Oil and Natural Gas Corporation Ltd. (ONGC) has become the first Exploration and Production (E&P) company in India to trade domestic gas on Indian Gas Exchange.
- The first online trade was made on 23rd May, 2022 by ONGC Director (Onshore) In-charge Marketing on India’s first automated national level Gas Exchange, IGX.
- The gas traded is from ONGC Krishna Godavari 98/2 block.
About the ONGC –
- The Oil and Natural Gas Corporation (ONGC) is an Indian oil and gas explorer and producer.
- It is under the ownership of Ministry of Petroleum and Natural Gas, Government of India.
- Its headquarters is situated in New Delhi.
- ONGC was founded on 14th August 1956 by the Government of India.
- It was conferred with ‘Maharatna‘ status by the Government of India in November 2010.
- On Jan 30th 2018, ONGC acquired the entire 51.11% stake of Hindustan Petroleum Corporation Limited (HPCL).
About the India Gas Exchange –
- Ministry of Petroleum and Natural Gas has launched the Indian Gas Exchange (IGX), first nationwide online delivery-based gas trading platform.
- IGX is a delivery-based trading platform for delivery of Natural Gas.
- Incorporated as a wholly owned subsidiary of the IEX – India’s energy market platform, IGX enables market participants to trade in standardised gas contracts.
- The platform is fully automated with web-based interface to provide seamless trading experience to the customers.
- Imported Liquified Natural Gas (LNG) will be regassified and sold to buyers through the exchange, removing the requirement for buyers and sellers to find each other.
- This will mean that buyers do not have to contact multiple dealers to ensure they find a fair price.
- The exchange also allows much shorter contracts – for delivery on the next day, and up to a month – while ordinarily contracts for natural gas supply are as long as six months to a year. This, experts say, will allow buyers and sellers greater flexibility.