 "Monthly natural gas trades down 80% in March: Indian Gas Exchange")
An increasing trend in gas prices and an extended winter, which reduced gas-based power demand, led to over 80 per cent fall in monthly natural gas volumes traded on the Indian Gas Exchange Limited (IGX) to 1.13 metric million British thermal units (mmBtu) in March, the company said on Friday.
Traded volumes were down from 6.13 mmBtu in February, an 81 per cent slump on a sequential basis. IGX is the only national-level gas exchange for the physical delivery of natural gas. The latest figures come as a surprise, given that IGX gave a growth forecast last month. It had said demand would grow in the near term, driven by the expansion of city gas distribution networks and increasing uptake from the power sector.
Rajesh Kumar Mediratta, MD & CEO, Indian Gas Exchange, earlier said a cut in gas prices in February had resulted in demand rising steeply. Consequently, there was an increase in the volume trade from gas-based power plants on IGX during the month. Global freight rates for LNG have stabilised even as carriers continue to avoid the Suez Canal due to piracy threats. However, prices have been on the rise since February.
A total of 65 trades were executed during March, down from 101 in February. The maximum number of trades was executed in the daily contract format, followed by fortnightly and monthly contracts of 15 and 14, respectively.
In FY24, IGX witnessed significant activity with a total trading volume of 41 mmBtu lower by 20 per cent year on year (Y-o-Y) mainly due to a decline in sales by domestic gas producers and its resale by marketers. Domestic Ceiling Price Gas accounted for 23.3 mmBtu, while Free Market Gas trade touched a record 17.5 mmBtu, an increase of 20 per cent Y-o-Y. There were 998 trades executed throughout the year.
Gadimoga emerged as the most preferred delivery point for Domestic Ceiling Price Gas, whereas Dahej dominated Free Market Gas trades. The gas trade takes place at multiple delivery points, such as Dahej, Hazira, Ankot, Mhaskal, Bhadbhut, Dabhol, KG Basin, Gadimoga, and Suvali. It covers six regional gas hubs, namely, Western Hub, Southern Hub, Eastern Hub, Central Hub, Northern Hub, and North Eastern Hub across India.