IGX trades 8% lower volumes in June due to lower demand from power sector

New Delhi: Indian Gas Exchange (IGX) traded 8 percent lower volumes in June as early rains led to a drop in demand from the power sector.

In a statement, IGX said it traded 4 million mmBtu, 8 percent lower year-on-year and 14 percent month-on-month.

However, the first quarter of the current fiscal - April-June - recorded a 109 percent year-on-year growth in volume at 24.5 million mmBtu.

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Another milestone achieved was the first trade in a six-month Long Duration Contract.

"On June 25, due to lower demand from the power sector, IGX traded gas volume of 4 million MMBtu (101 million standard cubic meters), lower by 8 percent YoY," it said.

Gas prices -- GIXI for June 2025 -- were Rs 989 or USD 11.5 per mmBtu, down by 7 percent YoY and 3 percent month-on-month, due to lower gas demand, especially from the power sector. This is despite international prices rising due to the Iran-Israel war.

European and Asian spot gas benchmarks were higher at USD 12.4 to USD 14 per mmBtu.

Around 78 percent of traded volumes were free market gas and 22 percent domestic high-pressure, high-temperature (HPHT) gas at the ceiling price (of USD 10.04 per mmBtu). Around 10.7 MMSCM domestic gas having pricing freedom traded at Bokaro (CBM), KG Basin & ONGC Hazira delivery points.

"A total of 130 trades were executed in June. The most active delivery point for free market gas was Dahej and Mallavaram for ceiling price gas. Other active delivery points were - Jaya, Mhaskal, KG Basin, Bokaro, Bhadbhut and Hazira," the exchange said.

During the month, 46 trades were executed daily, followed by 38 trades monthly, 18 trades in day-ahead, 16 trades in fortnightly, 10 trades in weekly and 2 trades in 6-month LDC contracts, respectively.

Exchange-traded deliveries were 6 million mmBtu (around 5 million standard cubic meters per day) during the month.

IGX currently offers trades at 21 delivery points. Out of which, 6 are LNG terminals, 12 are domestic gas field landfall points and 3 are pipeline interconnection points and offers delivery-based trade in seven different spot contracts, such as Intraday, Day-Ahead, Daily, Weekday, Weekly, Fortnightly and Monthly (up to 12 months), and two Long Duration Contracts - 3 Months and 6 Months linked to benchmarks.

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