Key Takeaways
- • IGX gas trading volume in August 2025 reached 6.23 million MMBtu, representing 50% month-on-month growth and 33% year-on-year increase, driven by higher domestic gas sales from producers.
- • GIXI benchmark price index declined to ₹1,014/$11.6 per MMBtu in August 2025, down 5% year-on-year and 1% month-on-month, reflecting international market weakness and subdued power sector demand amid heavy rainfall.
- • Free market gas accounted for 21% of total traded volume (approximately 1.3 million MMBtu), while domestic HPHT gas at the ceiling price of ₹878/$10.04 per MMBtu comprised 79% of volumes.
- • 182 total trades were executed across multiple contract tenors (monthly, fortnightly, weekly, daily, day-ahead, and intraday), with Dahej and Gadimoga emerging as the most active delivery points.
- • Global benchmark indices declined in August 2025: European TTF fell to $11.2/MMBtu (down 4% MoM, 9% YoY), while Asian WIM softened to $12.4/MMBtu (down 6% MoM, 14% YoY), creating headwinds for Indian gas pricing.
Summary
The Indian Gas Exchange (IGX) reported a robust 50% month-on-month surge in gas trading volumes during August 2025, reaching 6.23 million MMBtu (157 MMSCM), while simultaneously recording a 33% year-on-year increase. This expansion reflects strengthened domestic gas sales activity from producers across India's natural gas infrastructure. The growth trajectory demonstrates sustained liquidity expansion in India's energy derivatives market, with exchange-traded deliveries reaching 5.6 million MMBtu, equivalent to approximately 4.6 MMSCMD of physical throughput.
The composition of traded volumes reveals a bifurcated market structure: 79% consisted of domestic HPHT (High Pressure High Temperature) gas transacted at the government-mandated ceiling price of ₹878/$10.04 per MMBtu, while the remaining 21% (approximately 1.3 million MMBtu) traded as free market gas across various delivery points including Bokaro (CBM), KG Basin, and Hazira-ONGC locations. This pricing segmentation underscores continued government price controls on regulated domestic supply alongside an emergent liberalized market segment.
The IGX benchmark price index (GIXI) declined to ₹1,014/$11.6 per MMBtu in August 2025, representing a 5% year-on-year decline and 1% month-on-month decrease. This softening reflects subdued international market conditions and reduced domestic demand from the power generation sector, attributable to elevated rainfall and elevated domestic gas availability. Regional price variations persisted, with GIXI-West at ₹1,019/$11.6 per MMBtu tracking closely to the national average, while GIXI-East and GIXI-South traded 2% and 6% lower respectively due to transmission costs and tax differentials. The Dahej hub, a critical settlement point, was quoted at ₹1,010/$11.5 per MMBtu, trading at a 20% discount ($2.4/MMBtu) versus WIM-Ex Dahej prices.
Global benchmarks reinforced downward pricing pressure across all major indices in August 2025. European TTF fell to $11.2/MMBtu (down 4% MoM, 9% YoY), while Asian WIM contracted to $12.4/MMBtu (down 6% MoM, 14% YoY), and US Henry Hub settled at $2.9/MMBtu despite a 38% year-on-year gain. Trading activity concentrated across Dahej (dominant free market hub) and Gadimoga (ceiling price gas), with secondary flows through Jaya, Mhaskal, KG Basin, Bokaro, Dabhol, Ankot, Mallavaram, and Hazira-ONGC delivery points. The 182 executed trades distributed across monthly (55), fortnightly (50), weekly (30), daily (29), day-ahead (10), and intraday (8) contracts underscores a well-developed contract maturity spectrum supporting both hedging and operational requirements.
The composition of traded volumes reveals a bifurcated market structure: 79% consisted of domestic HPHT (High Pressure High Temperature) gas transacted at the government-mandated ceiling price of ₹878/$10.04 per MMBtu, while the remaining 21% (approximately 1.3 million MMBtu) traded as free market gas across various delivery points including Bokaro (CBM), KG Basin, and Hazira-ONGC locations. This pricing segmentation underscores continued government price controls on regulated domestic supply alongside an emergent liberalized market segment.
The IGX benchmark price index (GIXI) declined to ₹1,014/$11.6 per MMBtu in August 2025, representing a 5% year-on-year decline and 1% month-on-month decrease. This softening reflects subdued international market conditions and reduced domestic demand from the power generation sector, attributable to elevated rainfall and elevated domestic gas availability. Regional price variations persisted, with GIXI-West at ₹1,019/$11.6 per MMBtu tracking closely to the national average, while GIXI-East and GIXI-South traded 2% and 6% lower respectively due to transmission costs and tax differentials. The Dahej hub, a critical settlement point, was quoted at ₹1,010/$11.5 per MMBtu, trading at a 20% discount ($2.4/MMBtu) versus WIM-Ex Dahej prices.
Global benchmarks reinforced downward pricing pressure across all major indices in August 2025. European TTF fell to $11.2/MMBtu (down 4% MoM, 9% YoY), while Asian WIM contracted to $12.4/MMBtu (down 6% MoM, 14% YoY), and US Henry Hub settled at $2.9/MMBtu despite a 38% year-on-year gain. Trading activity concentrated across Dahej (dominant free market hub) and Gadimoga (ceiling price gas), with secondary flows through Jaya, Mhaskal, KG Basin, Bokaro, Dabhol, Ankot, Mallavaram, and Hazira-ONGC delivery points. The 182 executed trades distributed across monthly (55), fortnightly (50), weekly (30), daily (29), day-ahead (10), and intraday (8) contracts underscores a well-developed contract maturity spectrum supporting both hedging and operational requirements.
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