Discussion
India's first gas exchange, the Indian Gas Exchange (IGX), was launched as a wholly owned subsidiary of Indian Energy Exchange. Which of the following statements are correct ?
1. It is a digital trading platform that will allow buyers and sellers to trade both in the spot market and in the forward market for imported natural gas.
2. It will allow trade across three hubs - Dahej and Hazira in Gujarat and Kakinada in Andhra Pradesh.
3. 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.
4. Only inter-governmental trade in domestically produced natural gas is allowed at the gas exchange.
Select the correct answer using the code given below :
Answer: C
Statements 1, 2 and 3 are correct, so the answer is Only 1, 2 and 3.
The Indian Gas Exchange, launched in June 2020 as a subsidiary of the Indian Energy Exchange, is a digital platform for spot and forward trading of imported natural gas (1). It began with three physical hubs, Dahej and Hazira in Gujarat and Kakinada in Andhra Pradesh (2), and imported LNG is regasified and sold through it, so buyers and sellers no longer need to find each other bilaterally (3).
Statement 4 is wrong: domestically produced gas, whose price was fixed by the Government at the time, was not traded on the exchange; the platform was built for imported gas. That rules out '1, 2, 3 and 4', while the other options leave out a correct statement.
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