IGX Reports 8% Decrease in Trading Volumes Due to Lower Power Sector Demand in June 2023

In June, the Indian Gas Exchange (IGX) experienced an 8% decline in trading volumes, attributed to early rains reducing power sector demand. IGX reported trading 4 million mmBtu, marking an 8% year-on-year and 14% month-on-month decrease. Despite this, the first fiscal quarter saw a significant 109% year-on-year increase, reaching 24.5 million mmBtu.

Gas prices for June 2025 were Rs 989 or USD 11.5 per mmBtu, reflecting a 7% year-on-year and 3% month-on-month drop. This decline occurred despite rising international prices due to the Iran-Israel conflict. European and Asian spot gas benchmarks ranged from USD 12.4 to USD 14 per mmBtu.

Trading Dynamics and Delivery Points

In June, IGX executed a total of 130 trades. The most active delivery points for free market gas were Dahej and Mallavaram for ceiling price gas. Other notable delivery points included Jaya, Mhaskal, KG Basin, Bokaro, Bhadbhut, and Hazira.

Of the traded volumes, approximately 78% were free market gas while 22% comprised domestic high-pressure, high-temperature (HPHT) gas at a ceiling price of USD 10.04 per mmBtu. Additionally, around 10.7 MMSCM of domestic gas with pricing freedom was traded at Bokaro CBM, KG Basin, and ONGC Hazira delivery points.

Contract Types and Trading Patterns

IGX offers trades at 21 delivery points, including six LNG terminals, twelve domestic gas field landfall points, and three pipeline interconnection points. It provides delivery-based trade in seven spot contracts: Intraday, Day-Ahead, Daily, Weekday, Weekly, Fortnightly, and Monthly up to twelve months. Additionally, two Long Duration Contracts (LDCs) of three and six months are available.

The exchange saw varied trading patterns in June with daily trades averaging at 46. Monthly trades followed with 38 transactions. Day-ahead trades accounted for 18 transactions while fortnightly trades had 16. Weekly trades numbered ten and two trades were executed in six-month LDC contracts.

Exchange-traded deliveries amounted to approximately six million mmBtu or around five million standard cubic meters per day during June. This diverse trading activity highlights the flexibility and range of options available to participants on the IGX platform.

A significant milestone was achieved with the first trade in a six-month Long Duration Contract on June 25. This occurred amidst reduced demand from the power sector which impacted overall trading volumes for the month.

With inputs from PTI