Indian Gas Exchange Executes First Long Duration Contract

The Indian Gas Exchange (IGX) has successfully executed its first Long Duration Contract (LDC), marking a major milestone in the evolution of the country’s gas trading ecosystem.

The inaugural trade under this new category was concluded for a three-month delivery period, spanning May to July 2025, at the Hazira ONGC delivery point. The contract was priced against the Platts West India Marker (WIM), a globally recognised benchmark for spot LNG cargoes. This landmark transaction reinforces IGX’s commitment to building a more transparent, flexible, and efficient marketplace aligned with India's broader energy market reforms.

This development follows the formal launch of LDCs on IGX earlier this year, an initiative approved by the Petroleum and Natural Gas Regulatory Board (PNGRB). These long-duration contracts are structured for durations ranging from three to six months, giving buyers and sellers the flexibility to secure natural gas supplies indexed to either IGX’s domestic Gas Price Index (GIXI) or global benchmarks provided by Platts, part of S&P Global Commodity Insights, including Platts WIM, Japan Korea Marker (JKM), and Platts Dated Brent.

Commenting on the achievement, Rajesh Mediratta, Managing Director and CEO of IGX, stated, “The conclusion of our first LDC marks a key milestone for IGX and the Indian gas market, enhancing flexibility, price discovery, and risk management for participants. The commencement of LDCs is another step towards deepening our gas market, and through competition and transparency, we aim to increase the share of natural gas to 15 percent in India’s energy mix.”

He further emphasised the strategic importance of IGX’s partnership with S&P Global Commodity Insights, saying, “This collaboration integrates global expertise with IGX’s leadership in gas trading to deliver robust price hedging solutions. We are grateful to PNGRB for their support and believe this initiative will unlock new opportunities and innovation in the Indian gas sector.”

Vera Blei, Head of Market Reporting and Trading Solutions at S&P Global Commodity Insights, welcomed the development and remarked, “IGX’s adoption of the Platts West India Marker (WIM) demonstrates the market’s confidence in our price benchmarks. This marks a pivotal moment in India’s natural gas market development by linking domestic gas prices to international LNG indicators.”

Platts WIM, launched in January 2010, serves as the daily benchmark assessment for spot LNG cargoes delivered ex-ship into ports in India and the Middle East. It is widely used in structuring supply contracts for LNG, gas, and power markets across the region.

With the introduction of LDCs, IGX aims to offer market participants more strategic tools for managing commodity and price risks while promoting competitive and transparent trade. This step is expected to catalyse broader participation in natural gas markets, ultimately supporting India’s energy transition goals.