InvestorQ : What will be the role of the gas exchange that is being launched by the IGX? How can we trade gas on this exchange?
diksha shah made post

What will be the role of the gas exchange that is being launched by the IGX? How can we trade gas on this exchange?

Answer
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Priyanka N answered.
3 months ago


The first dedicated natural gas exchange will be inaugurated on Monday 15 June at IGX, which is a part of IEX. It is based on membership model and offers the option of trading with delivery as well as of taking delivery of natural gas. Of course, the charges for delivery transactions will be higher than normal transactions and will be charged at Rs.7 instead of Rs.5. As a starting point, a total of 6 trader members and around100 clients have been on-boarded to start trading in power contracts. IGX will offer spot and forward contracts at three locations viz Dahej, Hazira and Kakinada. The exchange is yet to clarify if the gas produced in domestic fields on nomination basis will be traded or not. The exchange is still awaiting clarity on this point. It will offer a good hedging mechanism for the producers and for the users.