The Indian Gas Exchange (IGX) has announced a significant stride in its evolution by entering into a data licensing agreement with S&P Global Commodity Insights. This strategic collaboration, unveiled during the 3rd Anniversary event of the Indian Gas Exchange, underscores IGX’s commitment to innovation and market growth.
Under the agreement, IGX will incorporate S&P Global’s renowned Platts benchmarks into its proposed Long Duration Contracts (LDCs). This move is poised to fortify IGX’s position in the Indian gas market by providing a solid framework for settling its LDCs. The inclusion of key indices such as the Platts Japan Korea Marker (JKM), Platts West India Marker (WIM), and Platts Dated Brent will empower IGX to offer a diverse range of contracts to its trading participants.
S&P Global Commodity Insights, recognised globally for its meticulous price assessment methodologies and independent daily price assessments in various energy and commodities markets, brings a wealth of expertise to the Indian Gas Exchange. The integration of S&P Global’s benchmarks is expected to enhance market liquidity and foster an environment conducive to the growth of the natural gas sector in India.
IGX’s Long Duration Contracts, featuring commitment lengths ranging from three months to one year, are designed to assist market participants in securing their natural gas needs. The platform aims to provide flexibility to buyers, allowing them to choose between fixed-price terms or prices linked to international Platts benchmarks. This flexibility empowers buyers to manage commodity and price risks through competitive, transparent, and flexible options on the IGX.
Commenting on this development, Rajesh Mediratta, MD & CEO of Indian Gas Exchange Limited, expressed optimism about the collaboration’s impact on the gas sector in India. He stated, “This collaboration brings together the strengths of both the companies for the benefit and growth of the Gas Sector in India. This milestone initiative will offer trading participants of IGX unprecedented flexibility and price hedge. We are confident this data collaboration will open many more areas of cooperation between our two companies.”
Saugata Saha, President of S&P Global Commodity Insights, also shared his enthusiasm, stating, “We’re pleased IGX recognises the price transparency Platts benchmarks bring to the marketplace, as well as their relevance beyond the point of assessment. We welcome important data-licensing alliances that foster growth in key marketplaces like India.”
