The Indian Gas Exchange (IGX) has started discovering gas pricing for India that will help create a benchmark index for the Indian gas market. According to IGX, one of the main objectives of the exchange was to set a benchmark index for gas prices in India, and to that extent they have started discovering the pricing that will help buyers to compare various gas prices, imported versus the IGX prices on the exchange before taking a final decision.
After starting with a very small quantity of 1,500 metric million British thermal unit (mmBtu) in December 2020, trading on the platform gained momentum and now the volume on average is around 100,000 mmBtu of gas every month. Further, without the interruption caused by the second wave of the Covid-19 pandemic, the volumes would have been double the current trade.
IGX was launched on June 15, 2020, and received final regulatory approval to trade as an exchange in December 2020. Till date, IGX has traded around 546,100 mmBtu of gas through spot and long-term contracts. Some of the major contributing industries have been glass, power, city gas distribution, textile and resellers.