IGX updates gas market for August

With over 2,46,900 MMBtu volume delivered in August 2021, IGX recorded the highest number of trades in the month.

The Indian Gas Exchange Ltd (IGX) facilitated trades of 2,90,900 MMBtu in August 2021 at an average price of ₹926/MMBtu ($12.5/MMBtu). The price discovered on the platform was higher than the price discovered in July but lower than the average spot prices in the country which were around ₹1,250/MMBtu ($16.9/MMBtu) for the month. This indicates the competitiveness in price discovery on the platform.

With over 2,46,900 MMBtu volume delivered in August 2021, IGX recorded the highest number of trades in the month i.e., 37. 

A few key achievements during the month include:

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The significant development during the month was MoPNG’s notification dated 19 August ’21 authorising domestic gas producers to sell up to 500 million standard cubic metre or 10 percent of annual production from contract area, whichever is higher, per year through gas exchanges. 

Rajesh K Mediratta, Chief Business Office, IGX expressing his enthusiasm about the development mentioned that “the Government’s notification provides an additional mechanism of sale to the domestic gas producers. With this, the natural gas from the domestic fields availing marketing and pricing freedom will now be able to participate in the sell side on the Exchange. The development brings much needed flexibility and depth in India’s gas market and will help the consumers as well as the gas producers in a significant way.”