17) Indian Gas Exchange

Question 1

What is Indian Gas Exchange (IGX) ?

Answer 1

It is a digital trading platform that will allow buyers and sellers of natural gas to trade both in the spot market and in the forward market for imported natural gas

Question 2

Features ?

Answer 2

It will allow trading across 3 hubs –
Dahej and Hazira in Gujarat
Kakinada in AP

Question 3

Is it India’s first ?

Answer 3

YES

Question 4

Difference between Spot markets and Forward markets ?

Answer 4

Spot markets – In this assets are bought or sold for “On the spot” delivery. Spot market prices are the current prices of the asset
Futures markets – In this participants agree today to buy or sell an asset at some future date at a particular price. Thus, prices at the future market are estimated

Question 5

How long are the contracts in the exchange ?

Answer 5

6 months to 1yr

Question 6

Explain the functionality ?

Answer 6

Imported Liquefied Natural Gas (LNG) will be regassified and sold to buyers through the exchange, removing the barrier for buyers and sellers to find each other