 "Pipes, LNG pipes, natural gas")
An increasing trend in gas prices and extended winter reducing gas-based power demand led to monthly gas volumes traded on the Indian Gas Exchange Limited (IGX) rising by 480 per cent to 4.92 million metric million British thermal units (mmBtu) in May, the company said on Thursday.
Traded volumes were up 99 per cent on a sequential basis. IGX is the only national-level gas exchange for the physical delivery of natural gas.
The latest figures are attributable to the high temperatures registered across India in May, and directives from the government to maximise their output to address the growing demand for electricity, IGX said. The Central Electricity Authority monitors 62 gas-based power stations, with a total capacity of 23,845 megawatts (MW) using gas as primary fuel.
A total of 96 trades were executed during May, up from 74 in April. The maximum number of trades were executed in the monthly contract format at 32, followed by daily and weekly contracts of 29 and 19 respectively.
Dahej in Gujarat and the Krishna Godavari basin in Andhra Pradesh emerged as the most preferred delivery points for Domestic Ceiling Price Gas.
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The Gas Index of India (GIXI) for May 2024 was Rs 851 or $10.2 per Metric Million British Thermal Unit (MMBtu), higher by 1 per cent from April. Total Domestic Ceiling Price category gas traded during the month was 0.20 million MMBtu at the ceiling price of Rs 823 per MMBtu, at the KG Basin delivery point.
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.
Experts expect the rising incidence of gas trade in India to become a fixture in 2024. "Globally, expect a sharp 192 million tonne capacity addition in LNG export in 2024-2028 versus 400 million tonnes global trade in CY23," a note released by Elara Global Research earlier this week said.
On an annual basis, capacity addition would be 17 million tonnes in 2024, rising to 47 million and 59 million tonnes in the next two years, it added.
