Indian Energy Exchange (IEX) on Wednesday announced divestment of 4.93 per cent of its equity stake in the Indian Gas Exchange (IGX) to oil major Indian Oil Corporation.
Energy exchange IEX and National Stock Exchange (NSE) are promoters of IGX, a gas exchange that has been set up to promote gas trading in the country. GAIL (India) Ltd, ONGC Ltd, Torrent Gas Pvt Ltd and Adani Total Gas Ltd are strategic investors in the natural gas trading platform.
"Indian Energy Exchange (IEX), India’s premier Energy Exchange and Indian Oil Corporation (IndianOil), India’s largest oil refining and fuel marketing firm, are pleased to announce IndianOil’s strategic equity stake of 4.93 per cent in Indian Gas Exchange Ltd," an IEX statement said.
IEX has divested a 4.93 per cent equity stake to IndianOil, it added.
S N Goel, Chairman and Managing Director, IEX and Director, IGX said, "We are delighted to welcome IndianOil as a strategic partner in IGX. IndianOil has diversified and a significant presence across the oil, gas, petrochemicals, and fertilizer segments which augurs well in our joint endeavour to build the gas market in India aligned to the government's vision of accelerating the share of gas in the energy mix to 15% by 2030."s
IndianOil with its huge expertise in the gas sector will help add new products for Indian markets, Goel added.
Shrikant Madhav Vaidya, Chairman, IndianOil said that Indian Gas Exchange has an important role to play in building a gas-based economy and also creating vibrant gas markets in the country.
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, Vaidya said.
"Our successful bids in the 11th Round of CGD bidding is also in line with our strategy to emerge as a dominant player in the 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," he said.
This partnership will benefit the entire gas sector as we work towards making India a gas hub, Vaidya said further.
Indian Oil Corporation Limited (IndianOil) is a diversified, integrated energy major with a presence in almost all the streams of oil, gas, petrochemicals and alternative energy sources with a net profit of Rs 21,836 crore for the financial year 2020-21.
IEX is India’s premier nationwide, automated electricity marketplace enabling flexible, and efficient power procurement for utilities and C&I consumers.
Indian Gas Exchange (IGX) presently offers six delivery-based contracts for trading in gas including Day Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly) through five designated physical hubs including Dahej, Hazira, Dabhol, Jaigarh and KG Basin.
The exchange cumulatively traded 6.5 million MMBtu equivalent to 145 MMSCM of gas in the current financial year.