Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (June 2020)
27 slides from Indian Energy Exchange's investor presentation, Jun 15, 2020
Slide 1: Filing cover letter: Launch Presentation on Indian Gas Exchange
Dated: June 15, 2020 The Manager The Manager BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot no C/1 Dalal Street G Block, Bandra Kurla Complex Mumbai- 400001 Bandra (E), Mumbai-400 051 Scr
Slide 2: Indian Gas Exchange launch: India's first online gas trading platform
Indian Gas Exchange (an IEX company) Welcomes you to the launch of India’s first online gas trading platform June 2020
Slide 3: In this presentation
About IEX Indian Gas Market Overview IGX: Introduction and Value Offerings In this IGX: Market Model and Operational Framework presentation Way Forward Appendix 1
Slide 4: About IEX
About IEX: IEX is operating Electricity Exchange successfully for last 11 years ✓ Market Share: 97% ✓ Facilitates trades for 40% of Short-term Market ✓ Average daily trade: 6000 MW+ ✓ High Participation: 4000+ (Electricity Market) ✓ Record Daily Volume : 308 MUs (12,900MW) 4000+ Industries I 55 Disc
Slide 5: In this presentation
About IEX Indian Gas Market Overview IGX: Introduction and Value Offerings In this IGX: Market Model and Operational Framework presentation Way Forward Appendix 3
Slide 6: Indian Gas Market: Moving towards gas based economy
Indian Gas Market: Moving towards gas based economy (6% to 15% share) Natural gas consumption (MMSCMD) 60 27% 30% Consumption (MMSCMD) 50 19% 20% 166 49 14% 6.2% Sector's share mmscmd 40 13% 29 30 31 31 7% 10% 20 21 20 16 15 15 15 Total gas 18 18 19 10 10 Share of gas in Indian consumption in India
Slide 7: Natural gas infrastructure in India is witnessing significant investments in pipelines & LNG import terminals
Natural gas infrastructure in India is witnessing significant investments in pipelines & LNG import terminals Significant natural gas pipeline expansions planned by A number of LNG import facilities planned to meet various entities expected future demand Current terminals Future terminals RGPPL (GAI
Slide 8: Demand estimation: Sector wise demand built-up
Demand estimation: Sector wise demand built-up …Through bottom-up estimation of Sector-wise gas demand built-up… industry growth drivers 400 380 • Fertilizers – 10% import substitution by new capacity by 2030 – Agricultural growth rate to remain ~2-3% 86 300 • CGDs 261 – New CGDs to be operational f
Slide 9: Significant pain points exist in the current market
Significant pain points exist in the current market which restrict the country to realize its full potential No Transparency No Flexibility No Direct access in pricing of gas due to bundled contracts, for market players to procure gas on to buyers to buy gas directly from the market, No visibility t
Slide 10: In this presentation
About IEX Global and Indian Gas Market Overview IGX: Introduction and Value Offerings In this IGX: Market Model and Operational Framework presentation Way Forward Appendix 8
Slide 11: Indian Gas Exchange (IGX)
Indian Gas Exchange (IGX) OUR VISION To lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access. 1st natural gas Automated 01 trading exchange 02 platform with cutting edge technology Efficient & transparent 03 market driven pr
Slide 12: Indian Gas Exchange (IGX) is backed by IEX, the leading power exchange in India
Indian Gas Exchange (IGX) is backed by IEX, the leading power exchange in India 10+ years Superior exchange Strong connect across of successful technology, sourced market participants, operations of a power from a leading global specially industries trading platform player Robust market model Financ
Slide 13: Led by an able management team
Led by an able management team Rajiv Srivastava, Director Rajesh Mediratta, Director Vineet Harlalka, Director Rajiv is also the MD and CEO of our Rajesh is also the Director of Strategy Vineet is also serving as the Chief parent company, Indian Energy of our parent Company, IEX. Financial Officer,
Slide 14: In this presentation
About IEX Global and Indian Gas Market Overview IGX: Introduction and Value Offerings In this IGX: Market Model and Operational Framework presentation Way Forward Appendix 12
Slide 15: Market Model: Physical Trading hubs
