IGX Pioneers Long-term Gas Contracts & Green Trading Initiatives

The Indian Gas Exchange (IGX) is seeking regulatory approval to launch 3-6 month gas contracts benchmarked to international prices. It plans to introduce green certificates and has partnered with Austria's Central Europeans Gas Hub to enhance gas trading, focusing on natural and renewable gases.

The Indian Gas Exchange (IGX) is taking strides toward transforming its offerings by seeking regulatory permission to initiate long-term gas contracts tied to global price benchmarks. These 3-6 month terms aim to diversify trading scenarios for suppliers who currently operate on shorter durations, such as daily or monthly contracts.

With the Petroleum and Natural Gas Regulatory Board (PNGRB) yet to give its nod, IGX aims to implement fortnightly payment cycles for these longer contracts, as opposed to the current 2-3 day payment structure. This move aligns with IGX's strategy to cement its position in the burgeoning gas market by also introducing green certificates to promote sustainable gas usage.

Further broadening its horizons, IGX has forged a partnership with Austria's Central Europeans Gas Hub. This collaboration seeks to capitalize on both Indian and European market strengths, targeting the trading of various gases including hydrogen and biomethane. The partnership will focus on developing technically sound, regulation-savvy trading operations that ensure market transparency and efficiency.

(With inputs from agencies.)