Indian Gas Exchange–Gas Market Update, June 2023

The Indian Gas Exchange (IGX) traded 1,622,100 metric million british thermal unit (MMBtu) gas volume in June 2023, with 39 per cent year-on-year (YoY) decline from 2,644,800 MMBtu traded in June 2022. The volumes increased by 91 per cent month-on-month (MoM) basis due to increase in spot buying interest from the buyers amid correction in gas prices globally.
Total of 47 trades were executed during the month. The maximum number of trades executed in monthly contracts was 15, followed by daily and weekly contracts of 12 and 11 trades respectively.
The most active delivery point for free market gas was Dahej and domestic ceiling price gas was traded at Gadimoga. Other trading delivery points were- Mhaskal, Hazira, Suvali, and Ankot.
During the month, the Exchange traded gas flows were 1,314,200 MMBtu (~1.1 MMSCMD).
Gas Index of India (GIXI) for June 2023 was Rs 879 per $10.6 per MMBtu, lower by 7 per cent last month. Different spot gas benchmark prices recorded were: Henry Hub at ~$2.4 per MMBtu, Title Transfer Facility at ~$10 per MMBtu, whereas liquified natural gas (LNG) benchmark indices were: West India Marker ~$11.5 per MMBtu.
IGX traded a total of 666,500 MMBtu domestic ceiling price gas at below ceiling price at Rs 860 (volume weighted average price) during the month, complying with Ministry of Petroleum and Natural Gas notification dated January 13, .2023. Priority sector allocation in Ceiling Price gas were, city gas distribution (CGD) (CNG + PNG) – 6 per cent and others (CGD (I&C), Marketers) – 94 per cent.
During the month, IGX was recognized for “Excellence in Digitization (oil and gas) Award” at The Economic Times Energy Leadership Awards 2023.
IGX currently offers delivery-based trade in six different contracts such as 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, Bhadhbhut, Dabhol, KG Basin, Gadimoga, Suvali. It covers six regional gas hubs, namely, Western Hub, Southern Hub, Eastern Hub, Central Hub, Northern Hub, and North Eastern Hub across India.

Note: The delivered volumes price excludes domestic ceiling price gas traded at ceiling price.