The Indian Energy Exchange (IEX) has divested 26 per cent of its equity holding in the Indian Gas Exchange (IGX) to National Stock Exchange of India (NSE). The transaction was through NSE’s wholly owned subsidiary NSE Investments. According to officials, NSE became a co-promoter and the second largest shareholder on the IGX gas-trading platform with the stake buy. IEX, an electricity trading platform, said that it separately shed a 5 per cent equity holding to Oil and Natural Gas Corporation (ONGC). IEX, which set up the IGX natural gas trading hub, had earlier sold 5 per cent stake each to GAIL (India), Adani Total Gas, and Torrent Gas. After the latest sale, IEX now has 54 per cent share holding remaining in IGX. This makes NSE and IEX the two promoters and the rest equity shareholders in the platform.
IGX hopes to trade 5% domestic gas
February 14, 2021
Currently, only imported gas is allowed to be sold in the market
Indian Gas Exchange (IGX) has reached out to the Ministry of Petroleum and Natural Gas and the Directorate General of Hydrocarbons, asking the government to allow domestic natural gas producers to also sell on the exchange’s platform.
“We hope that at least 5 per cent of the domestically-produced gas will be allowed on the exchange,” Rajesh Kumar Mediratta, Director, IGX, told
BusinessLine. “Then there would be a good volume of gas coming to the exchange.”
A majority-owned subsidiary of Indian Energy Exchange (IEX), IGX is the country’s first trading platform for natural gas. Currently, only imported gas is allowed to be sold in the market. Citing the example of ONGC, which has also announced a purchase of 5 per cent stake in IGX, Mediratta said the public sector producer ends up losing money in gas production due to regulated pricing based on fore
Interview | IEX may bring down equity in Indian Gas Exchange to 25% in five years: Rajesh Kumar Mediratta, Director of IGX
Indian Gas Exchange (IGX) Director Rajesh Kumar Mediratta said that the company is in talks with multiple players to be roped in as strategic partners.
Image: Rajesh Kumar Mediratta, Director of IGX
India is targeting rapid growth in natural gas’ share in the country’s energy basket from 6 percent now to 15 percent by 2030. In this pursuit of becoming a gas-based economy, many believe that there is a need for a transparent and market-driven pricing mechanism and India’s first gas exchange the Indian Gas Exchange (IGX) is considered as a step towards achieving this goal.
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