NSE in talks with IGX to develop Indian Natural Gas Futures contract

The proposed futures contract will provide market participants with a transparent, efficient, and robust risk management tool aligned to the evolving natural gas pricing framework, the exchange said.

Stock exchange NSE on Thursday said it is in discussion with Indian Gas Exchange (IGX) to develop and launch Indian Natural Gas Futures, an initiative aimed at strengthening the country’s natural gas market ecosystem.

The proposed futures contract will provide market participants with a transparent, efficient, and robust risk management tool aligned to the evolving natural gas pricing framework, the exchange said. This collaboration is expected to bring together NSE’s expertise in the derivatives market and IGX’s leadership in spot natural gas trading, price discovery, and physical market development. The introduction of Indian Natural Gas Futures is expected to benefit gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders, and financial participants by enabling effective hedging against price volatility and improving long-term planning.

"The proposed collaboration with IGX marks a significant step in NSE’s efforts to deepen India’s commodity derivatives markets,” said Sriram Krishnan, Chief Business Development Officer of NSE. According to him, natural gas is emerging as a critical transition fuel for India’s energy mix, and a domestic futures contract will enhance price transparency, improve risk management capabilities, and support the development of a credible gas price benchmark aligned with Indian market fundamentals.

"By leveraging NSE’s market infrastructure and IGX’s physical market expertise, we aim to create a futures product that is relevant, liquid, and trusted by the entire gas value chain,” he added. Subject to regulatory approvals, NSE and IGX will work closely with stakeholders to ensure a smooth launch of the proposed derivatives contract. Further details on contract design and launch timelines will be announced in due course, the exchange said.