GAIL acquires 5% stake in Indian Gas Exchange
Thesynergyonline Corporate Bureau
NEW DELHI, FEBRUARY 10 :
GAIL (India) has signed a Share Purchase and Shareholders Agreement (SPSHA) with IGX and Indian Energy Exchange Limited (IEX), the promoter and parent company of IGX for acquisition of 5 per cent equity stake in Indian Gas Exchange Limited (IGX).
IGX, India's first automated delivery-based gas trading platform, was launched by Mr . Dharmendra Pradhan, Minster of Petroleum and Natural Gas in June 2020 after which PNGRB notified the Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020. IGX has secured the necessary authorization to operate as a Gas Exchange under the Regulations for a period of 25 years. GAIL is already a member of IGX and has now also joined as a shareholder.
Mr Santanu Roy, Executive Director (BD & CA), GAIL, Mr Rajesh Kumar Mediratta, Director, IGX and Mr Vineet Harlalka, CFO and Company Secretary, IEX signed the SPSHA.
Referring to the occasion, Mr M V Iyer, Director (Business Development), GAIL said that "GAIL has always been committed to and leading the growth of the gas industry in India. GAIL is already among the initial members of IGX and is pleased to be an equity partner of IGX. As the country leaps forward to build a sustainable energy economy, the partnership between GAIL and IGX is an endeavour towards further development of gas markets."
In order to increase the share of natural gas in primary energy mix of the country, Government of India is promoting Gas Trading Exchanges where natural gas can be supplied / traded through an efficient market-based mechanism. It is expected that this partnership will play a role in achieving the Government of India's vision for increasing the share of natural gas from 6 percent to 15 percent.