Indian Natural Gas

(Hedge with NSE Indian Natural Gas Futures: India's first energy derivatives contract referenced to a domestic benchmark- IGX (GIXI- Dahej)- Hedging at NSE offers key advantages like INR-denominated contracts, cash settlement, transparent pricing, and low transaction costs )

Indian Natural Gas

Natural gas meets roughly half of India's incremental energy demand growth, with the Government of India targeting an increase in gas's share of the primary energy mix from 6.3% to 15% by 2030. While India's existing natural gas derivatives are referenced to the US NYMEX Henry Hub benchmark, Indian Natural Gas Futures are referenced to the IGX GIXI (Dahej); a price discovered through actual physical gas trades on India's own authorised gas exchange, IGX.

This distinction matters because India's domestic gas price is driven by a different set of fundamentals such as: LNG import costs (JKM/Brent-linked), West Asia supply dynamics, and domestic pipeline availability.

Price affecting factors:

• Domestic gas supply and demand (IGX-traded volumes)
• LNG import costs and JKM/Brent-linked benchmark movements
• Regional geopolitical developments affecting LNG supply (West Asia)
• Domestic pipeline availability and city gas distribution demand

(The natural gas supply chain covers stages from exploration and liquefaction to shipping, regasification, transmission, storage, and distribution. NSE’s Natural Gas Futures and Options is a beneficial tool for risk management across this value chain)

NSE Indian Natural Gas Futures Specifications