India launched its first natural gas exchange recently. The Indian Gas Exchange (IGX) is a nationwide, online delivery-based gas trading platform for delivery of natural gas.
A wholly-owned subsidiary of the IEX — India’s energy market platform — IGX will allow participants to trade in standardized gas contracts. The exchange comes with a web interface and is fully automated to provide a seamless trading experience.
The new exchange will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas across three hubs —Dahej and Hazira in Gujarat province, and Kakinada in Andhra Pradesh province in the south of India, the Indian Express reported.
Imported liquified natural gas (LNG) will be regasified and sold to buyers through the exchange, thus removing the need for buyers and sellers to find each other.
