Unveils a report on Gas Market Reforms for 6% to 15% Pathway
Bengaluru, Friday, 22 December 2023: The Indian Gas Exchange (IGX) marked its 3rd anniversary by an event themed as ‘Building Gas based Economy Together’ and also unveiled ICF Report outlining key gas market reforms required to increase natural gas’ share in India’s energy mix from 6% to 15% by 2030. The report, titled “Gas Market Reforms: 6% to 15% Pathway,” was developed by ICF and launched by Dr. Anil Kumar Jain, Chairperson of the Petroleum and Natural Gas Regulatory Board (PNGRB). The report provides a strategic roadmap through short, medium and long-term policy and regulatory interventions.to meet the goal of gas based economy. Several short term measures were identified namely like shortening capacity booking timeframes, establishing an independent system operator, and bringing natural gas under the GST regime.
Dr Anil Kumar Jain, Chairperson, PNGRB, while addressing the gathering said, “Gas based Economy can happen on three pillars: decarbonization, ensuring competitive pricing for consumers, and through fiscal contribution to state and central coffers by stopping leakages from competing fuels. As we navigate the intricacies of transitioning to cleaner energy, the government’s recent announcement on carbon markets is a key positive signal.” He also assured full support to IGX in its journey.
Mr D K Sarraf, Ex-Chairperson, PNGRB said: “ IGX has the potential of a global exchange along with the capacity to act as a transformative catalyst in the Indian gas market. To ensure the seamless functioning of the exchange, a multi-faceted approach is imperative including the establishment of an independent system operator, real-time gas bulletin boards, and standardizing gas purchase and transmission agreements. He added that the power sector, having undergone regulatory evolution, is now two decades ahead of the gas sector. To bring the latter up to par, it is essential to implement simplified transportation tariffs and GST in the gas sector, emphasizing that such reforms are integral to preventing market segmentation and fostering further evolution.”
Speaking at the launch of the report, Mr Rajesh K Mediratta, MD & CEO, Indian Gas Exchange Limited said, “ We see that the Exchange can play a key role in enabling India’s transition to a gas-based economy by benefiting gas producers, transporters, marketers, and consumers. Transparent price discovery, the assurance of payment security, increased penetration, flexibility in trade, and optimal utilization of infrastructure and investments through market-based signals may all contribute to sectoral growth. IGX is working on many new initiatives – namely Long Duration Contracts, CBG, CBG Certificates, ssLNG etc and has recently got empanelment with DGH for e-bidding of domestic gas.”
In CY 2023, IGX has achieved volume of 47.1 lakh MMBtus (till 15 Dec 23) with 225 Participants (44 Members & 181 Clients). In last three years, IGX has not only grown but has also solidified its position by achieving several significant milestones. Today, the Exchange commands about 18% of the spot market share in the country. IGX is also recognized on the global stage, earning a finalist position in the “Rising Star Company” category at the Platts Global Energy Awards 2023. Recently, IGX has also got empanelment with DGH for e-bidding of domestic gas. Simultaneously, IGX is also working on many new initiatives namely Long Duration Contracts, CBG, CBG Certificates, ssLNG etc.
The event concluded with the Panel Discussion, which deliberated the role of exchanges in building a gas-based economy together. The panel comprised eminent industry leaders – Shri Sandeep Jain, ED, IOCL; Shri Sanjay Kumar, ED, ONGC; Shri Suresh Manglani, CEO, Adani Gas; Shri Akhil Mehrotra, MD & CEO, PIL; Shri Amit Mehta, Sr. EVP, RIL; Shri Sumit Kishore, ED, GAIL; Shri Nakul Raheja, Director, Shell India; and Shri Gurpreet Chugh, Managing Director, ICF as the Moderator.
