NSE, IGX in talks to launch India's first natural gas futures contract

The NSE said on Thursday it is in discussions with the Indian Gas Exchange to develop and launch an Indian Natural Gas Futures contract, a move that could mark a significant step in deepening India’s energy and commodity derivatives markets.

In a statement, NSE said talks are centred on a strategic collaboration aimed at building a domestic futures contract aligned with India’s evolving natural gas pricing framework. The proposed product is expected to offer market participants a transparent and efficient risk management tool, while also supporting better price discovery in the country’s growing gas market.

The initiative seeks to combine NSE’s experience in operating large-scale derivatives markets with IGX’s role in spot natural gas trading and physical market development. IGX currently facilitates gas trading across multiple hubs in India and plays a key role in price discovery for domestically traded natural gas.


According to NSE, the introduction of Indian Natural Gas Futures is expected to benefit a wide range of participants across the energy value chain. These include gas producers, city gas distribution companies, power producers, fertiliser manufacturers and industrial consumers, as well as traders and financial investors. A domestic futures contract would allow these participants to hedge against price volatility, manage procurement risks more effectively and improve long-term planning and investment decisions.

Commenting on the proposed collaboration, Sriram Krishnan, Chief Business Development Officer at NSE, said the discussions reflect the exchange’s broader push to deepen India’s commodity derivatives ecosystem. He said natural gas is increasingly emerging as a critical transition fuel in India’s energy mix and that a well-designed domestic futures contract could play a key role in strengthening the market.

Krishnan said a local futures product would enhance price transparency and improve risk management capabilities for market participants, while also supporting the development of a credible gas price benchmark aligned with Indian demand and supply dynamics. He added that by leveraging NSE’s market infrastructure and IGX’s expertise in the physical gas market, the two institutions aim to create a futures product that is relevant, liquid and trusted across the gas value chain.

NSE said the discussions with IGX are ongoing and that the launch of the proposed futures contract would be subject to regulatory approvals. The two exchanges plan to work closely with regulators and other stakeholders to ensure a smooth rollout, including contract design, settlement mechanisms and participation norms.

IEX on Friday clarified that IGX is only an associate company and with its own independent management and Board and it does not have any role in the day-to-day operations and management of IGX.