The Indian Gas Exchange (IGX) and Hindustan Petroleum Corporation Limited (HPCL) have signed a memorandum of understanding to enhance access to natural gas markets across India. The agreement aims to deepen participation by industrial, commercial and retail buyers through improved market infrastructure and transparent trading mechanisms. Market operators said the pact is intended to accelerate the transition to a gas-based energy mix. The memorandum sets a framework for subsequent operational agreements.

Under the MoU, IGX will work with HPCL to integrate supply and offtake arrangements with exchange trading platforms and to facilitate logistics planning for traded volumes. The collaboration is expected to streamline scheduling, nomination and settlement processes and to reduce barriers for new entrants seeking to procure gas through exchange mechanisms. Industry analysts noted the arrangement could help balance regional supply variations and support meeting demand peaks. Operational details and timelines will be developed jointly to align trading cycles with physical delivery schedules.

Both parties will focus on developing services that enable shorter tenor contracts and trading products tailored to distribution companies, city gas operators and large industrial consumers. The partnership will also explore data sharing, market surveillance and risk management tools to strengthen price discovery and transparency. Regulators and stakeholders are anticipated to monitor implementation to ensure fair access and efficient market functioning. Capacity building and outreach to prospective participants are expected to form part of the implementation work.

The memorandum is presented as a step towards strengthening market liquidity and broadening participation in India's gas markets, which policymakers have identified as crucial for energy security and emissions reduction. The partners plan phased implementation and operational reviews to assess outcomes and refine arrangements. Observers said improved market access may encourage investment in supporting infrastructure and facilitate the wider adoption of natural gas. Stakeholders will watch for impacts on price signals and on the pace of infrastructure development supporting gas distribution.