A Detailed Note on Indian Gas Exchange

The Indian Gas Exchange Limited (IGX) is India’s first and only natural gas exchange, providing all participants with a national market for gas trading. The Exchange is constructing India’s first pan-India gas trading and portfolio management infrastructure, combining gas supply, requirement, and ability to trade data on a platform that allows participants to monitor, execute, and manage their trades. With India’s first Indian Gas Exchange (IGX) set to launch in a few weeks, the Indian gas market will undergo a major transformation. The significance of India’s Natural Gas Exchange is examined in this article and how it will benefit the market.

What is the Indian Gas Exchange? 

Converting your gas-powered vehicle to run entirely on compressed natural gas in India is known as gas exchange (CNG). Indian Gas Exchange Limited (IGX) is India’s first natural gas exchange, offering all players a national level market for gas trade. Numerous buyers and sellers can deal with the actual delivery of natural gas on IGX, which allows for automated trading. There are numerous advantages to doing so, including cost savings and helping to reduce your carbon footprint. On the other hand, there are a few potential stumbling blocks. The Indian gas exchange is a market where natural gas producers and buyers come together to trade Indian gas. It is an online platform that assists businesses in managing gas supply risk and hedging against high price volatility. The Indian gas exchange was founded in 2002 to provide a transparent and efficient platform for natural gas trading.

The Indian Gas Exchange, or IGX, is a benchmark Indane gas contract based on the spot market or the gas procurement pool, whichever is lower. The benchmark price is updated on the first trading day of each month based on the previous trading day’s transactions. All entities in the gas-based power and steel sectors use IGX prices. Other industries, such as fertiliser, chemicals, and city gas distribution, use it as a benchmark price. It’s a clearinghouse for information on natural gas in the United States, including transportation, storage, distribution, and trading. The Indian Gas Exchange is the country’s oldest non-governmental organisation (NGO).

How Will this Exchange Work? 

The Indian Gas Exchange, a new exchange based in India, has just launched to revolutionise the way energy is secured and traded. The founders realised the country needed a platform like this after conducting research. Gas-powered vehicles, for example, are becoming increasingly popular. On the other hand, vehicle owners are having difficulty finding gas on time. People require a safe and secure method of purchasing and selling gas. Users will improve the efficiency and security of their vehicles by buying and selling fuel on the platform.

The Indian government recently announced that The Indian Gas Exchange (IGX), the country’s largest gas trading platform, will be launched. Indian Oil Corporation and Oil and Natural Gas Corporation are two of the five investors in the Indian Gas Exchange. Businesses will be able to trade on a digital trading platform that functions similarly to a traditional stock exchange. To put it another way, buyers and sellers will be able to buy and sell gas without the involvement of a third party. It is hoped that this will lower gas prices and increase competition in the industry. 

India’s Gas Trade Fixation:

• As India keeps moving to increase the percentage of Indian gas in the Energy bin from 6.2% in 2018 to 15% by 2030, natural gas imported goods are expected to become a larger percentage of residential oil production.
• In addition, over the last two fiscal years, Indian Gas Exchange production has greatly reduced as existing natural gas references have been less efficient.
• Oil and gas manufactured and assembled financial records with less than half of Total Indian natural gas production. The other half is composed of manufactured Indane gas.

Conclusion

Since its inception, IGX has been one of the most active exchanges for natural gas globally. Intending to provide a liquid, transparent and efficient trading platform for natural gas in India, IGX has been instrumental in providing a market for spot and forward trading of natural gas. IGX is the first and only natural gas exchange in India. IGX was registered as a company in May 2012 and started its operations in June 2012. The Securities regulate IGX’s operations, and IGX’s objective is to provide a transparent, efficient, competitive, and technologically advanced market for natural gas trading in India. It has been instrumental in providing natural gas at a competitive price to power plants in India with the help of its large customer base.