India’s gas market witnessed a notable surge in February 2025, with the Gas IndeX of India (GIXI) reaching ₹1,112 or $12.8 per MMBtu. This marks a 25% year-on-year (YoY) increase, driven primarily by heightened gas demand from Europe, especially in gas-based power plants. The price surge aligns with the international gas market trends, with European and East Asian spot prices showing significant growth.
European gas benchmark TTF rose sharply to $15.4 per MMBtu, reflecting a 90% YoY increase and a 6% month-on-month (MoM) rise. Similarly, the West India Marker (WIM) price reached $16 per MMBtu, up 65% YoY and 5% MoM. GIXI-West remained at the same level as the All India GIXI, while GIXI-East was lower by 10% at Rs 1000 or $11.5 per MMBtu due to transmission cost differentials.
Meanwhile, GIXI-Dahej was recorded at ₹1,111 or $12.8 per MMBtu, marking a 10% MoM decline. It traded at a discount of $2 per MMBtu (18%) compared to the WIM-Ex Dahej settled price. In contrast, the U.S. gas benchmark Henry Hub (HH) remained relatively stable at $3.7 per MMBtu, showing a marginal 1.5% MoM decline.
The Indian Gas Exchange (IGX) experienced robust trading activity, with a total of 7.8 million MMBtu (196 MMSCM) of gas traded, reflecting a 27% YoY increase. Notably, 42% of the traded volumes consisted of free market gas, while 58% comprised domestic high-pressure, high-temperature (HPHT) gas capped at ₹883 or $10.16 per MMBtu. Additionally, 0.13 million MMBtu of gas was traded at pricing freedom at Bokaro (CBM), Jaya, and ONGC Hazira delivery points.
A total of 214 trades were executed in February, marking a significant milestone. The first trades at the Chhara R-LNG Terminal and the Barmer delivery point in the Northern Regional Hub were successfully executed. The most active delivery points included Chhara for free market gas and Gadimoga for ceiling price gas, attributed to increased sales from domestic producers. Other key delivery locations were Dahej, KG Basin, Bokaro, Jaya, Mallavaram, Hazira, Ankot, Barmer, Mhaskal, and Suvali. Approximately 48% of free market volumes were traded at Dahej.
IGX recorded its highest monthly delivery volume of the year, with 7.5 million MMBtu (~6.8 MMSCMD) traded during February. Currently, IGX facilitates trade at 17 delivery points, including five LNG terminals, nine domestic gas field landfall points, and three pipeline interconnection points.
IGX offers seven different spot contracts—Intraday, Day-Ahead, Daily, Weekday, Weekly, Fortnightly, and Monthly—along with two long-duration contracts (three months and six months) linked to global benchmarks such as GIXI, JKM, WIM, and Dated Brent. In February, the highest number of trades were recorded in the Daily contract (84), followed by Fortnightly (51), Monthly (27), Weekly (24), Day-Ahead (16), and Weekday (12).
With gas demand on the rise and increased trading activity, India’s gas market is poised for further expansion, aligning with global energy trends and reinforcing the country’s energy security strategy.
