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New Delhi : Petroleum and Natural Gas & Steel Minister Dharmendra Pradhan launched the Indian Gas Exchange (IGX), first nationwide online delivery-based gas trading platform, at an e-ceremony on June 15, 2020. IGX will be a delivery-based trading platform for delivery of natural Gas.
The trade on the platform commenced in his auspicious presence. Incorporated as a wholly owned subsidiary of the IEX – India’s energy market platform, IGX will enable market participants to trade in standardised gas contracts. The platform is fully automated with web-based interface to provide seamless trading experience to the customers, according to a PIB release.
Speaking on the occasion, Pradhan said that the launch of the new electronic trading platform for natural gas thas opened a new chapter in the energy history of India and help the nation move towards free market pricing of natural gas. He said that with this landmark, India is joining the club of progressive economies. As there will be a market driven pricing mechanism, India Gas Exchange (IGX) will play a bigger role towards realising a free market for gas, he added.
The minister also said that Petroleum and Natural Gas Regulatory Board (PNGRB) is working on rationalisation of tariff to make natural gas affordable in every part of the country. The government has no business to be in business and the consumer is the king in a free market, Pradhan added. He said that the country will soon have 50 MMT LNG terminal capacity. He said that the country has long-term gas contracts with many countries like Qatar, Australia, Russia and the US, and has made investments abroad in strategic assets in Mozamibque, Russia and other countries.
He also mentioned about various ongoing projects to strengthen the gas infrastructure in the country like Urja Ganga, Eastern India grid, Indradhanush project in the North-east, Dhamra-Dahej pipeline, coal gasification and CBM policy. He said that country will have more than 30,000 km of pipeline in next few years
According to the minister, the new electronic trading platform for natural gas is the biggest indicator of the centre’s progressive policy as it completes the entire energy value chain from gas production from multiple sources and imports of LNG from different parts of globe to having a transparent price mechanism.