 "Indian Gas Exchange")
A significant fall in the global natural gas prices led to the monthly gas volumes traded on the India gas exchange (IGX) rising by 17 per cent to touch 6.13 million metric million British thermal unit (mmBtu) in February, the company said on Wednesday.
Traded volumes were up 3.24 times on a sequential basis.
Meanwhile, the monthly Regasified Liquefied Natural Gas (RLNG) volumes rose to a record 4.74 million mmBtu in February.
IGX is the only national-level gas exchange for the physical delivery of natural gas.
“There was a significant reduction in the gas prices during the month, which resulted in a surge in demand. Consequently, there was a substantial increase in the volume trade from gas-based power plants on IGX during the month,” Rajesh Kumar Mediratta, managing director and chief executive officer of the Indian Gas Exchange said.
Global freight rates for LNG have stabilised in recent months even as carriers continue to avoid the Suez Canal due to piracy in the Red Sea.
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A total of 101 trades were executed during the month.
The maximum number of trades were executed in the monthly contract format or 62 trades. This was followed by weekly and fortnightly contracts of 20 and 10 trades, respectively.
IGX has said demand will show a growing trend in the near term driven by the expansion of city gas distribution networks and increasing uptake from the power sector.
Last month, IGX launched the gas contracts for the power sector to meet the 255 Gw expected peak power demand in India in the upcoming summer season, up from 241 Gw in 2023.
In 2024, India's LNG imports are expected to get a boost if prices stay pressured, with year-on-year inflows likely to grow up to 7-8 per cent, driven by higher demand in the power, industrial and transportation sectors while infrastructure spending also strengthens in a year due for national elections, S&P Global had said in December 2023.
February was the first month when Gujarat's Hazira terminal became the most active delivery point for free market gas, IGX said.
The deepwater port has seen a rise in incoming LNG cargoes in recent months. Other trading delivery points in February were Dabhol, Gadimoga, Dahej, Ankot, Suvali, Mhaskal & KG Basin.
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.
