Guwahati, 10th of November, 2024 : The Indian Gas Exchange (IGX), India’s first automated national level Gas Exchange to promote and sustain an efficient and robust Gas market, organised a seminar on ‘Gas Market Development for North East’, where leading energy producers and stakeholders participated.
Speaking on the occasion, the Managing Director and CEO, Indian Gas Exchange (IGX), Rajesh K Mediratta said, “The Northeast has tremendous potential in the production of Natural Gas. As the Northeast Gas Grid is moving as per schedule and likely to become operational by 2026, the deposit of 6 million MMSCMD Natural Gas can be monetized by the existing producers. This will add to country’s energy security as IGX will help Gas producers to monetise stranded gas who can sell the surplus gas to the other regions.”
Highlighting the role of Natural Gas from Assam and the Northeast in support to India’s energy security, Rajesh K Mediratta said, “India stand to benefit tremendously with the exploration of Northeast’s rich Natural Gas deposits. India is currently importing about 50% of its consumption , around 100 MMSCMD to meet the total demand of 200 MMSCMD required. With the effective gas pipelines in the region, the existing petroleum companies can unearth 6 MMSCMD. This will save approximately ₹14,000 crores apart from allowing backward linkage in the local economy with job and trade opportunities in the region. The access to gas network also opens up doors for newer industries like ceramic and glass which are run exclusively on Natural Gas. Given the natural resources, these industries are expected to thrive in the region. The rejuvenated Gas distribution network with NEGG is also expected to improve supply to tea estates, allowing them to switch back to Natural Gas from the traditional energy sources like coal.”
Mediratta also shared that natural gas is cheaper and cleaner option as compared to LPG and price at which is being supplied by Gas producers in the region at discount of 40% of APM gas sold in other regions. This makes piped gas cheaper than LPG without susbsidies. Therefore, it makes case for households to switch to gas.
Highlighting the market potential for export of Natural Gas from the region, Rajesh K Mediratta said, “Bangladesh has tremendous market potential as the country has been using Natural Gas. The natural gas producers can definitely look at this scope with potential. With the region now connected with the National Gas Grid, there is scope for the Northeast economy to earn by supplying surplus gas at a competitive cost at the IGX to other parts of the country. As the global price is at around USD 13 mmBtu, Northeast provides a huge competitive economic edge for the producers of the region.”
The Indian Gas Exchange (IGX) traded 8 million MMBtu (201 MMSCM) gas volume in October’24, higher by 160% on MoM basis. Decreased APM gas allocations to the CGD sector and high global LNG prices have contributed to increased trade volumes. IGX currently offer trades at 15 delivery points. Out of which, 4 are LNG terminals, 3 are Pipeline Interconnection Points and 8 are domestic gas field land fall points & offers delivery-based trade in six different contracts such as Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly, under which the trade can be executed for twelve consecutive months. During the month, 40 trades (maximum number) were executed in Daily, followed by 29 trades in each Fortnightly & Monthly, 16 trades in Weekly, 8 trades in Day-Ahead & 2 trades in Weekday contract respectively.
ABOUT IG
Established in 2020, the Indian Gas Exchange Limited (IGX) is India’s first automated national-level Gas Exchange for physical delivery of natural gas. The Exchange envisions to architect India as a market-based gas economy. Powered by state-of-the-art technology, the Exchange provides a neutral and transparent marketplace to multiple buyers and sellers to trade in the spot and forward gas contracts at designated physical hubs. IGX is an Associate Company of the Indian Energy Exchange Limited. The Exchange is authorized and regulated by Petroleum and Natural Gas Regulatory Board.For further details, log on to: www.igxindia.com
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