IEX soars 13%, hits new high on pact with NSE & ONGC to build gas markets

Shares of Indian Energy Exchange (IEX), on Friday, advanced 13 per cent to hit a new high of Rs 347.80 on the BSE in intra-day trade after the company entered into strategic partnership with the National Stock Exchange (NSE) of India and Oil and Natural Gas Corporation (ONGC) to build gas

The stock surpassed its previous high of Rs 322.85, touched on February 11, 2021. In the past three months, it rallied 60 per cent, against 12 per cent rise in the S&P BSE Sensex.

On Wednesday, IEX announced strategic divestment of 26 per cent of its equity holding in the Indian Gas Exchange (IGX) to the NSE and additional 5 per cent equity holding to ONGC.

The IGX is a subsidiary of the IEX – India’s premier nationwide, automated electricity trading platform. IGX is India’s first gas exchange after it secured authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) on December 2 last year. The IGX, working in collaboration with strong leaders from both the public as well as private sector, has a pioneering role in developing a vibrant gas market in the country.

The collaboration between NSE, IEX and other strong public and private sector leaders to strengthen IGX will go a long way in accelerating the development of the gas IGX will provide a vibrant gas market platform for accelerating gas consumption in the country thereby helping towards achieving national sustainable energy aspirations, said Vikram Limaye, MD & CEO, NSE.

IGX has a robust ecosystem of more than 6,500 market participants which include all distribution utilities in the country, major power generators as well as over 4,500 open access consumers.

Indian gas sector is poised for a breakout growth in demand, led by city gas distribution (CGD) coupled with increasing dependency on imported liquefied natural gas (LNG). Supported by ramp up in LNG terminal and gas T&D infrastructure enabling short term trading of gas, the company said.

Meanwhile, under Paris Climate Agreement, the government commitment to reduce carbon emissions will promote use of natural gas. The government’s vision of increasing share of natural gas in total energy basket from 6 per cent to 15 per cent by 2030 will increase gas consumption in the economy from current 160 MMSCMD to 600+ MMSCMD, it said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link