The Indian Energy Exchange (IEX) has divested 26 per cent of its equity holding in the Indian Gas Exchange (IGX) to National Stock Exchange of India (NSE).
The transaction was through NSE’s wholly owned subsidiary NSE Investments. According to officials, NSE became a co-promoter and the second largest shareholder on the IGX gas-trading platform with the stake buy.
IEX, an electricity trading platform, said that it separately shed a 5 per cent equity holding to Oil and Natural Gas Corporation (ONGC).
IEX, which set up the IGX natural gas trading hub, had earlier sold 5 per cent stake each to GAIL (India), Adani Total Gas, and Torrent Gas. After the latest sale, IEX now has 54 per cent share holding remaining in IGX. This makes NSE and IEX the two promoters and the rest equity shareholders in the platform.
IGX is India’s first gas exchange that has secured authorization from Petroleum and Natural Gas Regulatory Board (PNGRB) on December 2, 2020.
“The Government of India is committed to build a sustainable energy economy wherein clean energy sources such as gas have a key role to play,” said Tarun Kapoor, Secretary, Ministry of Petroleum and Natural Gas.
“Both NSE and ONGC bring their unique value proposition and leadership edge in markets and hydrocarbon sector respectively to the table,” said S N Goel, Chairman and Managing Director, IEX and Director, IGX.
IGX offers trade in five contracts at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh. The exchange has with over 500 registered clients and 15 members and has cumulatively traded 100,000 MMBTU volume of gas till now, an IGX statement said.
IGX has been looking to increase its share in the country’s natural gas trade. “Our objectives will be to take a part of spot Liquefied Natural Gas and domestic gas. Spot Gas market in India is around 30 per cent of the total demand,” Rajesh Kumar Mediratta, Director at IGX had told Business Standard in an earlier interview.
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