(Reuters) – The Indian Gas Exchange (IGX) is looking for regulatory approval to launch a 3-6 month gas contract, its chief executive, Rajesh K Mediratta, said on Friday.
“We are awaiting a clearance from PNGRB (Petroleum and Natural Gas Regulatory Board),” Mediratta told reporters at a press conference.
IGX, a unit of Indian Energy Exchange, currently has intraday, dayahead, daily, and fortnightly contracts.
The pricing of the 3-6 month contract will be linked to global benchmarks and IGX’s own index called GIXI.
The new long-duration contracts will have a payment cycle of a fortnight compared to the current 2-3 days, Mediratta said.
Additionally, IGX is considering introducing green certificates for trading, he said, as the government looks to make the usage of 1% compressed bio gas (CBG) mandatory for city gas sellers.
“If a city gas distributor doesn’t have a CBG plant, they can buy these certificates. Trading will also encourage compressed bio gas production,” he said.
IGX has also signed a preliminary agreement with Austria’s Central Europeans Gas Hub to explore gas trading opportunities, including those for green gases such as hydrogen and methane.
India wants to raise its share of gas in the domestic energy mix to 15% by 2030 from 6.2% at present.
(Reporting by Nidhi Verma in New Delhi; Editing by Sonia Cheema)
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