Adani Total Gas, Torrent Gas invest in IGX, acquire 5% stake each

Adani Total Gas Ltd and Torrent Gas Pvt Ltd, India''s two leading energy players with stakes in both upstream and downstream hydrocarbon value chain.

Adani Total Gas and Torrent Gas have become the first strategic investors in IGX (Indian Gas Exchange) by acquiring five per cent stake each, according to the Indian Energy Exchange (IEX).

The IGX is an arm of IEX and first authorised gas exchange in the country.

The IGX partnership with the two leading gas players will go a long way in developing India's gas markets, an IEX statement said.

The IEX had on Friday announced the first strategic divestment of shares in the IGX.

Adani Total Gas Ltd and Torrent GasPvt Ltd, India's two leading energy players with stakes in both upstream and downstream hydrocarbon value chain, have acquired 5 per cent equity stake each in the IGX.

Speaking on the development, Rajesh K Mediratta, Director, IGX said in the statement, "IGX envisions to play a key role in the development of India's gas market which is aligned with the government's vision to increase the share of gas in the energy mix from 6 per cent to 15 per cent by 2030."

"In our journey to shape the nascent gas markets in the country, we are delighted to partner with Adani Total Gas and Torrent Gas. We look forward to working in collaboration as IGX braces to play a pioneering role in developing India's gas markets," he added.

Suresh P Manglani, CEO, Adani Total Gas Ltd, said in the statement, "Adani Total Gas is committed to building gas infrastructure to increase share of natural gas in the India's energy mix. The precedent of IEX has remarkably transformed electricity trading in India."

Likewise, the IGX is amply equipped to transform the gas sector in the coming years as it will enable efficient and competitive gas pricing and help in securing equitable distribution of natural gas in the country, he said.

"IGX is one key step towards achieving government vision of a gas-based economy and will play a key-role in discovering India's own price benchmarks," Manglani added.

Jinal Mehta, Director, Torrent Gas Pvt Ltd, said in the statement, India is on the course to become a formidable energy and gas hub. IGX can play a catalytic role for India's gas market and will stimulate demand, increase availability and ensure competitive prices."

Torrent's investmentin IGX, which is India's first delivery-based gas exchange, is in line with our strategy to enhance our footprint in India's energy landscape, Mehta said.

IGX is also the first gas exchange in the country to have secured authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) under recently notified Gas Exchange Regulations, 2020.

The Exchange now has 16 members and more than 500registered clients.

With three physical hubs at Hazira and Dahej in Gujarat and KG Basin inAndhra Pradesh, IGX has already traded 75,000 MMBTU since its launch in June 2020.

It also has plans to introduce two new hubs - one in Dhabol, Maharashtra and other in West Bengal.

The company said that this (acquisition) is subject to regulatory approval.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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