The first natural gas exchange in India is set to launch operations this week, which will allow online trading in the country’s flourishing gas market. The exchange, called the Indian Gas Exchange (IGX), is scheduled to start operation on June 15, it said. The exchange will offer spot and forward contracts at the country’s natural gas hubs of Dahej, Hazira, and Kakinada.
However, IGX faces various challenges, including state-controlled pricing, different taxation across states, falling domestic gas production, growing dependence on LNG imports, and inadequate pipeline infrastructure. Industry players hoped the exchange would help small-scale buyers and domestic coal-bed methane gas producers.
India imported 1.5 million tons of LNG in April, decreasing by 29% from a year earlier, preliminary data showed. Total gas demand fell to 42.87 billion cubic metres in April from 5.19 billion cubic metres in March 5.34 billion cubic metres in April 2019. Gross upstream production declined to 2.16 billion cubic metres in April from 2.66 billion cubic metres in the same month last year.
