The Indian Gas Exchange (IGX) successfully executed its first long duration contract (LDC), marking a significant milestone in India’s natural gas market. The landmark deal covers a three-month delivery period from May to July 2025, and was finalized at the Hazira ONGC delivery point, with pricing indexed to the Platts West India Marker (WIM).
Strengthening India’s Gas Trading Ecosystem
The inaugural LDC underscores IGX’s efforts to build a transparent, efficient, and flexible trading ecosystem. It also aligns with broader energy market reforms and India’s evolving energy landscape.
The development comes after the Petroleum and Natural Gas Regulatory Board (PNGRB) approved the launch of long-duration contracts earlier this year.
Contracts Designed for Flexibility and Choice
IGX offers LDCs with durations ranging from three to six months, providing greater flexibility to market participants. Buyers can choose from multiple indexation options, including IGX’s own Gas Price Index (GIXI) and global benchmarks from Platts, such as:
- Platts West India Marker (WIM)
- Platts Japan Korea Marker (JKM)
- Platts Dated Brent
IGX Leadership Highlights Market Advancement
Rajesh Mediratta, MD and CEO, IGX stated, “The conclusion of our first LDC marks a key milestone for IGX and the Indian gas market. It enhances flexibility, price discovery, and risk management for participants. The commencement of LDC is a strategic step toward deepening the gas market and, through competition and transparency, aims to increase the share of gas to 15% in India’s energy basket.”
He emphasized that IGX’s collaboration with S&P Global Commodity Insights brings together global expertise and domestic leadership. This partnership is creating robust price hedging solutions for the Indian market.
Platts Benchmarks Gain Further Ground in India
Vera Blei, Head of Market Reporting and Trading Solutions at S&P Global Commodity Insights, highlighted, “IGX’s use of Platts WIM reflects the confidence of market participants in Platts’ benchmarks. This is a pivotal moment for India’s gas market, as it links domestic gas prices to international LNG price indicators”.
Platts WIM was launched in January 2010. It serves as the daily benchmark for spot LNG cargoes delivered ex-ship into ports across India and the Middle East. Indian LNG, gas, and power supply contracts widely use it.
Empowering Buyers and Advancing Market Maturity
By launching LDCs, IGX empowers buyers to manage commodity exposure and price risks more effectively. As reported by thehindubusinessline.com, the contracts offer competitive, transparent, and efficient trading solutions. They contribute to the maturity and dynamism of India’s natural gas market.
