Gail, Petronet join India’s first natural gas online trading platform
The trading platform will help in reviving the stranded gas-fuelled power projects and will reduce subsidy and fertilizer prices.
GAIL (India) Ltd. And Petronet LNG Ltd. joined India’s first natural gas online exchange on June 15, 2020. The announcement regarding the exchange was made by the Director of Indian Gas Exchange, Rajesh Kumar Mediratta. Both GAIL and Petronet are terminal owners of Liquified Natural Gas (LNG).
As per Rajesh Kumar Mediratta, with others such as Torrent Power, Manikaran Power and Adani Gas on board, the trading platform will help in reviving the stranded gas-fuelled power projects and will reduce subsidy and fertilizer prices.
The Petroleum Minister Dharmendra Pradhan launched the Indian gas trading platform which has been set up by Indian Energy Exchange. The platform will help in discovering the market prices of gas on the exchange.
Indian Gas trading platform:
The Indian Gas exchange will be offering six market products beginning from the day-ahead market and forward contracts, which will include daily, weekly, weekday, fortnightly, and monthly. It will be at three physical hubs in Hazira in Gujarat, Dahej, and Odoru in Andhra Pradesh to begin with. The company has been planning of adding more hubs soon.
The other members and clients of the natural gas exchange include GMR Group, Geeta Power, Asahi Glass, Piramal Glass, Gujarat State Fertilizers & Chemicals Ltd., Krishak Bharati Cooperative Ltd., Gujarat Narmada Valley Fertilizers & Chemicals, Saint Gobain, Bhagyanagar Gas, Kajaria Ceramics, Maharashtra Natural gas Limited, Gujarat Borosil, and Haryana City Gas.
Natural Gas in India:
The consumption of gas in India is around 145 million standard cubic metres a day (mmscmd). Along with China, India has also been expected to be a significant driver of demand for natural gas post-2021. As the biggest emitter of greenhouse gases after the United States and China, India has been aiming to achieve its emission reduction commitments through the use of green fuel and natural gas.
The Indian government has also been pushing for a gas-based economy. The gas accounts for around 6.2% of India’s primary energy mix against the global average of 24%. The Indian government has been planning to increase this to 15% by 2030. India’s gas demand has been expected to be driven by power, fertilizer, steel, and city gas distribution.