What is the Indian Gas Exchange?

The Indian Gas Exchange (IGX) is India's authorized platform for natural gas trading, focused on spot trading and price discovery.

Why is India launching a natural gas futures contract?

The contract aims to provide a risk management tool, increase price transparency, and support India's goal to boost natural gas in its energy mix.

Who will benefit from the NSE and IGX futures contract?

Stakeholders like gas producers, distributors, power generators, and industrial consumers will benefit from hedging against price volatility.

Home / Business and Economy / India's Gas Market to Get Futures Boost

India's Gas Market to Get Futures Boost

8 Jan

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Summary

India's National Stock Exchange and Indian Gas Exchange partner on futures contract.
The contract aims to offer transparent risk management for gas market participants.
This initiative supports India's goal to increase natural gas in its energy mix.

India's National Stock Exchange (NSE) and the Indian Gas Exchange (IGX) have announced plans to develop and launch the country's inaugural domestic natural gas futures contract. This collaboration seeks to equip market players with a transparent tool for managing risks, complementing India's developing natural gas pricing structure.

The proposed futures contract will leverage NSE's extensive experience in derivatives trading alongside IGX's established leadership in spot gas trading and price discovery. This initiative is poised to assist a diverse group of stakeholders, including producers, city gas distributors, power generators, and industrial consumers, in effectively hedging against unpredictable price fluctuations.

This partnership underscores India's commitment to increasing natural gas consumption and fostering market-driven pricing mechanisms. The development is contingent on regulatory approvals, with NSE currently recognized as the world's largest derivatives exchange by trading volume.