The launch of the new electronic trading platform for gas by Indian Energy Exchange (IEX). Today has opened a replacement chapter. Within the energy history of India and help the state move towards free-market pricing of gas, oil minister Dharmendra Pradhan said.
“With this landmark, India is joining the club of progressive economies. As there’ll be a market-driven pricing mechanism. India Gas Exchange (IGX) will play a much bigger role towards realizing a free marketplace for gas,” he said, speaking at the virtual launch ceremony of IGX.
The minister also said the downstream regulator. Petroleum and Gas Regulatory Board (PNGRB) will soon announce a replacement “pro-business” tariff policy for gas transport. “The government has no business to be in business and therefore the consumer is that the king during a free market,” Pradhan said.
Mega investments on Liquefied gas
He also said that through IGX, India’s vision on mega investments on Liquefied gas (LNG) terminals. Gas pipelines, CGD infrastructure, and permission. For the market-driven prices, mechanisms are going to be materialized.
Pradhan said the Indian gas market has multiple price bands for assets including. Pre-NELP, NELP, heat and high (HTHP), and Deepwater and Ultra trouble blocks, additionally to the long-term contracted LNG price.
“India may be a price-sensitive country. Today, we are the third-largest energy consumer but our per capita energy consumption is extremely low. How can we capture a competitive gas price in-country? the worth mechanism is moving towards a market-based price formula,” Pradhan said.
According to the minister, the new electronic trading platform as well as for gas is that the biggest indicator of the center’s progressive policy because it completes the whole energy value chain from gas production from multiple sources and imports of LNG from diff as well as parts of the globe to have a transparent price mechanism.
