NSE, IGX Partner To Launch India’s First Domestic Gas Futures Contracts

The National Stock Exchange of India (NSE) and the Indian Gas Exchange (IGX) have joined hands to launch the first exchange-traded natural gas derivatives, as per an official statement. The move is significant, as the derivatives are being launched domestically, and the country is witnessing the first-ever initiative in this direction.

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The futures contracts will be based on the Gas IndeX of India (GIXI), which is the benchmark created by IGX and is based on the real-time prices of the gas being traded domestically in six regions. The launch has received approval from the Securities and Exchange Board of India (SEBI), though the exchanges have not disclosed a specific rollout date.

Domestic Benchmark Introduced

The introduction of GIXI-linked futures has been designed to fill a gap in localised hedging instruments in the Indian gas market, which has so far seen market participants relying on international benchmarks such as the Henry Hub in the U.S. or the Title Transfer Facility in Europe, which may not necessarily be representative of local supply-demand conditions.

According to NSE, the new futures contracts would allow gas prices to be determined on the basis of actual market transactions in India, thus avoiding exposure to volatility from outside forces. IGX, under the regulatory guidance of the Petroleum and Natural Gas Regulatory Board, has been providing a platform for spot and forward gas markets since its inception.

Broader Market Participation Expected

The exchanges stated that the contracts are designed for a wide range of participants, including financial institutions, registered brokers, and individual investors. City gas distributors, fertiliser makers, and power producers, among other entities in the gas value chain, would also be able to use these instruments to tackle price risks like stock.

The collaboration will bring together the physical gas trading infrastructure of IGX and the derivatives platform of the NSE, which will provide price discovery in conjunction with the liquidity of the financial markets.

Expansion Of Commodity Derivatives

NSE said the initiative aligns with its strategy to expand commodity derivatives using domestic benchmarks. According to the Futures Industry Association, NSE ranked as the world’s largest derivatives exchange by contract volume in 2025, while also placing among the top exchanges globally in equity trading.

With the launch of GIXI-linked futures, the natural gas market in India will receive a formal platform for price discovery and risk management based on trade data from within the country, which will represent a structural addition to the commodity derivatives market in the country.