Surge in Trade Volumes at the Indian Gas Exchange Amid Global LNG Price Hikes
In October, the Indian Gas Exchange witnessed a sharp increase in gas trade volumes, almost tripling from the previous month. Factors contributing to this rise include reduced city gas allocations and soaring LNG prices globally, leading to 124 trades, primarily from Dahej delivery point.
- Country:
- India
October marked a significant milestone for the Indian Gas Exchange (IGX) as it recorded a substantial increase in gas trade volumes, surging to 8 million MMBtu, nearly triple from September figures. A primary factor attributed to this growth was the decrease in administered city gas allocations coupled with heightened global LNG prices.
The Gas Index of India (GIXI) displayed a downward trend, with the October index at Rs 1,098 per million British thermal unit (MMBtu), reflecting a 4% drop from last month. Notably, the majority of trades occurred at the Dahej delivery point, which accounted for 72% of the total trading volume.
IGX operates across 15 delivery points, facilitating trades through varied contract durations, including day-ahead and monthly options. The month saw a total of 124 trades executed, with a diverse range of gas categories being exchanged, further enhancing the market's dynamism and responsiveness to global pricing movements.
(With inputs from agencies.)