Indian Gas Exchange will get nod to commerce in home pure fuel

The Indian Gas Exchange (IGX), the one fuel buying and selling platform within the nation, has acquired the much-awaited regulatory nod to commerce in home pure fuel. The home fuel buying and selling shall be launched on May 16, the corporate stated.

On August 19, 2021, the ministry of petroleum authorised home fuel producers to promote as much as 500 million commonplace cubic metres or 10% of annual manufacturing from contract space, whichever is larger, per 12 months by means of fuel exchanges.

With this approval, upstream fuel manufacturing of promoting and pricing freedom fuel, resembling from CBM,and home small fields, in addition to advertising freedom ceiling fuel (tough fields) can now be successfully managed by means of versatile contracts at IGX.

Rajesh Okay Mediratta, managing director & CEO, IGX stated, “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 change believes, fuel producers could have speedy gross sales alternative which is able to lead to maximisation of home fuel 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 stated.

IGX is including regional hubs and every regional hub could have a number of supply factors to facilitate commerce of home fuel on the change as per amended Gas Exchange Regulations notified on May 6, it stated.

IGX just lately prolonged the horizon of the month-to-month contract additionally from three to 6 months with impact from April 1.

IGX at present facilitates delivery-based trades in 6 totally different contracts resembling Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly at 5 totally different designated bodily hubs — Dahej, Hazira, Dabhol, Jaigarh and KG Basin.

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