Mumbai: State-run oil refining and fuel marketing firm has picked up 4.93 per cent stake in Indian Gas Exchange from energy exchange platform Indian Energy Exchange.
In a regulatory filing on Wednesday, IEX said it has “divested 4.93 per cent equity stakes to Indian Oil.”
The company did not disclose further details on the divestment.
Through this strategic partnership, Indian Oil and IGX plans to work together to “develop India’s gas markets towards achieving government’s vision of building a gas-based economy,” it said.
“IndianOil has diversified and significant presence across the oil, gas, petrochemicals, and fertilizer segments which augurs well in our joint endeavor to build the gas market in India aligned to the government’s vision of accelerating the share of gas in the energy mix to 15 per cent by 2030.
We strongly believe that IndianOil will bring huge value through guidance and support to our new initiative of IGX. IndianOil with their huge expertise in gas sector will help add new products for Indian markets,” IEX Chairman and Managing Director and IGX Director SN Goel said.
Currently, IEX and NSE (National Stock Exchange) are promoters of IGX, while GAIL (India), ONGC, Torrent Gas and Adani Total Gas are strategic investors in the gas exchange.
Commenting on the development, Indian Oil Chairman Shrikant Madhav Vaidya said, “At IndianOil, we acknowledge the important role Indian Gas Exchange has to play in building a gas-based economy and also creating vibrant gas markets in the country. IndianOil is also committed to that vision and has a presence in the complete value chain of gas marketing; from LNG terminals, pipeline network and gas retailing through the city gas distribution (CGD) network. Our successful bids in the 11th round of CGD bidding is also in line with our strategy to emerge as a dominant player in Indian gas market.”
He further said that given the synergy, its partnership with the Indian Gas Exchange is a step towards attaining the company’s mission of ensuring the availability of gas across the nation at competitive prices.
“This partnership will benefit the entire gas sector as we work towards making India a gas hub,” Vaidya added.
IGX presently offers six delivery-based contracts for trading in gas including Day Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly, through five designated physical hubs including Dahej, Hazira, Dabhol, Jaigarh and KG Basin.
The exchange has built a robust ecosystem with over 500 registered clients and 21 members. The exchange cumulatively traded 6.5 million MMBtu equivalent to 145 MMSCM of gas in the current financial year.