IGX sees 123 per cent monthly growth in trading volumes in April amid lower LNG prices

New Delhi: The Indian Gas Exchange (IGX) recorded a 123 per cent month-on-month increase in gas trading volumes for April 2024, totaling 2.47 million mmbtu (~62 mmscm), which also marked a 38 per cent increase on a year-on-year basis.

This surge in trading activity was largely due to price corrections in the international market and the lower price of imported LNG compared to the domestic HPHT/Ceiling gas price.

In April, IGX executed a total of 74 trades. The daily contracts saw the highest activity with 22 trades, followed by fortnightly contracts at 19 trades and monthly contracts at 18 trades. The key delivery points for these trades were Hazira and Gadimoga for ceiling price gas, alongside other points such as Dahej, KG Basin, Ankot, Suvali, Mhaskal, and Bhadbhut.

Gas deliveries traded on the Exchange in April were noted at 2.91 million mmbtu (~2.5 mmscmd).

The Gas Index of India (GIXI) for April 2024 was reported at Rs 754/$9 per mmbtu, showing a decrease of 6 per cent from the previous month. Region-specific, GIXI-South was at Rs. 753/$9 per mmbtu and GIXI-West at Rs 754/$9 per mmbtu. Different spot gas benchmarks during the month included HH at approximately $1.6/mmbtu, TTF at about $9.2/mmbtu, and LNG benchmarks like WIM at around $9.7/mmbtu.

The total domestic ceiling price category gas traded during the month was 2.08 million mmbtu at an average price below the ceiling of ₹793/mmbtu, mainly at Gadimoga and KG Basin delivery points.

IGX currently offers six types of delivery-based trade contracts, including day-ahead, daily, weekday, weekly, fortnightly, and monthly, for trading across six consecutive months at multiple delivery points covering six regional gas hubs in India.