NSE in talks with IGX to develop Natural Gas Futures contract

New Delhi: Stock exchange NSE on Thursday said it is in talks with Indian Gas Exchange (IGX) to jointly develop and launch Indian Natural Gas Futures, a move aimed at strengthening India’s natural gas market ecosystem.

The proposed futures contract is expected to offer market participants a transparent and efficient risk management tool aligned with the evolving domestic gas pricing framework. The collaboration will combine NSE’s expertise in commodity derivatives with IGX’s leadership in spot gas trading, price discovery and physical market development.

Once launched, the contract is expected to benefit gas producers, city gas distribution companies, power producers, fertiliser makers, industrial users, traders and financial participants by enabling effective hedging against price volatility and supporting long-term planning.

Sriram Krishnan, Chief Business Development Officer at NSE, said the proposed collaboration marks a key step in deepening India’s commodity derivatives markets. He added that natural gas is emerging as a crucial transition fuel in India’s energy mix, and a domestic futures contract would improve price transparency, enhance risk management and help build a credible gas price benchmark based on Indian market fundamentals.

Subject to regulatory approvals, NSE and IGX will work closely with stakeholders to ensure a smooth rollout of the futures contract. Details on contract structure and launch timelines will be announced later, NSE said. Mpost