State-owned GAIL will acquire a 5% equity stake in the Indian Gas Exchange (IGX) for Rs 3.6 crore ($490,000).
IGX is a natural gas trading platform and a wholly owned subsidiary of Indian Energy Exchange.
Last month Adani Total Gas Pvt LTd and Torrent Gas Ltd each picked up a 5% stake in the natural gas trading platform for Rs 3.7 crore (around $505,000) each.
“The partnership between GAIL and IGX will benefit the gas sector as a whole,” Santanu Roy, executive director (business development and corporate affairs), GAIL, said.
GAIL is committed towards the development of a gas-based economy in the country, he added.
With 15 members and over 500 registered clients, IGX acts as an alternative to the gas spot market in India. It currently operates from three physical hubs –Hazira and Dahej in Gujarat and KG Basin in Andhra Pradesh.
“With a strong impetus from the government to create a conducive policy and regulatory framework, gas markets are on the cusp of breakthrough growth. Competitive domestic gas markets are crucial to building a gas-based economy,” SN Goel, chairman, IEX, and director, IGX, said.
IGX said it had received authorisation to be the first gas exchange from the Petroleum and Natural Gas Regulatory Board under the Gas Exchange Regulations.
It reported Rs 10 lakh as turnover for FY20 and the net worth stands at Rs 7.6 crore.