Press Releases

[New Delhi, February 15, 2005]

GAIL signs MoU with NCDEX for Natural Gas Spot Trading

• To jointly work in designing the natural gas spot trading market
  
  (Sl. No. ND/CC/05/08)

  GAIL India Limited and NCDEX (a national level online multi commodity exchange recognized by the Government of India under the provisions of the Forward Contracts (Regulation) Act, 1952), today signed a Memorandum of Understanding (MoU) to work jointly for developing a spot market for natural gas. The MoU was signed by Dr. U.D Choubey, Director, Marketing and Mr. P.H Ravi Kumar, CEO and Managing Director, NCDEX on the sidelines of the 3rd Asia Gas Buyers Summit being held in New Delhi. With this MoU, the online trading platform of NCDEX will be available to the users of GAIL, thus enabling them to trade in spot contracts of natural gas. Both GAIL and NCDEX have agreed to jointly educate the various stakeholders about the natural gas platform.

  As part of this MoU, GAIL and NCDEX have agreed to form a core team for Designing the natural gas spot trading contract / market, Assessment of risk and formulation of tools for hedging the risk and develop Mechanism of physical clearing and settlement of natural gas disputes. The core team shall work amongst themselves and with the users to promote natural gas trading.

  It was also agreed between the companies that the work would be completed within 60 days of the execution of MOU. The parties further agreed that they shall make all endeavors to commence trading in natural gas spot market within one month from the date of conclusion of work.