwide, automated electricity trading platform powered by intuitive and state-of-the-art technology.
Speaking on the development, Shri Tarun Kapoor, Secretary, MOPNG said, “We are working collaboratively with key stakeholders in the value chain to create an enabling policy framework that supports the development of gas markets in the country. The Indian Gas Exchange, working in collaboration with strong leaders from both the public as well as the private sector, has a pioneering role in developing a vibrant gas market in the country.”
S N Goel, Chairman and Managing Director, IEX and Director, IGX said, “Both NSE and ONGC bring their unique value proposition and leadership edge in markets and hydrocarbon sector respectively to the table. We look forward to working jointly with our new partners in developing gas markets which offer an immense scope of growth."
Earlier this year, IEX announced the strategic investments of 5 percent each by leading players in the gas value chain – Adani Total Gas, Torrent Gas and GAIL (India) Ltd in IGX. Vikram Limaye, managing director and chief executive officer, NSE, said, “The Government of India has an unwavering commitment to increase the consumption of gas and build India as a gas-based economy. The collaboration between NSE, IEX and other strong public and private sector leaders to strengthen IGX will go a long way in accelerating the development of the gas markets."The Indian Gas Exchange currently offers trade in five contracts, including daily, weekly, weekday, fortnightly and monthly, at three physical hubs - Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. "The Exchange has built a very robust ecosystem with over 500 registered clients and 15 members and has cumulatively traded 100,000 million metric British thermal unit (MMBTU) volume of gas already.