Gas Market Update, June 2024

Mumbai, Wednesday, 03rd July 2024: The Indian Gas Exchange (IGX) traded 4.36 million MMBtu (~110 MMSCM) gas volume in June’24, higher by 169% on a YoY basis and lower by 11% MoM. Trade volumes were high mainly due to an increase in gas demand from gas-based power plants amid hot weather.

A total of 79 trades were executed in June’24. During the month, 36 trades (maximum number) were executed in Monthly contracts, followed by 24 trades in Fortnightly contracts, 17 trades in Weekly contracts & 2 trades in Daily contracts respectively. The quarter saw 249 trades.

The most active delivery point for free market gas was Dahej & Gadimoga for Ceiling Price gas, other trading delivery points were KG Basin, Hazira, Ankot, Suvali & Mhaskal.

During the month, the Exchange traded gas deliveries were 6.35 million MMBtu (~5.3 MMSCMD).

GIXI (Gas Index of India) for June 2024 was Rs 1,068/$12.8 per MMBtu, higher by 25% last month. GIXI-South was Rs. 973/$11.6 per MMBtu and GIXI-West Rs 1,068/$12.8 per MMBtu. Different spot international gas benchmark prices recorded were: HH at ~$2.8/MMBtu (up by 17% MoM), TTF at ~$11 /MMBtu (up by 9% MoM), whereas LNG benchmark indices were: WIM at ~12 $/MMBtu (up by 11% MoM).

The total Domestic ceiling price category gas traded during the month was 0.42 million MMBtu at ceiling price (₹824/MMBtu) at KG Basin & Gadimoga delivery points.

Q1FY25 Key Highlights:

•  Total Trade Volume:11.7 million MMBtu (Increased by 35% QoQ & 176% YoY)
•  Domestic Ceiling Price Gas Trade Volume: 2.7 Million MMBtu
•  Total number of trades executed: 249
•  Most Active Delivery Point: Dahej
•  Most Active Contract: Monthly

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, and Suvali. It covers six regional gas hubs, namely, Western Hub, Southern Hub, Eastern Hub, Central Hub, Northern Hub, and North Eastern Hub across India.