IEX Divests 4.93% Stake in Indian Gas Exchange to IndianOil

Indian Energy Exchange (IEX) has divested its 4.93 per cent equity stake in Indian Gas Exchange Ltd (IGX) to the country’s largest oil refiner Indian Oil Corporation (IndianOil).

IEX and NSE (National Stock Exchange) have been promoters of IGX while other strategic investors include GAIL (India) Ltd, ONGC Ltd, Torrent Gas Pvt Ltd and Adani Total Gas Ltd.

Commenting on the development, S N Goel, Chairman and Managing Director, IEX and Director, IGX said, “we are delighted to welcome IndianOil as a strategic partner in IGX. IndianOil has diversified and significant presence across the oil, gas, petrochemicals, and fertilizer segments which augurs well in our joint endeavor to build the gas market in India aligned to the government’s vision of accelerating the share of gas in the energy mix to 15% by 2030. We strongly believe that IndianOil will bring huge value through guidance and support to our new initiative of IGX. IndianOil with their huge expertise in gas sector will help add new products for Indian markets.”

“At IndianOil, we acknowledge the important role Indian Gas Exchange has to play in building a gas-based economy and also creating vibrant gas markets in the country. IndianOil is also committed to that vision and has a presence in the complete value chain of gas marketing; from LNG terminals, pipeline network and Gas retailing through the City Gas Distribution (CGD) network. Our successful bids in the 11th Round of CGD bidding is also in line with our strategy to emerge as a dominant player in Indian Gas Market. And given the synergy, our partnership with the Indian Gas Exchange is a step towards attaining our mission of ensuring the availability of Gas across the nation at competitive prices. This partnership will benefit the entire gas sector as we work towards making India a gas hub,” said Shrikant Madhav Vaidya, Chairman, IndianOil.