The Indian Gas Exchange (IGX) has received approval from Petroleum and Natural Gas Regulatory Board (PNGRB) to trade domestic gas on its platform. IGX will launch the domestic gas trading starting May 16, 2022. This approval is in line with Ministry of Petroleum and Natural Gas’ (MoPNG’s) notification dated August 19, 2021 where domestic gas producers were authorised to sell up to 500 million standard cubic meters or 10% of annual production from contract area, whichever is higher, per year through Gas Exchanges.
With this approval, upstream gas production of Marketing & Pricing Freedom gas can now be effectively managed through flexible contracts at IGX. In addition to this, producers will also have immediate sales opportunity which will eventually result in maximisation of domestic gas production and increased liquidity on the platform. Small buyers who currently don’t have access to domestic gas either due to their size or allocation priority can now come to the Exchange and procure domestic gas at competitive prices and ultimately build a Gas ecosystem.
IGX is also adding regional hubs and each regional hub will have multiple delivery points to facilitate trade of domestic gas on the Exchange as per amended Gas Exchange Regulations notified on May 06, 2022. IGX recently extended the horizon of the monthly contract also from three to six months with effect from April 01, 2022.
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