Market Model: Physical Trading hubs Physical Core Strategy Trading Hubs I: Market (Delivery Participants points) • Transmission Pricing is route based, therefore multiple physical hubs. • Can move to Virtual hubs, if we adopt Unified Tariff or Entry-Exit pricing Planned Hub Delivery point launch dat
Slide 16: Market Model: Trading products and timetable
Market Model: Trading products and timetable Exchange Trading window Trading hours (IST) Tenor Trading window (E) products (S) Day-ahead * 10:00 – 12:00 1 Gas Day D-1 business days D-1 business days Daily 10:00 – 12:00 1 Gas Day D-9 business days D-2 business days Weekly 10:00 – 12:00 7 Gas Days D-5
Slide 17: IGX Governance Structure
IGX Governance Structure Members/clients Market Rules: Bye-laws: Govern the day to day contain the essential rules for the operations of IGX, rules of organization of IGX, the tasks of its trading, the relationship committees/bodies as well as the between IGX and its preconditions for access to trad
Slide 18: Market Model: Delivery types
Market Model: Delivery types 3 3 Contract types by type of delivery Ex-hub transactions Delivered transactions • Transmission capacity booking to be handled • Transmission capacity booking to be handled 1 Features by IGX by the Buyer (as Shipper). • The bidder should have a valid GTA and/or CT • Bid
Slide 19: Market Model: Salient Features
Market Model: Salient Features I Salient Corefeatures Strategy I: Market Participants Physical All trades for firm delivery. Non-transferable. Automated Platform Facilitates - Trading, Delivery and financial settlement Sellers- to put bid for sale of gas at delivery point (post re-gas) Entities Buye
Slide 20: Market Model: Auction types and typical trade flow
Market Model: Auction types and typical trade flow I Type(s) Coreof Strategy auction-I: price Marketdiscovery Participants Uniform price double sided closed Single sided auction auction • Orders not disclosed to market participants. • Either Buyer or Seller can initiate an auction based on their own
Slide 21: Closed-double sided auction mechanism
Closed-double sided auction mechanism BUY Buyer Buyer Welfare BUY SELL SELL Seller Selection Selection Seller Welfare A 100 MMBTU @ Rs 530 E 100 MMBTU @ Rs 350 A 100 MMBTU @ Rs 530 100 =(530-430)*100=10,000 E 100 MMBTU @ Rs 350 100 =(430-350)*100 =8,000 B 300 MMBTU @ Rs 450 F 200 MMBTU @ Rs 370 B 30
Slide 22: IGX Updates
IGX Updates • Market Advisory Committee (MAC) formed and meetings held on 20th Feb & 30th May. • MAC is represented by participants across Industry such as GAIL, BPCL, Shell, PLL, PIL, H-Energy, GSPCL, MGL, IGL, Torrent Gas, Adani Gas, NFL, NTPC, Reliance Industries, Saint Gobain etc. • Market Rules
Slide 23: In this presentation
About IEX Indian Gas Market Overview IGX: Introduction and Value Offerings In this IGX: Market Model and Operational Framework presentation Way Forward Appendix 21
Slide 24: IGX would provide value to the customers and serve the nations interest
IGX would provide value to the customers and serve the nations interest Increased investments in Optimal utilization of Increased industrial E&P sector infrastructure growth • IGX would provide price • IGX would also meet the • Even small industries can signals to the market, latent demand, thus use
Slide 25: Government and regulator have taken significant strides in identifying key enablers
Government and regulator have taken …in identifying & realizing key enablers significant strides… that are required for market development MoPNG aims to operationalize trading Independent System operator hub/exchange.. Independent (For coordination, system operator scheduling, energy accounting etc.
Slide 26: Way Forward
Way Forward Expand coverage and market 1 • Add new hubs • Launch new products (LNG, FO, LSHS etc.) Best in class, futuristic technology Infrastructure 2 • Technology & analytics solutions for customers • Enhancements to the trading platform Strengthen the organisation 3 • Capacity building, hi-perfo
Slide 27: Thank you
Thank you For any clarifications or suggestions please write to: info@igxindia.com Disclaimer June 2020 The contents covered under the presentation are subject to change without any prior intimation. For more details please visit our website www.igxindia.com from time to time.
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