Indian gas market: Trading volumes surge 50%, prices drop 21% in Jan

The Indian gas market kicked off 2026 with a 50% monthly surge in trading volumes on the IGX to 8.4M MMBtu. This growth was fueled by city gas demand and HPHT gas trade, while gas prices for consumers fell 21% year-on-year.

The Indian gas market began the year with increased activity, according to the latest data released for January 2026. Trading volumes on the Indian Gas Exchange (IGX) climbed to 8.4 million Metric Million British thermal units (MMBtu), which is about 212 million standard cubic meters. This represents a 50 per cent increase over the previous month and a 17 per cent increase from the same period last year.

Much of this growth came from higher demand in city gas networks and increased trading of domestic gas from high-pressure, high-temperature (HPHT) fields.

Gas Prices Fall Amid Increased Local Supply

While trading activity increased, the price of gas for Indian consumers fell. The benchmark Indian Gas Price Index, known as GIXI, fell to Rs 962 per MMBtu in January. This is a 3 per cent drop from December and a much larger 21 per cent decrease compared to January last year.

The release notes that the "rise in volume was primarily due to CGD demand & domestic HPHT gas trade volume," while also highlighting that "prices trended on a downward YoY basis, due to increased local supply."

Breakdown of Market Trades

The market recorded 145 trades throughout the month. Most of the gas sold--about 84 per cent--was domestic HPHT gas sold at a government-set ceiling price of Rs 878 per MMBtu. The remaining 16 per cent was sold as free-market gas, with prices set by buyers and sellers.

Trading Hubs and Contract Popularity

Producers from locations like Bokaro, Jaya, and the KG Basin were active in trading gas with pricing freedom. Dahej emerged as the busiest spot for free-market gas, while Gadimoga was the top location for gas sold at the ceiling price.

Among the types of contracts used, fortnightly agreements were the most popular, with 69 trades, followed by monthly contracts. The market also saw some smaller-scale liquefied natural gas (ssLNG) trades. (ANI)

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