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India's Gas Market to Get Futures Boost
8 Jan
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.
