The Indian Gas Exchange (IGX) is set to introduce new 3-6 month gas contracts benchmarked to international gas prices pending regulatory approvals. This move is aimed at offering more flexibility to gas suppliers on the exchange, allowing them to trade in longer-duration contracts indexed to gas benchmarks such as FIXI, Platts JKM, WIM, and Dated Brent.
In addition to the new contract durations, IGX is also planning to introduce green certificates for trading, aligning with the government’s mandate for city gas sellers to include 1 percent compressed biogas (CBG) in their supplies. This initiative will enable gas retailers to meet their CBG obligation through the purchase of these certificates where they do not have direct CBG supplies.
The volume of gas traded on the exchange has surpassed 1 billion cubic metres in the first nine months of the current fiscal year, indicating significant growth in gas trading activities. Moreover, IGX has partnered with Austria’s Central European Gas Hub to explore trading opportunities for green gases such as hydrogen and methane, aiming to strengthen India’s gas market by leveraging international market expertise.
The Memorandum of Understanding (MoU) between IGX and CEGH focuses on trading natural gas and renewable gases, market development, training programs, and gas-hub operations. The collaboration aims to share best practices and insights from Indian and European gas markets, facilitating the creation of a more liquid and transparent gas market in India.
Overall, these developments signal the growing maturity and sophistication of India’s gas market, with IGX playing a pivotal role in driving innovation and efficiency in gas trading. As the industry continues to evolve, the introduction of new contract durations and the exploration of trading opportunities for green gases will further enhance market dynamics and contribute to the country’s energy security goals.
