ONGC acquires 5% stake in Indian Gas Exchange

State-run Oil and Natural Gas Corporation Limited (ONGC) has signed a Share Purchase and Shareholders Agreement (SPSHA) with the Indian Gas Exchange (IGX) and the Indian Energy Exchange (IEX). As per the agreement, ONGC will acquire 5 per cent equity in IGX.

ONGC, CMD, Shashi Shanker said ONGC is aligned to the government’s vision of increasing the share of gas in the energy mix to 15% by 2030. “We believe that the gas markets are key to facilitating the efficient and competitive gas trade in India. ONGC is pleased to be part of the Indian Gas Exchange and we look forward to developing the gas markets in the country through joint and synchronised efforts in the coming years.”

IGX is India’s first automated national-level gas exchange to promote and sustain an efficient and robust gas market and foster gas trading in the country. It will play an important role to facilitate the achievement of the Government of India’s target of increasing share of natural gas in India’s energy basket from 6.5% to 15% by 2030.

IGX started operations on 15 June 2020 as a gas trading platform and has been operating as the Gas Exchange since December 2020. It operates under the regulatory framework of Petroleum and Natural Gas Regulatory Board (PNGRB). Apart from ONGC, GAIL, Torrent Gas Private Limited, and Adani Total Gas Limited have already acquired 5% equity each.

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Free Press Journal