The Hindu Business Line : GSPC hopes to start online gas trading by December

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GSPC hopes to start online gas trading by December

Our Bureau

Mumbai , Sept. 7

ONLINE trading of gas on the National Commodities Exchange is expected to begin by December.

According to Mr C.K. Koshy, Managing Director, Gujarat State Petroleum Corporation Ltd (GSPC), the initiative led by GSPC and its subsidiary Gujarat State Petronet Ltd (GSPL), will help smaller gas customers bound by take-or-pay contracts.

"Online trading of gas, which we hope will begin by December will help smaller companies that have to pay for gas even when they go in for shutdowns, by allowing them to trade any surplus, unused quantities," Mr Koshy said at the 11th Indian Oil and Gas Review Symposium.

Companies defaulting on the contract to buy gas supplies may be liable to pay up to 90 per cent of the energy fuel cost.

Currently, only four bourses - New York Mercantile Exchange, London International Petroleum Exchange, Singapore Exchange Derivatives Trading and Sydney Exchange - offer platform for energy future.

According to a senior NCDEX official, initially trading will be restricted to only gas supplies through the 308 km Hazira-Kalol pipeline of GSPL from Hazira to Kalol.

The trading facilities would be open only to the members of NCDEX.

Mr Koshy said the country needs an integrated energy policy to govern guidelines for the gas industry in addition to a transparent regulatory policy.

He said there would be scope for large consumers to use the upcoming LNG terminals and gasification provisions on a toll basis to import LNG for themselves.

Also, gas pipelines being set up in the country should be governed by transparent tariff and common carrier principles.

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