Indian Gas Exchange IGX: Market depth remains limited despite five years
The Indian Gas Exchange IGX has completed five years of operation, yet its share in the overall gas market remains limited at around 3% of total consumption. This highlights a fundamental gap between market infrastructure and actual trading depth.
While IGX accounts for a larger share within the spot market, the spot segment itself is relatively small. A significant portion of India’s gas consumption continues to be tied to long-term contracts, administered pricing, and sector-specific allocations, limiting the volume available for exchange-based trading.
From an Indian Petroplus analysis, the constraint is not the platform but the underlying gas ecosystem. Limited domestic production growth, high LNG prices, and restricted pipeline access all contribute to a shallow trading pool.
The implication is clear: market reforms aimed at price discovery, derivatives, and financialisation may be advancing faster than the physical gas market can support. Without sufficient liquidity, price signals remain fragile.Ultimately, the Indian Gas Exchange IGX represents an important institutional step, but not yet a mature gas market. The next phase of reform will depend on expanding flexible supply and demand that can actively participate in trading, IGX, Gas Trading, Energy Market, Natural Gas India, Energy Reforms.