IGX Launches Long-Duration Gas Supply Contracts

The Indian Gas Exchange (IGX) unveiled long-duration gas supply contracts of 3-6 months, enhancing flexibility for market participants in India. The contracts, launching February 3, allow pricing linked to international benchmarks. This initiative aims at effective commodity and price risk management, signaling a significant advancement in India's gas sector.

The Indian Gas Exchange (IGX) has introduced long-duration gas supply contracts ranging from three to six months, after securing approval from the Petroleum and Natural Gas Regulatory Board (PNGRB). These contracts will be available for trading on the IGX platform starting February 3, 2023.

The existing platform allows gas suppliers to engage in trades spanning daily to monthly durations, including intra-day trading at a fixed rate. Now, IGX is expanding its offerings to include delivery contracts indexed to major gas benchmarks like FIXI, Platts JKM, WIM, and Dated Brent.

This strategic expansion seeks to provide greater flexibility and options for market participants in India, with pricing choices linked to the Gas Price Index (GIXI) and international benchmarks. IGX aims to manage commodity and price risks more effectively, fostering market liquidity and growth in India's gas market.

(With inputs from agencies.)