ONGC first company to sell Indian gas on domestic exchange [UPDATE]
State-run oil and gas producer ONGC has become the first company in India to trade domestically produced gas on the Indian Gas Exchange (IGX), it said on May 23 via a Twitter post. ONGC’s director onshore Anurag Sharma inaugurated the company’s centralised trading desk and sold gas from KG 98/2 project through the exchange.
ONGC traded 15,000mn Btu of gas at a ceiling price of 769 rupees/mn Btuat KG Basin delivery point. A total of 17 buyers participated that included city gas companies, glass manufacturers, petrochemical companies, power plants, and marketers, IGX said in a separate statement.
The IGX in early May received approval from the Indian downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB) to trade domestic gas on its platform. This approval is in line with the petroleum and natural gas ministry’s notification dated August 19, 2021, where domestic gas producers were authorised to sell up to 500mn m3 or 10% of annual production from the contract area, whichever is higher, per year through gas exchanges.
Only a part of India’s gas production can be sold freely at present while the rest is under an administered price regime. The biggest volume of such gas with marketing and pricing freedom comes from the Reliance-BP’s fields in the KG basin off India’s east coast.
The exchange currently facilitates delivery-based trades in six different contracts such as day-ahead, daily, weekday, weekly, fortnightly and monthly at five different designated physical hubs - Dahej, Hazira, Dabhol, Jaigarh and KG Basin.
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