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IGX Introduces Two New Gas Trading Hubs At Dabhol & Jaigarh In Maharashtra
H-Energy through its wholly owned subsidiary, Western Concessions Private Limited will shortly commence operations of India's first Floating Storage and Re-Gasification Unit based LNG terminal project at the Jaigarh Port
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The Indian Gas Exchange (IGX), India’s first authorised nationwide delivery-based Gas Exchange, is pleased to commence the gas trade from the two new physical hubs - Dabhol and Jaigarh located in Maharashtra apropos receipt of the requisite approvals from the Petroleum and Natural Gas Regulatory Board (PNGRB).
Currently, IGX operates three gas hubs - Dahej and Hazira in Gujarat and KG Basin in Andhra Pradesh. The introduction of two new additional hubs in Maharashtra, will allow the Exchange to operate from five physical gas hubs.
All the existing contracts offered by IGX i.e., Monthly, Fortnightly, Weekday, Weekly and Daily will be made available at the new gas hubs with effect from 20th April 2021. The move is aimed at increasing the availability of natural gas from additional sources on the Exchange platform for the benefit of the end consumers.
The Dabhol terminal is owned by GAIL (India) Ltd and has an operational capacity of 5 MMTPA. The exit point of the terminal has been declared as the Dabhol Hub. The terminal’s current supplies are largely to the Western and Southern states through two pipelines - Dabhol-Uran-Dahej-Panvel Pipeline (DUDPL) and Dabhol-Bengaluru Pipeline (DBPL), connecting the terminal to the National Gas Grid.
H-Energy through its wholly owned subsidiary, Western Concessions Private Limited will shortly commence operations of India's first Floating Storage and Re-Gasification Unit based LNG terminal project at the Jaigarh Port. The Jaigarh Gas Hub is at the interconnection point of the tie-in connectivity Jaigarh-Dabhol pipeline to DUDPL located in Dabhol.
Despite being closer to each other, the two new gas hubs would operate independently which will help to avoid layering up of the transportation tariff. Additionally, with the implementation of unified tariff, the customers will be able to avoid multiple tariffs for transportation of gas, further adding to gas-to-gas competition in the country.
Commenting on the occasion, Darshan Hiranandani, MD & CEO, H-Energy stated, “I congratulate IGX on commencement of the Dabhol and Jaigarh Hub. H-Energy is committed to this platform and shall ensure volumes are always available for the benefit of customers. Jaigarh LNG terminal in conjunction with IGX will herald a new era for India’s gas consumers.”
Speaking on the development, Rajesh K Mediratta, Chief Business Officer, Indian Gas Exchange said,” The gas buyers connected to National Grid will now have an option to purchase gas from additional hubs apart from the currently operating hubs in Dahej, Hazira and KG Basin. We will receive RLNG from Jaigarh hub, which will bring spot LNG and will benefit the end buyers. This development besides our initiatives such as introduction of open auction matching as well as other market friendly features of our trading systems will enhance customer experience and competition. We continue to work pro-actively in collaboration with stakeholders to develop the gas markets ecosystem in the country”.
More recently, IGX introduced open auction mechanism on its platform allowing buyers to compare gas prices across the hubs and enabling them to make bidding decision basis the most competitive gas price for the required duration. The Continuous Trading methodology has also been introduced in Daily contracts that facilitates immediate trading for short duration contracts. Since launch in June 2008, the Exchange has successfully built a robust ecosystem with over 500 registered clients and 16 members and has cumulatively traded 2,36,300 MMBTU volume of gas already.