ONGC acquires 5% stake in Indian Gas Exchange (IGX)
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) on 10 March 2021 to acquire 5 per cent equity in IGX. The SPSHA was signed in the presence of Secretary, Ministry of Petroleum and Natural Gas, Tarun Kapoor and ONGC CMD Shashi Shanker in Shastri Bhawan, New Delhi.
On this occasion, ONGC CMD said that 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 develop the gas markets in the country through joint and synchronised efforts in the coming years.”
Indian Gas Exchange Ltd. (IGX) is India’s first automated national level Gas Exchange to promote and sustain an efficient and robust Gas market and to foster gas trading in the country. Indian Gas Exchange (IGX) would play an important role to facilitate achieving the Government of India’s target of increasing share of natural gas in India’s energy basket from current 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. The Exchange operates under the regulatory framework of Petroleum and Natural Gas Regulatory Board (PNGRB). Apart from ONGC, GAIL, Torrent Gas Private Limited, Adani Total Gas Limited have already acquired 5% equity each.