Indian Gas Exchange (IGX) spot trading volumes experienced a dramatic surge in May, jumping 130.39% year-on-year to 10.75 million MMBtu (271.12 MMSCM), according to reports from The Financial Express. The exchange also recorded a 26.01% month-on-month increase, highlighting the growing role of market-based gas procurement in meeting peak energy demand. This represents one of the strongest trading levels on record for the exchange, driven primarily by intense summer heatwave conditions forcing high gas-fired power generation across the country. The surge was largely driven by higher fuel requirements from the power sector as temperatures climbed across several parts of the country, boosting demand for gas-based generation and spot gas procurement.
The surge in trading volumes was accompanied by significant price increases, with IGX's benchmark index GIXI climbing to ₹1,768 per MMBtu ($18.49/MMBtu) in May, representing a 12.11% increase from April and a steep 73.91% year-on-year rise, as reported by The Financial Express. Regional benchmarks also reflected this broader price trend, with GIXI-West standing at ₹1,775 per MMBtu ($18.57/MMBtu) and GIXI-Dahej rising 15.83% month-on-month to ₹1,763 per MMBtu ($18.4/MMBtu). The strong demand was accompanied by a sharp rise in gas prices, reflecting tighter market conditions and increased consumption during the peak summer period.
Of the total traded volume, approximately 40.10% comprised domestic HPHT gas sold at the government-notified ceiling price and purchased by city gas distribution companies for domestic PNG and transport CNG demand, according to The Financial Express. The remaining 59.90% consisted of free-market gas. The exchange recorded physical deliveries of 9.76 million MMBtu, equivalent to approximately 7.94 MMSCMD, demonstrating growing acceptance of exchange-traded gas as a procurement route for consumers. Domestic gas producers also increased participation, with nearly 17.96 MMSCM of gas with pricing freedom traded through the exchange from sources including Bokaro CBM, Jaya, Suvali and Hazira-ONGC, indicating increasing liquidity in domestically produced gas.
The month saw significant market expansion with Trafigura India Private Limited joining as a proprietary member, bringing the total number of registered members on IGX to 55, as reported by The Financial Express. IGX currently facilitates trading across 18 delivery points, including six LNG terminals, nine domestic gas field landfall points and three pipeline interconnections. Regional benchmark dynamics showed GIXI-East trading at a 16.93% discount to the all-India benchmark, while GIXI-Dahej remained 10.86% below the settled WIM-Ex Dahej price for May, indicating that exchange-traded gas continues to offer competitive alternatives to some LNG-linked supplies. Despite the increase, GIXI-Dahej remained 10.86% below the settled WIM-Ex Dahej price for May, underscoring how exchange-traded gas continues to offer competitive alternatives to some LNG-linked supplies.
