India’s gas trading activity saw a sharp rebound in January 2026, with volumes on the Indian Gas Exchange (IGX) rising 50% month-on-month to 8.4 million MMBtu (212 MMSCM), driven primarily by higher city gas distribution (CGD) demand and increased trading of domestic high-pressure high-temperature (HPHT) gas, according to the Gas Market Update released by IGX.
On a year-on-year basis, traded volumes were up 17%, reflecting growing reliance on market-based gas procurement as domestic production flows improved across key basins.
Of the total gas traded during the month, around 84% comprised domestic HPHT gas sold at the government-mandated ceiling price of ₹878 or $9.72 per MMBtu, while 16% was free-market gas, IGX said. Nearly 8 MMSCM of domestically produced gas with pricing freedom was traded by producers across delivery points including Bokaro (CBM), Jaya, KG Basin and Hazira-ONGC.
The rise in volumes came even as benchmark gas prices continued to ease.
Price Decoupling
The Indian Gas Price Index (GIXI®) for January 2026 settled at ₹962 or $10.6 per MMBtu, marking a 3% decline month-on-month and a sharp 21% fall year-on-year, largely due to higher domestic supply availability.
Regional price indices tracked the national benchmark closely. GIXI®-West stood at ₹967 per MMBtu, broadly in line with the all-India price, while GIXI-East and GIXI-South were lower by 4% and 6% respectively, reflecting transmission and tax differentials. The GIXI-Dahej index slipped 2% month-on-month to ₹957 per MMBtu and traded at an 8% discount to the WIM-Ex Dahej spot benchmark, IGX said.
In contrast to the softening domestic trend, global gas markets firmed up during the month amid extended winter demand and geopolitical tensions. European benchmark TTF averaged $13 per MMBtu, up 32% month-on-month, while WIM-Ex Dahej rose 8% to $11.4 per MMBtu. The US Henry Hub price averaged $4.1 per MMBtu, down 7% sequentially but up 10% year-on-year.
Trading activity on the exchange also picked up, with 145 trades executed during January across a range of contract tenures. Fortnightly contracts remained the most active, accounting for 69 trades, followed by 56 monthly contracts and 16 daily contracts, alongside smaller volumes in intraday, day-ahead and balance-of-month products. Four trades were recorded in small-scale LNG (ssLNG) contracts.
Operational Milestone
Dahej emerged as the most active delivery point for free-market gas, while Gadimoga led trading in ceiling-price domestic gas. Other key hubs included Mhaskal, Dabhol, Jaya, Bokaro, Bhadbhut, Mallavaram, KG Basin and Hazira-ONGC.
Exchange-traded physical deliveries during the month amounted to 3.2 million MMBtu, or about 2.6 MMSCMD, underscoring the growing role of IGX in facilitating short-term gas procurement for industrial users and CGD companies.
Market participants say the sharp jump in volumes reflects improving domestic supply flows and rising demand from CGD networks, which are expanding rapidly across urban centres.
With more producers offering gas at market-linked prices and consumers increasingly turning to exchange-based procurement for flexibility, analysts expect trading activity on IGX to remain firm in the coming months, even as price trends continue to reflect local supply dynamics more than global volatility.