The Indian Fuel Alternate (IGX) has sought regulatory approvals to launch 3-6 month fuel contracts benchmarked to worldwide fuel costs, its chief govt Rajesh Kumar Mediratta mentioned.
IGX presently permits fuel suppliers to promote the gasoline on the trade for durations starting from day by day, weekly, fortnightly and month-to-month. It additionally affords intraday buying and selling at a set worth.
Mediratta mentioned the trade has utilized to the regulator, Petroleum and Pure Fuel Regulatory Board (PNGRB), for permission to launch three-month and six-month supply contracts listed to fuel benchmarks resembling FIXI and Platts JKM, WIM and Dated Brent.
“We’re awaiting a clearance from PNGRB,” he mentioned.
The brand new long-duration contracts could have a fee cycle of a fortnight in comparison with the present system of funds being made in 2-3 days after supply.
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Additionally, IGX is trying to introduce inexperienced certificates for buying and selling, he mentioned, as the federal government appears to be like to make the utilization of 1 per cent compressed biogas (CBG) obligatory for metropolis fuel sellers.
“The place metropolis fuel retailers have provides coming from CBG vegetation, assembly the duty of getting 1 per cent CBG within the fuel they provide won’t be an issue. However in locations the place they don’t have CBG provides, they’ll purchase these certificates,” he mentioned.
He mentioned, fuel quantity traded on the trade crossed 1 billion cubic metres (4 crore million British thermal models) within the first 9 months of the present fiscal yr. This quantity equals 4.1 crore mmBTU volumes traded in full 2023-24 fiscal (April 2023 to March 2024).
IGX has additionally signed a MoU with Austria’s Central Europeans Fuel Hub to discover fuel buying and selling alternatives, together with these for inexperienced gases resembling hydrogen and methane.
“This partnership goals to strengthen India’s fuel market by leveraging CEGH’s European market experience and IGX’s deep-expertise within the Indian fuel market,” he mentioned.
Key focus areas of the MoU embrace buying and selling of natural gas and renewable gases like hydrogen, biomethane, and e-methane, commodity-related certificates, market growth, coaching packages and gas-hub operations.
A key goal of the partnership is to collaborate on greatest practices for the operations of pure fuel buying and selling specializing in enhancing the technical, operational and regulatory capabilities.
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Insights from the Indian and European fuel markets shall be utilised and worldwide greatest observe shall be shared, facilitating the creation of a liquid and clear fuel market.
IGX and CEGH additionally plan to discover the event of buying and selling platforms for rising inexperienced gases like hydrogen, biomethane (together with inexperienced fuel certificates). Each events can even work collectively to help fuel hub operations in India, he mentioned.
“This partnership will allow us to co-develop modern options for pure fuel and renewable fuel buying and selling, strengthen market effectivity and improve vitality safety,” he added.
