The Indian Energy Exchange (IEX) has announced that GAIL (India) has acquired five percent stake of the company in its arm Indian Gas Exchange (IGX).
The company did not reveal the valuation of the transaction. GAIL is the third investor in IGX after Adani Total Gas and Torrent Gas which has acquired five percent stake each
"IEX, India's premiere electricity exchange has further divested five percent equity stake in the IGX to GAIL (India) Ltd, India's leading natural gas company," the IEX said in a statement.
The statement also mentioned that the partnership between the IGX and GAIL is a significant development. The partnership will go a long way and add robust value addition in development of the gas markets in the country
S N Goel, chairman of IEX and director of IGX, said in the statement, "With strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to build a gas-based economy."
In line, IGX is pro-actively working in collaboration with the stakeholders to build gas markets ecosystem in the country, he added.
"We are delighted to welcome GAIL onboard as our partner and unite our strengths to realize India's vision of a gas-based economy," Goel said.
Santanu Roy, Executive Director (business development and corporate affairs) of GAIL, said in the statement, "GAIL is committed towards development of gas-based economy in the country. The partnership between GAIL and IGX will benefit the gas sector as a whole and pave way for further development of the gas market, more trading through gas exchange and increase in capacity utilisation of pipelines."
Launched on June 15, 2020, as a gas trading platform, the IGX has since become the first gas exchange to receive authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations 2020.
With 15 members and over 500 registered clients, the Exchange offers a compelling alternative to the gas spot market in India by providing ease of trading, payment security and greater access to the market.
It currently operates from three physical hubs
Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
