Gas market push: NSE in talks with IGX to launch Indian natural gas futures; aim to deepen price discovery and hedging

The National Stock Exchange (NSE) is in discussions with the Indian Gas Exchange (IGX) to develop and launch Indian natural gas futures, an initiative aimed at strengthening the country’s natural gas market ecosystem, PTI reported.

The proposed futures contract is expected to provide market participants with a transparent, efficient and robust risk management tool aligned with India’s evolving natural gas pricing framework, the exchange said.

The collaboration seeks to combine NSE’s experience in the derivatives market with IGX’s role in spot natural gas trading, price discovery and physical market development. Once launched, the contract is expected to benefit gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders and financial participants by enabling effective hedging against price volatility and supporting long-term planning.

“The proposed collaboration with IGX marks a significant step in NSE’s efforts to deepen India’s commodity derivatives markets,” said Sriram Krishnan, Chief Business Development Officer of NSE.

According to him, natural gas is emerging as a critical transition fuel in India’s energy mix, and a domestic futures contract would enhance price transparency, strengthen risk management capabilities and help build a credible gas price benchmark aligned with Indian market fundamentals.

“By leveraging NSE’s market infrastructure and IGX’s physical market expertise, we aim to create a futures product that is relevant, liquid and trusted by the entire gas value chain,” Krishnan added.

Subject to regulatory approvals, NSE and IGX will work with stakeholders to ensure a smooth launch of the proposed derivatives contract. Further details on contract design and timelines will be announced in due course, the exchange said.