India's Gas price index rises 25% YoY in Feb 2025

New Delhi: India's Gas IndeX of India (GIXI) for February 2025 stood at Rs 1,112 per MMBtu ($12.8 per MMBtu), marking a 25 percent year-on-year (YoY) increase. The surge was driven primarily by heightened gas demand from Europe, particularly from gas-based power plants. This increase aligns with the upward trend observed in global gas benchmark prices.

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European and East Asian spot international gas benchmark prices reflected significant gains, with the Title Transfer Facility (TTF) price reaching $15.4 per MMBtu, up by 90 percent YoY and 6 percent month-on-month (MoM). Similarly, the West India Marker (WIM) price surged by 65 percent YoY and 5 percent MoM to $16 per MMBtu (ex-Dahej). Regionally, the GIXI-West remained at par with the All-India GIXI, whereas the GIXI-East was 10 percent lower at Rs 1,000 per MMBtu ($11.5 per MMBtu) due to transmission cost differentials. Meanwhile, GIXI-Dahej for February 2025 was recorded at Rs 1,111 per MMBtu ($12.8 per MMBtu), reflecting a 10 percent MoM decline. GIXI-Dahej was at an 18 percent discount ($2 per MMBtu) compared to the WIM-ex-Dahej settled price for February.

In contrast, the US gas price benchmark remained relatively stable, with Henry Hub (HH) prices registering at $3.7 per MMBtu, reflecting a minor 1.5 percent MoM decline.

IGX Sees 27 percent YoY Growth in Traded Volumes

During February, the Indian Gas Exchange (IGX) recorded a total traded volume of 7.8 million MMBtu (196 MMSCM), reflecting a robust 27 percent YoY increase. Of the total traded volume, 42 percent comprised free market gas, while 58 percent was domestic High-Pressure High-Temperature (HPHT) gas, priced at the ceiling rate of Rs 883 per MMBtu ($10.16 per MMBtu). Additionally, 0.13 million MMBtu of gas, with pricing freedom, was traded at the Bokaro (CBM), Jaya, and ONGC Hazira delivery points.

A total of 214 trades were executed in February 2025. Notably, the first trades at the Chhara R-LNG Terminal and the Barmer delivery point in the Northern Regional Hub were successfully completed. The most active delivery points for free market gas included Chhara, while Gadimoga led in sales for Ceiling Price gas, driven by higher output from domestic producers. Other key delivery points included Dahej, KG Basin, Bokaro, Jaya, Mallavaram, Hazira, Ankot, Barmer, Mhaskal, and Suvali. Approximately 48 percent of the free market volume was traded at the Dahej delivery point.

During the month, IGX achieved a record monthly delivery volume for the year, with exchange-traded deliveries totaling 7.5 million MMBtu (~6.8 MMSCMD).

Expansion of IGX Trading Mechanism

Currently, IGX facilitates trades across 17 delivery points, comprising five LNG terminals, nine domestic gas field landfall points, and three pipeline interconnection points. The exchange offers delivery-based trading in seven spot contracts, including Intraday, Day-Ahead, Daily, Weekday, Weekly, Fortnightly, and Monthly. Additionally, IGX provides two long-duration contracts—three months and six months—linked to key benchmarks such as GIXI, JKM®, WIM®, and Dated Brent®.

In February 2025, the highest number of trades (84) were executed under the Daily contract, followed by 51 trades in the Fortnightly contract, 27 trades in the Monthly contract, 24 trades in the Weekly contract, 16 trades in the Day-Ahead contract, and 12 trades in the Weekday contract.

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