NSE & IGX To Launch Indian Natural Gas Futures Contract
"The proposed futures contract will provide market participants with a transparent, efficient and robust risk management tool aligned to India’s evolving natural gas pricing framework," NSE said.
Mumbai: National Stock Exchange of India (NSE), is working on a strategic collaboration with Indian Gas Exchange (IGX) to develop and launch Indian Natural Gas Futures, aimed at strengthening India’s natural gas market ecosystem. "The proposed futures contract will provide market participants with a transparent, efficient and robust risk management tool aligned to India’s evolving natural gas pricing framework," NSE said.
"The introduction of Indian Natural Gas Futures is expected to benefit gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders and financial participants, by enabling effective hedging against price volatility and improving long-term planning," NSE said.Speaking on the proposed collaboration, Sriram Krishnan, chief business development officer, 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 said.