New Delhi: Oil and Natural Gas Corporation Ltd. (ONGC) has become the first Exploration and Production (E&P) company in India to trade domestic gas on Indian Gas Exchange.
The first online trade was made today by ONGC Director (Onshore) In-charge Marketing Anurag Sharma on India’s first automated national level Gas Exchange, IGX. The gas traded is from ONGC Krishna Godavari 98/2 block.
After the deregulation of the gas pricing ecosystem in 2000-21, ONGC has prepared itself to reap the benefits. The quantity sold by ONGC through the Gas Exchange will be enhanced slowly.
Speaking on the occasion Director (Onshore) Anurag Sharma conveyed that it is heartening to learn that ONGC is becoming the first E&P company to trade domestic gas at IGX and is ready to realize higher value for every molecule of gas available for sale.
In March 2022, ONGC joined IGX as a proprietary member. This association became possible after the Ministry of Power and Natural Gas (MoPNG) order of August 2021, allowing domestic Gas to be traded on the Exchange platform.
ONGC is India’s largest domestic gas producer and their gas sales on the Exchange are touted to be a win-win for the company, government and gas eco-system at large. This will enable ONGC to sell flexibly based on the actual production profile of their gas wells. Further, market-based pricing will also give enough incentives to maximise domestic gas production, which will help reduce imports and save the precious foreign exchange for the country.
Indian Gas Exchange (IGX) – India’s first automated national-level gas exchange for physical delivery of natural gas, envisions to architect India as a market-based gas economy – presently offers six delivery-based contracts for trading in gas including Day Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly through five designated physical hubs including Dahej, Hazira, Dabhol, Jaigarh and KG Basin. The Exchange has built a robust ecosystem with over 500+ registered clients and 25 members.
Established in 2020, the IGX is powered by state-of-the-art technology and provides a neutral and transparent marketplace for multiple buyers and sellers to trade in the spot and forward gas contracts at designated physical hubs. It is a subsidiary of the Indian Energy Exchange Limited. IGX is authorised and regulated by the Petroleum and Natural Gas Regulatory Board.
– global bihari bureau
