NSE Partners with IGX to Launch Natural Gas Derivatives Market

National Stock Exchange Collaborates with Indian Gas Exchange to Launch Natural Gas Derivatives

The National Stock Exchange (NSE) has announced a significant collaboration with Indian Gas Exchange (IGX) to introduce exchange-traded derivatives based on natural gas traded and delivered on the IGX platform. The partnership marks a crucial milestone in the development of India's gas ecosystem and aims to strengthen the country's domestic natural gas market.

As part of this collaboration, NSE will launch Indian natural gas derivative contracts based on IGX's benchmark Price Index GIXI (Gas IndeX of India). The contracts will be designed to reflect domestic gas market dynamics, with pricing linked to actual trades on the IGX platform. This move comes at a time when natural gas and crude oil prices are swinging sharply due to the ongoing conflict in the Middle East and fears around supply disruption through the Strait of Hormuz.

NSE has received approval from the Securities and Exchange Board of India (SEBI) to launch the Indian Natural Gas Futures, with the launch dates to be communicated at a later date. According to a report in The Hindu, NSE had received the approval from Sebi to launch these contracts in February 2026. The contracts will be monthly, with 12 monthly contracts available for trading at any point in time.

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The introduction of these contracts is expected to benefit various stakeholders, including gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders, and financial participants. The contracts will enable effective hedging against price volatility and improve long-term planning, while also providing financial institutions, exchange-registered brokers, and investors with an investment tool to invest in the domestic natural gas market derivatives.

Sriram Krishnan, Chief Business Development Officer (CBDO) at NSE, commented on the development, stating that the collaboration with IGX represents a significant milestone in the development of India's gas ecosystem. By introducing derivatives based on IGX benchmarks, NSE aims to create robust risk management tools that are closely aligned with the domestic physical gas market.