The government plans to set up a natural gas trading hub after unbundling GAIL India into two separate entities — a marketing and a pipeline company. The oil ministry is expected to move a cabinet note to split the state-owned firm soon as its marketing and pipeline businesses should be at arms-length and not provide any advantage.
The unbundling process is expected to be completed within this fiscal, officials said. They said the trading hub would be set up after the unbundling which would aid in better price discovery for domestic as well as imported gas with the aim to become a leading hub in Asia, competing with Singapore, Shanghai and Tokyo.
The trading exchange, or the hub, will be on the lines of the existing online platforms that trade in power. Read More