Gas IndeX of India shows stability in November amid rising international gas prices

Regional GIXI benchmarks also remained stable, with GIXI-West at Rs 1,106 ($13.1), GIXI-South at Rs 1,048 ($12.4), and GIXI-East at Rs 1,028 ($12.2) per MMBtu.

In contrast, international spot gas benchmarks witnessed a notable uptick. Henry Hub prices rose 15% month-on-month (MoM) to ~$3/MMBtu, TTF increased by 7% to $13.8/MMBtu, and the LNG benchmark index WIM – Ex Dahej climbed 6% to ~$15.2/MMBtu. The surge is attributed to heightened global demand amid the onset of winter.

Lower volumes amid rising prices

The Indian Gas Exchange (IGX) traded 2.5 million MMBtu (63 MMSCM) of gas in November, reflecting a 12% year-on-year decline. The rise in domestic and international gas prices led end-users, including refineries, to opt for alternative fuels, impacting trade volumes.

A total of 131 trades were executed, with Mhaskal and Mallavaram serving as the most active delivery points for ceiling-price gas. Other key trading locations included Dahej, KG Basin, Bokaro, Jaya, and Ankot. Dahej accounted for 32% of the total traded volume, with GIXI-Dahej prices holding steady at Rs 1,106 ($13.1) per MMBtu MoM. The WIM-Ex Dahej price for November settled at $13.9/MMBtu.

Free market gas dominates

Approximately 84% of the traded volume was in the free market segment, while domestic gas accounted for the remaining 16%. Of the latter, 0.27 million MMBtu of high-pressure, high-temperature (HPHT) gas was traded at the ceiling price of Rs 857 ($10.16) per MMBtu. Additionally, 0.13 million MMBtu of domestic gas with pricing freedom was traded at Bokaro and KG Basin delivery points.

The exchange recorded gas deliveries of 3.6 million MMBtu (~3 MMSCMD) during the month.

Increased membership and diverse trade options

Nayara Energy Limited joined IGX as a Proprietary Member in November. IGX now offers trades across 15 delivery points, including LNG terminals, pipeline interconnection points, and domestic gas field landfall points. Contracts are available for Day-Ahead, Daily, Weekday, Weekly, Fortnightly, and Monthly durations, allowing execution for 12 consecutive months.

Monthly contracts led the activity with 61 trades, followed by Fortnightly (30 trades), Weekly (18), Daily (17), and Day-Ahead (5).

The exchange’s efforts to provide diverse trading options and stable pricing continue to bolster its position in the domestic gas market.

Established in 2020, the Indian Gas Exchange Limited (IGX) is India’s first automated national-level Gas Exchange for physical delivery of natural gas.