Indian Gas Exchange Sees Huge Growth in Gas Trading in October 2024
The Indian Gas Exchange (IGX) reported a significant increase in gas trading for October 2024, with 8 million MMBtu traded, marking a 160% rise from the previous month. This increase was driven by reduced APM gas allocations to the CGD sector and high global LNG prices. A total of 124 trades were executed, with Dahej being the most active delivery point for free-market gas and KG Basin for ceiling-price gas.
Other trading points included Hazira, Suvali, Mhaskal, Ankot, and Bokaro, with Dahej accounting for 72% of the total volume. The GIXI for October was Rs 1,098 or USD 13 per MMBtu, a 4% decrease from the previous month. The GIXI-South index was Rs 986 or USD 11.7 per MMBtu, and GIXI-West was Rs 1,102 or USD 13.1 per MMBtu.
International spot gas prices saw increases, with HH at USD 2.6/MMBtu and TTF at USD 12.9/MMBtu. The LNG benchmark WIM-Ex Dahej was USD 14.3/MMBtu. IGX facilitated 6.1 million MMBtu of gas deliveries, offering trades at 15 delivery points across various contracts. The highest number of trades was in the Daily contract.
IGX, established in 2020, is India’s first automated national-level gas exchange for natural gas delivery.
Doubts Revealed
Indian Gas Exchange (IGX) -: The Indian Gas Exchange, or IGX, is a platform where people can buy and sell natural gas in India. It started in 2020 and helps make trading gas easier and more organized.
MMBtu -: MMBtu stands for Million British Thermal Units. It’s a way to measure energy, especially for natural gas. One MMBtu is a lot of energy, enough to heat a small house for a day.
APM gas allocations -: APM stands for Administered Pricing Mechanism. It’s a system where the government controls the price and distribution of gas. Reduced APM allocations mean less gas is available at controlled prices.
LNG -: LNG stands for Liquefied Natural Gas. It’s natural gas that has been cooled down to liquid form for easy storage and transport. It’s used as a fuel for heating, cooking, and electricity.
Dahej -: Dahej is a place in Gujarat, India. It has a big port where a lot of natural gas is delivered and traded. It’s an important spot for gas trading in India.
GIXI index -: The GIXI index is a measure of gas prices on the Indian Gas Exchange. It helps people understand how much they need to pay for gas. A decrease in the index means gas prices have gone down.