Liquefied natural gas (LNG) terminal owners, state-run GAIL (India) Ltd and Petronet LNG Ltd (PLL), have joined India’s first natural gas exchange that went online on Monday, said Rajesh Kumar Mediratta, director, Indian Gas Exchange.
With others such as Manikaran Power, Torrent Power and Adani Gas on board, the exchange will help revive stranded gas fuelled power projects and reduce fertilizer prices and subsidy, Mediratta said.
The other members and clients of the exchange are Geeta Power, GMR Group, Piramal Glass, Asahi Glass, Gujarat State Fertilizers & Chemicals Ltd, Gujarat Narmada Valley Fertilizers & Chemicals, Krishak Bharati Cooperative Ltd, Saint Gobain, Kajaria Ceramics, Bhagyanagar Gas, Maharashtra Natural Gas Ltd, Haryana City Gas, and Gujarat Borosil.
The natural gas trading platform, which has been set up by Indian Energy Exchange, will also help discover market prices of gas on the exchange, launched by petroleum minister Dharmendra Pradhan.
“The Indian Gas Exchange will offer six market products beginning from day-ahead market and forward contracts, including daily, weekly, weekday, fortnightly and monthly, at three physical hubs in Dahej, Hazira in Gujarat, and Odoru in Andhra Pradesh to begin with while it plans to add more hubs soon,” the company said.
India consumes around 145 million standard cubic metres a day (mmscmd) of gas. India, along with China, is expected to be a significant driver of demand for natural gas post 2021. Being the biggest emitter of greenhouse gases after the US and China, India aims to achieve its emission reduction commitments through the use of natural gas and green fuel.
“We as IEX desire to play in the overall energy basket of the country, which is beyond electricity. So, electricity is one and gas is the other and there could be many similar players of energy baskets,” said Rajiv Srivastava, managing director and chief executive officer, IEX.
The government has been pushing for a gas-based economy. Gas accounts for around 6.2% of India’s primary energy mix against the global average of 24%. The government plans to increase this to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution and steel.