+
NSE To Launch India's First Domestic Natural Gas Futures
OIL & GAS

NSE To Launch India's First Domestic Natural Gas Futures

The National Stock Exchange (NSE) will launch Indian Natural Gas futures contracts on 27 July after receiving approval from the Securities and Exchange Board of India (SEBI). The cash?settled contracts will be benchmarked to prices at the Indian Gas Exchange (IGX) Dahej delivery hub and will provide producers, distributors and industrial consumers with a domestic hedging tool instead of relying on international benchmarks.

The trading unit will be 250 mmBtu, with prices quoted in Rs per mmBtu on a gross calorific value basis. Trading sessions will run from 9am to 11:30pm or to 11:55pm when United States daylight saving time is in effect. Monthly contracts will be available, with the first series covering expiries from August 2026 to July 2027 and subsequent monthly introductions extending the available maturity profile to June 2028.

Final settlement will be cash based, with the settlement price set by the monthly weighted average of actual deliveries executed on the Indian Gas Exchange during the contract month. The exchange circular specifies that trades executed at ceiling prices, short?term spot LNG transactions and long?duration contracts will be excluded when calculating the final price. Market participants such as domestic gas producers, city gas distributors, industrial consumers and power companies will gain an onshore instrument to manage price risk, a function many had previously achieved through overseas benchmarks.

The introduction of Indian Natural Gas futures constitutes the first exchange?traded derivative linked to domestic natural gas prices and complements wider efforts to develop market?based price discovery in the sector. Regulators and market operators regard the contract as a step towards deepening the domestic gas ecosystem and enhancing the set of tools available to hedgers and risk managers.

The National Stock Exchange (NSE) will launch Indian Natural Gas futures contracts on 27 July after receiving approval from the Securities and Exchange Board of India (SEBI). The cash?settled contracts will be benchmarked to prices at the Indian Gas Exchange (IGX) Dahej delivery hub and will provide producers, distributors and industrial consumers with a domestic hedging tool instead of relying on international benchmarks. The trading unit will be 250 mmBtu, with prices quoted in Rs per mmBtu on a gross calorific value basis. Trading sessions will run from 9am to 11:30pm or to 11:55pm when United States daylight saving time is in effect. Monthly contracts will be available, with the first series covering expiries from August 2026 to July 2027 and subsequent monthly introductions extending the available maturity profile to June 2028. Final settlement will be cash based, with the settlement price set by the monthly weighted average of actual deliveries executed on the Indian Gas Exchange during the contract month. The exchange circular specifies that trades executed at ceiling prices, short?term spot LNG transactions and long?duration contracts will be excluded when calculating the final price. Market participants such as domestic gas producers, city gas distributors, industrial consumers and power companies will gain an onshore instrument to manage price risk, a function many had previously achieved through overseas benchmarks. The introduction of Indian Natural Gas futures constitutes the first exchange?traded derivative linked to domestic natural gas prices and complements wider efforts to develop market?based price discovery in the sector. Regulators and market operators regard the contract as a step towards deepening the domestic gas ecosystem and enhancing the set of tools available to hedgers and risk managers.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code