Indian Gas Exchange (IGX) is expecting a 35 per cent jump in gas traded on its platform during the current financial year on the back of increased demand.

“During 2022-23, over 5.1 crore million metric british thermal unit (MMBTU) of gas was traded on IGX platform. This fell to 4 crore MMBTU in 2023-24. This year we expect almost a 35 per cent increase in gas trading. The increased demand from gas-fired power plants, city gas distribution networks and fertilizer units and industry will propel the growth,” said Rajesh Kumar Mediratta, MD and CEO of IGX, during his visit to the city earlier this week.

Also read: IGX launches small scale LNG contracts

“The growth in gas consumption has remained muted due to high prices. The spot prices in the international markets have softened during the last year and so the market for gas has improved. Earlier, when the prices were higher, a number of industries were not using it. The price of gas which was around $15-16 per MMBTU has come down to $9-10. This softening of prices will surely propel demand for gas,” he added. 

Currently, Gujarat is the biggest consumer of natural gas in India, followed by Maharashtra.

“Of the 185 million metric standard cubic meters per day of total gas consumption in India, 25 percent is consumed in Gujarat,” said Mediratta.

On the proposed green hydrogen trading platform that IGX has planned to set up in GIFT City along with Gujarat State Petroleum Corporation (GSPC) and the International Financial Services Centre (IFSC), Mediratta said, “We are at a discussion stage. The green hydrogen plants have just started to be set up. We are waiting for the market to develop. Once the green hydrogen production reaches a certain level, we will launch a platform. Before that we will create a price index which can give us an indication as to what prices the deals can take place.”