The niche business is expected to see major growth in coming years, and an application has been filed with the Petroleum and Natural Gas Regulatory Board (PNGRB), IGX CEO Rajesh Mediratta said. ssLNG contracts are set to benefit buyers who are situated in areas not yet covered by the national gas grid. As of FY23, approximately 0.7 Million Metric Standard Cubic Meters per Day (MMSCMD) of LNG is transported by road in India, constituting around 0.4 percent of the total natural gas consumption. This is expected to grow to 5 MMSCMD over the next five years, the company said.
IGX has suggested it can launch the service at LNG terminals at Dahej, Dabhol, Hazira, Kochi, and Ennore to begin with. The company also has plans to initiate cross-border sourcing of natural gas by Bangladesh through the company’s eastern hub at Dhamra port, the only LNG terminal in the Eastern Region.
The company has also sought approvals to begin offering 3-month, 6-month, and 12-month contracts. The prices will be linked to external benchmarks such as JKM, WIM, Brent, and the company’s GIXI index, launched in 2022. IGX has recently signed an index sharing agreement with S&P Platts, a global provider of information and benchmark prices for the commodities and energy markets. Platform development is being carried out in the current Exchange system. IGX believes this will benefit participants by providing a competitive option for buyers and sellers over longer durations. Importantly, it will enable buyers to hedge against volatility risks in spot prices.
