In a landmark development for India’s energy sector, the Indian Gas Exchange (IGX) has successfully executed its first Long Duration Contract (LDC), marking a pivotal step toward deepening the domestic gas market. The contract covers a three-month delivery period from May to July 2025 and was finalized at the Hazira ONGC delivery point. Notably, the deal is indexed against the Platts West India Marker (WIM), an international LNG price benchmark.
This is the first LDC since the product’s launch earlier this year following regulatory approval from the Petroleum and Natural Gas Regulatory Board (PNGRB). LDCs on IGX are designed for delivery periods ranging from three to six months, offering market participants a choice of indexation through IGX’s Gas Price Index (GIXI) or global benchmarks such as Platts WIM, Platts Japan Korea Marker (JKM), and Platts Dated Brent—published by S&P Global Commodity Insights.
Commenting on the development, Rajesh Mediratta, MD & CEO of IGX, said, “The conclusion of our first LDC marks a key milestone for IGX and the Indian gas market, enhancing flexibility, price discovery, and risk management for participants. This is another step towards deepening our gas market and gradually increasing the share of gas to 15% in the energy mix through competition, transparency, and flexibility.”
He also emphasised the value of IGX’s collaboration with S&P Global Commodity Insights, which combines global expertise with local leadership to offer robust price hedging tools. “We thank PNGRB for their support and are confident this initiative will unlock new opportunities and foster innovation in gas trading,” he added.
Vera Blei, Head of Market Reporting & Trading Solutions at S&P Global Commodity Insights, highlighted the significance of the deal. “IGX’s use of the Platts West India Marker (WIM) reflects the growing confidence of market participants in our pricing benchmarks and represents an important milestone in India’s natural gas market development,” she said.
She noted that the WIM, launched in January 2010, is the daily benchmark for spot LNG cargoes delivered ex-ship into ports in India and the Middle East. It serves as a key reference for LNG, gas, and power supply contracts across the region.
With the introduction of LDCs, IGX is enabling buyers to better manage commodity and price risks while promoting a more competitive, transparent, and efficient gas trading environment. This move aligns with India’s broader energy transition goals and regulatory reforms aimed at increasing the role of natural gas in the country’s energy basket.
