IGX To Launch LDC In Feb In Collaboration With S&P Global
Indian Gas Exchange (IGX) on January 27 announced the launch Long Duration Contracts (LCDs) for terms of 3 to six months. This comes after it was got the approval for LDCs from Petroleum and Natural Gas Regulatory Board (PNGRB).
The LDCs will be available for trading from February 3, and will leverage data from IGX’s Gas Price Index (GIX) as well as international benchmarks from Platts, such as Platts Japan Korea Marker (JKM), Platts West India Marker (WIM), and Platts Dated Brent.
IGX’s LDCs are designed to offer market participants in India enhanced flexibility in securing their natural gas requirements. It will offer buyers on its platform to choose between fixed pricing or one linked to IGX and Platt benchmarks. The incorporation of Platts benchmarks with IGX’s own GIX is expected to boost market liquidity and foster an environment conducive to the sustained growth of India’s natural gas sector.
Speaking on the collaboration, Mr. Rajesh Mediratta, MD & CEO, Indian Gas Exchange Limited, said, “Exactly a year ago, we embarked on this journey by signing the agreement to develop these contracts, and today, we proudly launch them—demonstrating our commitment to advancing India’s gas sector. This data-licensing collaboration with S&P Global Commodity Insights seamlessly combines our expertise to deliver flexibility and robust price hedging options to our trading participants. We extend our sincere gratitude to PNGRB for their support and approval, which has been instrumental in bringing this initiative to fruition. This represents a pivotal step forward, and we are confident it will pave the way for new opportunities and innovative growth for both organizations.”
Matt Eversman, Director of Global Licensing and Exchange Relationships for S&P Global Commodity Insights, added, “We are pleased Platts benchmarks will help to bring transparency and efficiency to India’s high-potential as market, and we look forward to continued collaboration with IGX ahead”
