Adani Total Gas and Torrent Gas have each bought a 5 per cent stake in Indian Gas Exchange (IGX), the country’s first gas exchange, which until now was wholly-owned by the Indian Energy Exchange (IEX).
IEX announced this first-ever disinvestment in the subsidiary on Friday. The 10 per cent stake has been valued at ₹7.38 crore, an IEX spokesperson told BusinessLine .
IGX is an automated trading platform for imported liquefied natural gas (LNG) that enables buyers and sellers to trade on the spot and the forward market. The exchange “is amply equipped to transform the gas sector in the coming years as it will enable efficient and competitive gas pricing and help in securing equitable distribution of natural gas in the country,” Suresh P Manglani, CEO, Adani Total Gas, said in a statement.
IGX received authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under the Gas Exchange Regulations, on December 2, 2020. The approval has been granted for 25 years, making IGX the first regulated delivery-based gas exchange in the country. Domestically-produced gas, most of it by the state-owned ONGC and accounting for almost half of India’s consumption, continues to be price-controlled by the government.
“In our journey to shape the nascent gas markets in the country, we are delighted to partner with Adani Total Gas and Torrent Gas,” Rajesh K Mediratta, IGX Director, said in the statement. “We look forward to working in collaboration as IGX braces to play a pioneering role in developing India’s gas markets.”
The Centre’s decision to allow entry of more players in the city gas distribution (CGD) industry has attracted investment from the likes of Adani Total Gas, which has emerged as India’s largest CGD player. The firm had changed its name from Adani Gas in November to reflect the 37.4 per cent stake of the French energy giant in the firm. The Adani group holds the same stake size, with the remaining shares being held by public shareholders.
IGX was the first gas exchange in the country to have secured authorisation from PNGRB under Gas Exchange Regulations 2020. Since its launch in June last year, the exchange has traded 75000 million British Thermal Units (MMBTU) of gas. Currently, IGX has 16 members and more than 500 registered clients, the statement added.
The exchange has three physical hubs at Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh, and plans to introduce two new hubs, in Dhabol, Maharashtra and in West Bengal, the statement added, subject to approval from PNGRB, the regulator for gas exchanges in the country.
Parent company IEX on Friday reported a net profit of ₹8.1 crore for the December quarter of the ongoing financial year, a year-on-year rise of 39.5 per cent.