Indian Oil picks up 5% stake in Indian Gas Exchange
State-owned energy company Indian Oil Corp. has acquired a 4.93% stake in Indian Gas Exchange (IGX), it said on December 21.
“The acquisition of equity stake in IGX is a strategic opportunity for Indian Oil to become part of India’s natural gas market and to increase its presence to achieve leadership position in the market,” the company said in a stock exchange filing.
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Earlier this year, Indian Energy Exchange, the parent company of IGX, divested 26% equity holding in IGX to the National Stock Exchange of India and 5% to GAIL. IEX also sold 5% equity to state-run explorer ONGC. It offloaded 5% equity each to two leading private players in the gas value chain – Adani Total Gas and Torrent Gas.
Established in late 2020, IGX is India’s first automated national-level gas exchange for the physical delivery of natural gas. It offers trade in five contracts, including daily, weekly, weekday, fortnightly, and monthly delivery at five physical hubs.
Last month IGX’s CEO Rajesh Kumar Mediratta told NGW that the exchange will soon begin to trade locally produced natural gas which will lead to more end-users participating as buyers.