The Indian Gas Exchange (IGX), the one gasoline buying and selling platform within the nation, has acquired the much-awaited regulatory nod to commerce in home pure gasoline. The home gasoline buying and selling shall be launched on May 16, the corporate mentioned.
On August 19, 2021, the ministry of petroleum authorised home gasoline producers to promote as much as 500 million normal cubic metres or 10% of annual manufacturing from contract space, whichever is greater, per yr by means of gasoline exchanges.
With this approval, upstream gasoline manufacturing of selling and pricing freedom gasoline, comparable to from CBM,and home small fields, in addition to advertising freedom ceiling gasoline (troublesome fields) can now be successfully managed by means of versatile contracts at IGX.
Rajesh Ok Mediratta, managing director & CEO, IGX mentioned, “Now, end consumers will be able to buy HPHT gas at a current ceiling price of $9.92 per mmBtu through IGX. And, for other domestic gas, where there is no ceiling price, the buyers would receive gas at a much better price in spot market.”
Mediratta added: “In addition to above, exchange flexibility, ease-of-trade, payment security and transparency will further provide encouragement and incentives to offshore and on-shore gas producers especially discovered small fields, coal bed methane producers. This development will surely help IGX to further accelerate India’s journey towards a gas-based economy.”
The trade believes, gasoline producers may have instant gross sales alternative which can end in maximisation of home gasoline manufacturing and elevated liquidity on the platform.
“Small buyers who currently don’t have access to domestic gas either due to their size or allocation priority can now come to the exchange and procure domestic gas at competitive prices and ultimately build a gas ecosystem,” the corporate mentioned.
IGX is including regional hubs and every regional hub may have a number of supply factors to facilitate commerce of home gasoline on the trade as per amended Gas Exchange Regulations notified on May 6, it mentioned.
IGX lately prolonged the horizon of the month-to-month contract additionally from three to 6 months with impact from April 1.
IGX at the moment facilitates delivery-based trades in 6 completely different contracts comparable to Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly at 5 completely different designated bodily hubs — Dahej, Hazira, Dabhol, Jaigarh and KG Basin.
Source: www.financialexpress.com”