IGX hopes to launch contracts for LNG trading next month: CEO Mediratta

Indian Gas Exchange hopes to launch contracts for LNG trading next month - CEO 

The Indian Gas Exchange (IGX) hopes to launch contracts for the trading of liquefied natural gas (LNG) next month, enabling companies not linked to the pipeline network to use the cleaner fuel, its chief executive said on Thursday.
 

India is building a vast gas pipeline network and import facilities as Prime Minister Narendra Modi wants to raise the share of gas in the country's energy mix to 15% by 2030 from about 6% currently.
 

"The LNG contracts will help the small industries with regassification facilities to transport LNG in trucks from the (import) terminals," Rajesh K Mediratta told reporters at an industry event.
 

He said IGX hopes to have daily volumes of 0.5 million-1 million cubic metres of gas under the new contracts.

IGX is also seeking regulatory approvals to launch long-term gas contracts with a duration ranging from three months to one year. The pricing of gas under the long-term contracts will be linked to a formula, he said.
 

"There are industries such as glass, ceramic, fertilisers, and refineries that want long-term contracts," he said, adding the long-term contracts could be launched by December-January.
 

At present, IGX has daily, weekly, fortnightly, and monthly gas contracts.