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Indian Gas Exchange Ltd (IGX), on Wednesday, said that it has begun trading from the two new physical hubs, Dabhol and Jaigarh, in Maharashtra.
All existing contracts offered by IGX – monthly, fortnightly, weekday, weekly and daily – have been made available at the new gas hubs from Tuesday, the firm said in a statement.
The country’s first authorised gas trading platform, IGX operates three existing trading hubs: Dahej and Hazira in Gujarat, and KG Basin in Andhra Pradesh.
The Dabhol terminal is owned by GAIL (India) Ltd and has an operational capacity of 5 MMTPA. The exit point of the terminal has been declared as the Dabhol Hub. The terminal’s current supplies are largely to the western and southern States through two pipelines – Dabhol-Uran-Dahej-Panvel Pipeline (DUDPL) and Dabhol-Bengaluru Pipeline (DBPL) – connecting the terminal to the National Gas Grid.
H-Energy, through its wholly-owned subsidiary, Western Concessions Private Ltd, will shortly commence operations of India’s first Floating Storage and Re-Gasification Unit based LNG terminal project at the Jaigarh Port. The Jaigarh Gas Hub is at the interconnection point of the tie-in connectivity Jaigarh-Dabhol pipeline to DUDPL located in Dabhol.
Despite being closer to each other, the two new gas hubs will operate independently, which will help avoid layering up of the transportation tariff, the statement added.
“The gas buyers connected to National Grid will now have an option to purchase gas from additional hubs, apart from the currently operating hubs in Dahej, Hazira and KG Basin,” said Rajesh K Mediratta, Chief Business Officer, IGL, in the statement. “We will receive RLNG from Jaigarh hub, which will bring spot LNG and will benefit the end buyers.”