State-run Indian Oil Corporation Ltd (IOC) has acquired 4.93% stake in Indian Gas Exchange (IGX) from the latter’s promoter Indian Energy Exchange (IEX), the companies said in a joint statement on January 19.
The IEX and National Stock Exchange promoted gas exchange already has other strategic investors such as GAIL (India) Ltd, ONGC Ltd, Torrent Gas Pvt Ltd and Adani Total Gas Ltd.
“IndianOil is also committed to that vision and has a presence in the complete value chain of gas marketing; from LNG terminals, pipeline network and Gas retailing through the City Gas Distribution (CGD) network. Our successful bids in the 11th Round of CGD bidding is also in line with our strategy to emerge as a dominant player in Indian gas market. And given the synergy, our partnership with the Indian Gas Exchange is a step towards attaining our mission of ensuring the availability of gas across the nation at competitive prices,” said Shrikant Madhav Vaidya, chairman, Indian Oil.
“This partnership will benefit the entire gas sector as we work towards making India a gas hub,” Vaidya said.
The companies did not disclose the financial consideration for the transaction.
IGX offers six delivery-based contracts for trading in gas including day ahead, daily, weekday, weekly, fortnightly and monthly through five designated physical hubs located in Dahej, Hazira, Dabhol, Jaigarh and KG Basin. The exchange has over 500 registered clients and 21 members and cumulatively traded 6.5 Million British Thermal Unit (mbtu) of gas in the current financial year.
“We strongly believe that IndianOil will bring huge value through guidance and support to our new initiative of IGX. IndianOil with their huge expertise in gas sector will help add new products for Indian markets,” said S N Goel, chairman and managing director of IEX and director at IGX.
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