Q. What is it?
A. IGX is the first nationwide online delivery-based gas trading platform for delivery of Natural Gas.
• It is a wholly owned subsidiary of the IEX – India’s energy market platform.
• The platform is fully automated with web-based interface to provide seamless trading experience to the customers.
Q. How will this exchange work?
A. The IGX is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas across three hubs —Dahej and Hazira in Gujarat, and Kakinada in Andhra Pradesh.
Q. Will domestically produced natural gas also be bought and sold on the exchange?
A. No. The price of domestically produced natural gas is decided by the government. It will not be sold on the gas exchange.
Q. What are its benefits?
1. This will help the nation move towards free market pricing of natural gas.
2. The exchange is expected to facilitate transparent price discovery in natural gas, and facilitate the growth of the share of natural gas in India’s energy basket.
Q. What all are the uses of Natural Gas?
A. It is used as a feedstock in the manufacture of fertilizers, plastics and other commercially important organic chemicals as well as used as a fuel for electricity generation, heating purpose in industrial and commercial units.
It is also used for cooking in domestic households and a transportation fuel for vehicles.