INDIAN GAS EXCHANGE GAS MARKET UPDATE, MAY 2024

The Indian Gas Exchange (IGX) traded 4.92 million MMBtu (~124 MMSCM) gas volume in May’24, higher by 99% MoM & 480% on YoY basis. Trade volumes were high mainly due to an increase in gas demand from gas-based power plants amid hot weather and directives from the government to maximize their output to address the growing demand for electricity.

A total of 96 trades were executed in May’24. During the month, 32 trades (maximum number) were executed in Monthly contracts, followed by 29 trades in Daily contracts and 19 trades in Weekly contracts, other contracts were Fortnightly, Weekday & Day-Ahead.

The most active delivery point for free market gas was Dahej & KG Basin for Ceiling Price gas, other trading delivery points were-  Hazira, Ankot, Suvali & Mhaskal.

During the month, the Exchange traded gas deliveries were 3.47 million MMBtu (~3 MMSCMD).

GIXI (Gas Index of India) for May 2024 was Rs 851/$10.2 per MMBtu, higher by 13% last month. GIXI- South was Rs. 786/$9.4 per MMBtu and GIXI-West Rs 901/$10.8 per MMBtu.  Different spot gas benchmark prices recorded were: HH at ~$2.1/MMBtu, TTF at ~$10 /MMBtu, whereas LNG benchmark indices were: WIM ~11.3 $/MMBtu.

Total Domestic ceiling price category gas traded during the month was 0.20 million MMBtu at  ceiling price (₹823/MMBtu) at KG Basin delivery.

IGX currently offers delivery-based trade in six different contracts such as Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly, under which the trade can be executed for six consecutive months.

The gas trade takes place at multiple delivery points, such as – Dahej, Hazira, Ankot, Mhaskal, Bhadhbhut, Dabhol, KG Basin, Gadimoga, Suvali. It covers six regional gas hubs, namely, Western Hub, Southern Hub, Eastern Hub, Central Hub, Northern Hub, and North Eastern Hub across India.