Mumbai, January 9 (IANS). The National Stock Exchange of India Limited (NSE) and the Indian Gas Exchange (IGX) are in talks to launch Indian Natural Gas Futures contracts in India. The aim of this initiative is to further strengthen the natural gas market of the country. This information has been revealed in an official statement released on Friday.
The exchange said that the proposed futures contract will provide market participants with a clear and simple way to hedge their risks. This contract will be prepared according to the system of determining the changing price of natural gas in India.
NSE said the partnership will combine its deep expertise in the derivatives market with IGX’s leadership in spot natural gas trading, pricing and physical market development.
The statement said that this new futures contract will benefit gas producers, city gas supply companies, power producers, fertilizer manufacturing companies, industries, traders and financial investors. With this, they will be able to protect themselves from fluctuations in gas prices and make better plans for the future.
Sriram Krishnan, Chief Business Development Officer, NSE, said this partnership is a major step towards further strengthening India’s commodity derivatives markets. He informed that natural gas is emerging as an important fuel in India’s energy needs.
He also said that the futures contract being created in the country will bring transparency in prices, improve risk management and help in determining reliable price of gas as per the Indian market.
This partnership is in line with the broader objective of increasing the share of natural gas in the country’s energy needs and promoting market based pricing mechanism.
Complete details and timelines related to NSE and IGX contracts will be announced after approval from regulatory bodies. With this, this contract will be started easily in collaboration with all the concerned people.
The government has already taken several steps to increase the availability of natural gas for power generation, such as expansion of the National Gas Grid and connecting Liquefied Natural Gas (LNG) terminals to power plants.
–IANS
DBP/AS
