Adani Total Gas, Torrent Gas become first strategic investors in IGX
Jan 22, 2021
New Delhi [India], January 22 : Adani Total Gas and Torrent Gas -- with stakes in both upstream and downstream hydrocarbon value chain -- have acquired five per cent equity stake each in Indian Gas Exchange (IGX).
India's first authorised gas exchange envisions to play a key role in the development of gas market which is aligned with the government's vision to increase the share of gas in energy mix from 6 to 15 per cent by 2030, said Director Rajesh K Mediratta.
"In our journey to shape the nascent gas markets, we are delighted to partner with Adani Total Gas and Torrent Gas. We look forward to working in collaboration as IGX braces to play a pioneering role in developing India's gas markets," he said in a statement on Friday.
Suresh P Manglani, CEO of Adani Total Gas Ltd, said the company is committed to building gas infrastructure to increase the share of natural gas in India's energy mix.
The precedent of Indian Energy Exchange has remarkably transformed electricity trading. Likewise, the IGX is amply equipped to transform the gas sector in the coming years as it will enable efficient and competitive gas pricing and help in securing equitable distribution of natural gas in the country.
"IGX is one key step towards achieving the government's vision of a gas-based economy and will play a key role in discovering India's own price benchmarks," said Manglani.
Jinal Mehta, Director of Torrent Gas, said India is on the course to become a formidable energy and gas hub. IGX can play a catalytic role for India's gas market and will stimulate demand, increase availability and ensure competitive prices.
"Torrent's investment in IGX, which is India's first delivery-based gas exchange, is in line with our strategy to enhance our footprint in India's energy landscape," said Mehta.
IGX is also the first gas exchange in the country to have secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020.
The exchange now has 16 members and more than 500 registered clients. With three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh, IGX has already traded 75,000 metric million British thermal units (MMBTUs) since its launch in June 2020.
It also has plans to introduce two new hubs -- one at Dhabol in Maharashtra and other in West Bengal.
