The National Stock Exchange of India is in discussions with the Indian Gas Exchange to develop and launch an Indian natural gas futures contract, a move aimed at strengthening the domestic gas market and aligning it with the country’s evolving gas pricing framework.

The proposed contract is intended to provide a transparent risk management tool by combining NSE’s expertise in derivatives with IGX’s leadership in spot gas trading and price discovery. It is expected to help natural gas producers, city gas distributors, power and fertiliser companies, as well as other large consumers, hedge against price volatility and improve operational planning.

Sriram Krishnan, Chief Business Development Officer at NSE, said natural gas is emerging as a key transition fuel for India, and a domestic futures contract would enhance price transparency, improve risk management and support the creation of a credible gas price benchmark aligned with Indian market fundamentals. He added that leveraging NSE’s market infrastructure alongside IGX’s physical market expertise would help build a futures product that is relevant, liquid and trusted across the gas value chain.

The proposed collaboration also aligns with India’s broader objective of increasing the share of natural gas in the country’s energy mix. Subject to regulatory approvals, NSE and IGX said they will engage with market participants and other stakeholders to ensure a smooth and effective launch of the futures contract.