Indian Gas Exchange Sees 50% Growth in Gas Volume in July 2024
The Indian Gas Exchange (IGX) has recorded a significant increase of 50% in its gas volume, reaching 4.1 million Metric Million British Thermal Units (MMBtu) in July 2024. IGX executed a total of 96 trades during the month, with 28 trades in Monthly contracts, 26 in Daily contracts, 19 in Weekly contracts, 16 in Day-Ahead contracts, and 7 in Fortnightly contracts.
The most active delivery points for free market gas were Mhaskal and Gadimoga for Ceiling Price gas. Other trading delivery points included Dahej, KG Basin, Hazira, Suvali, and Bhadbhut. The exchange-traded gas volume stood at 3.5 million MMBtu.
The Gas Index of India (GIXI) for July 2024 was 4% higher at Rs 1,114/USD 13.2 per MMBtu. GIXI-South was Rs 936/USD 11.2 per MMBtu, and GIXI-West was Rs 1,119/USD 13.3 per MMBtu. The total domestic ceiling price category gas traded during the month was 0.6 million MMBtu at a ceiling price of Rs 825/MMBtu at KG Basin and Gadimoga delivery points.
In July, IGX executed its first trade in a small-scale liquefied natural gas (SSLNG) contract in a Daily contract at the Dahej delivery point. Gujarat State Electricity Corporation Limited (GSECL) joined as a new proprietary member. IGX also received approval from PNGRB to add Jaya, Jharia, Kochi, and Chhara as new delivery points.
IGX currently offers delivery-based trade in six different contracts: 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, Bhadbhut, Dabhol, KG Basin, Gadimoga, and Suvali. IGX covers six regional gas hubs: Western Hub, Southern Hub, Eastern Hub, Central Hub, Northern Hub, and North Eastern Hub across India.
Indian Gas Exchange Limited (IGX) was established in 2020. It is India’s first automated national-level Gas Exchange for the physical delivery of natural gas.
Doubts Revealed
Indian Gas Exchange (IGX) -: The Indian Gas Exchange, or IGX, is a place where people buy and sell natural gas in India. It’s like a big market for gas.
50% increase -: This means that the amount of gas traded on the IGX grew by half compared to before. If they traded 100 units before, now they traded 150 units.
MMBtu -: MMBtu stands for Million British Thermal Units. It’s a way to measure energy, like how we use liters to measure water.
trades -: Trades are deals where people agree to buy or sell something. In this case, they are buying and selling gas.
Mhaskal and Gadimoga -: These are places in India where gas is delivered. Think of them like special gas stations.
Gas Index of India (GIXI) -: The Gas Index of India, or GIXI, is a number that shows how much gas costs in India. It’s like a price tag for gas.
Rs 1,114 per MMBtu -: This means that one MMBtu of gas costs 1,114 Indian Rupees. It’s the price you pay for the gas.
small-scale LNG contract -: LNG stands for Liquefied Natural Gas. A small-scale LNG contract is a deal to buy or sell a smaller amount of this special kind of gas.
Gujarat State Electricity Corporation Limited -: This is a company in Gujarat, India, that makes electricity. They joined the IGX to buy gas for making electricity.
regional gas hubs -: These are important places in different parts of India where gas is collected and distributed. They help get gas to where it’s needed.
