On Monday India will get its own natural gas trading platform. This platform will help organise local market price for gas through the system of of demand and supply matching. Dharmendra Pradhan, the oil Minister of India, what launch the Indian gas exchange marking the the beginning of natural gas trading.
The platform will be e available to several buyers and sellers to trade on the spot and forward contracts at designated physical hubs. It would be neutral and transparent where both the parties would exchange gas as the the underlying commodity. According to several sources, IGX will facilitate efficient and competitive pricing of gas and maintain market integrity. Facilitation of price would be done by inviting x scheduled words from buyers and sellers on which the price Discovery mechanism would be enabled to settle the final trade. Right now, only 6 market products will be offered which are day ahead, daily, weekly, weekdays, fortnightly and monthly.
The contracts that will be traded at the platformwould require compulsory specific physical delivery of the trade. Natural gas They would require to fulfill the condition that such contracts are are non transferable in nature. In the first phase,training is organised to begin at the physical hubs at hazira and dahej in Gujarat and Oduru in Andhra Pradesh, however, new hugs would soon be introduced in the near future.
The organizers have successfully conducted 3 mock trading sessions on 20 March, 9 April and 21 May 2020. These sessions witnessed significant participation from the industry. The building will be done anonymously without revealing the Identity of the seller or the buyer.