Indian Gas Price Index Sees 19% Increase in May Amid Rising Spot Prices

The Gas IndeX of India (GIXI) for May was recorded at Rs 1,016, equivalent to USD 11.9 per million British thermal units. This marks a 19% increase compared to the previous year, aligning with higher European and Asian spot gas benchmarks. However, on a month-to-month basis, GIXI saw a 5% decline due to reduced demand and increased supply, according to a statement from the Indian Gas Exchange Limited (IGX).

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Trade volumes on IGX also experienced a 5% year-on-year decrease, amounting to 4.7 million mmBtu or 118 million standard cubic metres. This drop is attributed to lower demand from the power sector. The power sector's anticipated gas demand did not materialise as expected due to an early monsoon, which led to a lower peak demand of 231 GW instead of the projected 260 GW or more.

Gas Demand and Trade Dynamics

In May 2025, a total of 140 trades were executed. Around 80% of these traded volumes consisted of free market gas, while the remaining 20% were domestic high-pressure high-temperature (HPHT) gas priced at Rs 861 or USD 10.04 per mmBtu. The most active delivery points for free market gas included Chhara and Mallavaram, whereas ceiling price gas was actively delivered at Dahej, Mhaskal, KG Basin, Bokaro, Bhadbhut, Hazira, Dabhol, and Ankot.

The exchange-managed deliveries during the month amounted to 7.9 million mmBtu or 6.4 million standard cubic meters per day. Shapoorji Pallonji Energy Private Limited joined as a new proprietary member in May, increasing the total number of registered members on IGX to 50.

Market Trends and Member Expansion

Around 7.5 mmscmd of gas with pricing freedom was available at delivery points such as Bokaro CBM, KG Basin, and ONGC Hazira. Most marketers maintained high inventories in anticipation of demand from the power sector. However, this expected demand did not materialise due to the early onset of the monsoon season.

The dynamics of India's gas market reflect changing patterns in supply and demand influenced by seasonal factors and international benchmarks. The addition of new members like Shapoorji Pallonji Energy Private Limited highlights ongoing interest and participation in the Indian gas exchange market.

With inputs from PTI