The Indian Energy Exchange (IEX) said that state-owned GAIL (India) Ltd has acquired five per cent stake of the IEX in its arm Indian Gas Exchange (IGX). However, the company did not divulge the details about the value of the transaction. Last month, Adani Total Gas and Torrent Gas had acquired five per cent stake each in the IGX. GAIL is the third strategic investor in IGX.
“IEX, India’s premiere electricity exchange has further divested 5 per cent equity stake in the IGX to GAIL (India) Ltd, India’s leading natural gas company,” the IEX said in a statement. It added that the partnership between the IGX and GAIL is a significant development, which will go a long way and add robust value addition in development of the gas markets in the country.
S N Goel, chairman of IEX and director of IGX, said in the statement, “With strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based economy.”
IGX is pro-actively working in collaboration with the stakeholders to build gas markets ecosystem in the country, he added. “We are delighted to welcome GAIL onboard as our partner and unite our strengths to realize India’s vision of a gas-based economy,” Goel said.
On January 22, 2021, the IEX had announced strategic investments by two leading energy players, Adani Total Gas and Torrent Gas, in IGX. They acquired 5 per cent equity stake each in the platform.
Launched less than a year ago on 15 June, 2020, as a gas trading platform, the IGX has since become the first gas exchange to receive authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020.
With 15 members and over 500 registered clients, the Exchange offers a compelling alternative to the gas spot market in India by providing ease of trading, payment security and greater access to the market. It currently operates from three physical hubs Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.