Public sector oil major Indian Oil Corporation (IOC) has acquired a 4.93% stake in Indian Gas Exchange (IGX) from Indian Energy Exchange (IEX) for an undisclosed amount.
IGX, India’s only gas trading exchange, is jointly promoted by IEX and National Stock Exchange (NSE). Other strategic investors in IGX include GAIL (India) Ltd, ONGC Ltd, Torrent Gas Pvt Ltd and Adani Total Gas Ltd.
IOC finds complete synergy in the gas sector through the acquisition of an interest in IGX. The acquisition of IGX’s stake will mark IOC’s presence throughout the gas marketing value chain; from LNG (liquefied natural gas) terminals, the pipeline network and gas retail through town gas distribution to trading.
“We are committed to the vision of having our presence in a complete gas marketing value chain; from LNG terminals, the pipeline network and retail gas through the city’s gas distribution network. Our successful bids in the town gas distribution tender are also in line with our strategy to become a dominant player in the Indian gas market. And given the synergy, our partnership with IGX is a step towards achieving our mission to ensure gas availability across the country at competitive prices,” said IOC President Shrikant Madhav Vaidya, in a press release.
Vaidya further added that IOC recognizes the important role that IGX has to play in building a gas-based economy and creating a vibrant gas market in the country. “The partnership would benefit the entire gas sector as we work to make India a gas hub,” Vaidya said.
IGX has built an ecosystem with over 500 registered customers and 21 members. The exchange has recorded 6.5 million MMBtu equivalent to approximately 145 MMSCM of gas trading volume so far this fiscal year.
“We are delighted to welcome IOC as a strategic partner of IGX. IOC has a diverse and significant presence in the oil, gas and petrochemical segments, which bodes well in our joint effort to build the gas market in India, in line with the government’s vision to accelerate the share gas in the energy mix to 15% by 2030,” said SN Goel, President and CEO, IEX and Director, IGX.
Goel added, “We are confident that IOC will bring tremendous value through their guidance and support of our new IGX initiative. IOC, with its immense expertise in the gas sector, will help add new products for the Indian markets. »
IGX offers six delivery-based contracts for gas trading, including day-ahead, daily, weekdays, weekly, fortnightly and monthly through five designated physical hubs including Dahej, Hazira, Dabhol, Jaigarh and KG Basin .
DILIP KUMAR JAI