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NSE to launch Indian Natural Gas Futures on July 27
The cash-settled contract will use IGX Gujarat (Dahej) hub monthly weighted average prices and trade under the NATGASIND symbol, with a 250 mmBtu trading unit.
India's National Stock Exchange will begin trading Indian Natural Gas Futures on July 27, marking its launch of the country's first exchange-traded energy derivative tied to a domestic benchmark, according to LiveMint Markets.
The contract will be cash settled, with the final settlement price based on the monthly weighted average price of actual deliveries on the Indian Gas Exchange during the contract month. The underlying benchmark is the IGX Gujarat (Dahej) hub price in rupees per mmBtu, excluding transportation charges, taxes and other fees, and it will trade with a 250 mmBtu trading unit.
NSE said the contracts will trade under the symbol NATGASIND and will be available for monthly trading, based on the launch calendar, Monday to Friday. NSE Clearing will handle clearing, settlement and risk management, including mark-to-market settlements using daily closing prices, along with initial, extreme loss and pre-expiry margins under its framework.
NSE said the instrument is intended to improve India-centric price discovery in the domestic natural gas market and give participants another way to manage price risk. The settlement calculation will exclude gas traded at ceiling prices, ssLNG transactions and long-duration contracts.
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