NSE, IGX in Talks to Collaborate and Launch Indian Natural Gas Futures Contract

As per news reports, the National Stock Exchange of India (NSE) is working towards a strategic collaboration with Indian Gas Exchange (IGX) to develop and launch Indian Natural Gas Futures, a move aimed at strengthening the country’s evolving natural gas market ecosystem. 

Market Development and Product Objective 

According to NSE, the proposed futures contract is intended to provide market participants with a transparent, efficient and robust risk management tool that aligns with India’s changing natural gas pricing framework.  

The exchange said the introduction of domestic gas futures would help deepen market participation and support better price discovery across the gas value chain. 

The futures product is expected to benefit a wide range of participants, including gas producers, city gas distribution companies, power producers, fertiliser manufacturers, industrial consumers, traders and financial investors.  

NSE said the contract would enable effective hedging against price volatility while supporting long-term business planning in a market that is becoming increasingly sensitive to global and domestic supply-demand dynamics. 

Management Commentary 

Speaking on the proposed collaboration, Sriram Krishnan, chief business development officer at NSE, said, “Natural gas is emerging as a critical transition fuel for India’s energy mix, and a domestic futures contract will enhance price transparency, improve risk management capabilities, and support the development of a credible gas price benchmark aligned with Indian market fundamentals.” 

“By leveraging NSE’s market infrastructure and IGX’s physical market expertise, we aim to create a futures product that is relevant, liquid and trusted by the entire gas value chain,” he added.  

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Conclusion 

The proposed NSE-IGX collaboration marks an important step towards building a structured derivatives market for natural gas in India, supporting price stability, transparency and the country’s broader energy transition goals. 

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