IGX MD Mediratta envisions efficient gas market in Northeast India

Managing Director and CEO, Indian Gas Exchange (IGX), Rajesh K Mediratta envisions a vibrant and efficient gas market in Northeast India and aim to connect domestic producers like Assam Gas, OIL and ONGC with national gas markets by facilitating Gas Trading through transparent, online, competitive and platform domestic gas producers to sell their gas efficiently.

Mediratta who was in Guwahati on Friday said, “We have already provided very flexible sale options to big producers like ONGC, RIL. We currently trade about 3.7 MMSCMD of gas this year so far and almost 40% of gas is domestic produced gas from major producers like RIL/BP, ONGC, Vedanta and HOEC. While producers face uncertainty in their production schedule, they can sell at very short notice. ONGC from new fields with uncertain sale, can sell their gas volumes very transparently at best market prices. They use our day-ahead, week, fortnight and monthly contracts to sell for their uncertain production volumes. Therefore, we envision to bring national gas markets to their doors which will enable to fetch best prices. This would contribute to the economic development of the region by providing competitive, open market.”

He added, “Presently integrating NER with the national gas grid through the IGGL network is expected to be completed soon. Developing cross border pipelines with neighbouring countries can enhance overall scope for marketing gas to our neighbouring countries particularly Bangladesh and promote regional cooperation. The development of gas markets and infrastructure in Northeast India offers economic benefits, including increased gas production, better revenues for gas producing companies and significant revenue for the region. This will increase employment, attract industries, leading to economic growth. Overall, country will benefit from reducing its import dependence. Currently, NER has about 10 MMSCMD stranded gas, and if we produce that gas, it can reduce imports. LNG import is almost 50% of country’s total demand and increased domestic gas production in NER, will reduce dependence to that extent.”


He added, “IGX facilitate trade at most competitive prices. Given, with competition, prices can come down and can make gas more affordable. It is expected that by 2026, international gas prices will soften to single digit (say about $8/MMBtu), competitive forces will bring down price at exchange also and that can make gas prices for household more affordable.
IGX can contribute to India’s energy transition by one, promoting Gas as a Clean Fuel, encouraging the use of gas as a cleaner alternative to coal and other fossil fuels, second, facilitating the Integration of Renewable Energy in future, supporting the integration of renewable gas, such as biogas and biomethane, into the gas grid and third, driving Innovation, by bringing innovation through IT enable solutions through gas trading and creation of gas trading hub in NE in near future.”

The Indian Gas Exchange (IGX), India’s first automated national level Gas Exchange to promote and sustain an efficient and robust

He said, “India stands to benefit tremendously with the exploration of Northeast’s rich Natural Gas deposits. India is currently importing about 50% of its consumption, around 100 MMSCMD to meet the total demand of 200 MMSCMD required. With the effective gas pipelines in the region, the existing petroleum companies can unearth 6 MMSCMD. This will save approximately Rs 14,000 crores apart from allowing backward linkage in the local economy with job and trade opportunities in the region. The access to gas network also opens doors for newer industries like ceramic and glass which are run exclusively on Natural Gas. Given the natural resources, these industries are expected to thrive in the region. The rejuvenated Gas distribution network with NEGG is also expected to improve supply to tea estates, allowing them to switch back to Natural Gas from the traditional energy sources like coal.”

Mediratta also shared that natural gas is cheaper and cleaner option as compared to LPG and price at which is being supplied by Gas producers in the region at discount of 40% of APM gas sold in other regions. This makes piped gas cheaper than LPG without subsidies. Therefore, it makes case for households to switch to gas.

The Indian Gas Exchange (IGX) traded 8 million MMBtu (201 MMSCM) gas volume in October’24, higher by 160% on MoM basis. Decreased APM gas allocations to the CGD sector and high global LNG prices have contributed to increased trade volumes. IGX currently offer trades at 15 delivery points. Out of which, 4 are LNG terminals, 3 are Pipeline Interconnection Points and 8 are domestic gas field land fall points & offers delivery-based trade in six different contracts such as Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly, under which the trade can be executed for twelve consecutive months. During the month, 40 trades (maximum number) were executed in Daily, followed by 29 trades in each Fortnightly & Monthly, 16 trades in Weekly, 8 trades in Day-Ahead & 2 trades in Weekday contract respectively.