Indian Gas Market Surges with Record Trading Activity in January 2026

The Indian gas market witnessed heightened activity in January 2026, with trading volumes on the Indian Gas Exchange (IGX) reaching 8.4 million MMBtu. This marks a 50% increase from December and a 17% rise year-on-year. City gas networks' demand and domestic HPHT gas trading fueled this surge amid a significant price drop.

In January 2026, the Indian gas market experienced a notable uptick in activity, as evidenced by the latest data from the Indian Gas Exchange (IGX). With trading volumes rising to 8.4 million Metric Million British thermal units (MMBtu)—equivalent to approximately 212 million standard cubic meters—there was a significant 50% increase over the previous month and a 17% increase from the same month last year.

This boost in activity can be attributed largely to heightened demand within city gas networks and a rise in domestic gas trading from high-pressure, high-temperature (HPHT) fields. Happily for consumers, even as trading expanded, the cost of gas fell, with the benchmark Indian Gas Price Index (GIXI) dropping to Rs 962 per MMBtu in January. This represents a 3% decrease from December and a substantial 21% decrease from January 2025.

The release outlined that the increased trading volume was rooted in CGD demand and domestic HPHT gas trading, with prices trending downward year-on-year due to expanded local supply. Throughout the month, 145 trades were recorded, with approximately 84% of the gas sold as domestic HPHT gas at the governmental ceiling price of Rs 878 per MMBtu. The remaining gas sold at free-market prices, determined by both buyers and sellers, saw active participation from producers in regions such as Bokaro, Jaya, and the KG Basin. Dahej stood out as the leading spot for free-market gas trades, while Gadimoga was noted for ceiling-priced gas sales.

In terms of contract popularity, fortnightly agreements led the pack with 69 trades, closely followed by monthly contracts. The market also observed small-scale liquefied natural gas (ssLNG) transactions.

(With inputs from agencies.)