Indian Gas Exchange (IGX) is planning to offer liquefied natural gas (LNG) contracts on its platform, which will benefit buyers in areas that are not connected by pipelines, its CEO Rajesh Mediratta said.
IGX, the country’s only physical delivery-based gas exchange, launched three years ago and currently offers only natural gas contracts. In November, 6.7 mmscmd of gas traded on IGX, a fraction of the 178 mmscmd consumed in the country. About three-fourths of the gas traded on IGX is the locally produced volume that’s subject to a government-set price ceiling. The balance is mostly regasifed LNG.
IGX is now seeking a nod from the Petroleum and Natural Gas Regulatory Board (PNGRB) to launch LNG trading, Mediratta said. It plans to launch this at Dahej, Dabhol, Hazira, and Ennore terminals from where imported LNG can be taken in tankers for distribution to customers in areas that are not connected to the gas pipelines.
About 0.7 mmscmd of LNG is transported by road in India, constituting around 0.4% of the country’s total natural gas consumption, IGX said, adding that it was expected to grow to 5 mmscmd over the next five years.
IGX has 6 regional hubs and multiple delivery points. It offers six contracts, ranging from day-ahead to monthly.
