Thursday, June 18, 2020

GAIL, Adani, Petronet LNG join IGX; gas price of $4.07 per unit discovered


Launched on Monday, the platform - set up by the Indian Energy Exchange - has so far traded 100 mmBtu gas.


At a time when the price of domestic natural gas is as low as $2.39 per million metric British thermal unit (mmBtu), the Indian Gas Exchange (IGX) — the country’s first natural gas exchange — has got a market-discovered price of $4.07 per unit within the first two days of operation.

Launched on Monday, the platform — set up by the Indian Energy Exchange — has so far traded 100 mmBtu gas.

Giving major boost to IGX, big liquefied natural gas (LNG) players like state-run GAIL (India) and Petronet LNG have joined the exchange as members. Private sector majors like Adani Gas, too, have joined IGX as its member partner.

“We have brought in 12 members and over 350 clients so far. GAIL and Petronet have joined as our members,” said Rajiv Srivastava, managing director and chief executive officer, IEX.

Other members of the platform include Manikaran Power, GMR Energy Trading, Zak Venture, Kreate Energy, Gita Power and Infrastructure, Abja Power, Arunachal Pradesh Power Corporation, Andhra Pradesh Gas Power Corporation, and Instinct Infra and Power.

Trade members facilitate trade on the exchange on behalf of their clients. They act as the link between the exchange and the clients registered on the exchange.

A source indicated that 100 mmBtu of overall trade was for daily contracts only, even though there were bids for fortnightly and monthly contracts as well. The market-discovered price for first two days was Rs 309 per mmBtu or $4.07 per mmBtu. The exchange is LNG-driven, while the price of domestically produced natural gas is notified by the government. At present, the domestic natural gas price is at $2.39 per mmBtu, which most producers, including Oil and Natural Gas Corporation, have cited as unviable.

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