NSE Launches India's First Domestic Benchmark-Based Natural Gas Futures Contract
The National Stock Exchange (NSE) is set to launch India's first domestic benchmark-based natural gas futures contract on July 27. This move marks NSE's entry into domestically benchmarked energy derivatives and aims to provide market participants with a new instrument to manage price risk in India's natural gas market.
The cash-settled contract, which will trade under the symbol NATGASIND, will be linked to the Indian Gas Exchange's (IGX) Gujarat (Dahej) hub price. The trading unit has been fixed at 250 mmBtu, and contracts will be available for trading from Monday to Friday.
The final settlement price will be based on the monthly weighted average price of actual deliveries on the IGX during the contract month, excluding gas traded at ceiling prices, SS-LNG transactions, and long-duration contracts. NSE Clearing will provide clearing, settlement, and risk management services for the contracts.