IGX Navigates Lower Demand Amid Power Sector Decline

The Indian Gas Exchange (IGX) experienced an 8% drop in traded gas volume in June, influenced by reduced demand from the power industry due to early rains. Despite this, IGX reported significant growth of 109% in the first fiscal quarter. A notable first trade was recorded for a six-month Long Duration Contract.

In June, the Indian Gas Exchange (IGX) reported an 8% decline in traded gas volumes due to early rains impacting power sector demand. Overall, 4 million mmBtu of gas was traded, marking decreases of 8% year-on-year and 14% month-on-month.

Meanwhile, the April-June fiscal quarter recorded a remarkable 109% growth in traded volumes, with a total of 24.5 million mmBtu. A significant development during this period was the execution of the first trade under a six-month Long Duration Contract.

Despite lower domestic demand, international gas prices rose due to geopolitical tensions, notably the Iran-Israel war. Nonetheless, the IGX reported 130 trades for the month, reflecting active involvement across various delivery points and contracts.