Mumbai : National Stock Exchange of India announced that it is in discussion on a strategic collaboration with Indian Gas Exchange (IGX) to develop and launch Indian Natural Gas Futures, a landmark initiative aimed at strengthening India's natural gas market ecosystem.

The proposed futures contract will provide market participants with a transparent, efficient, and robust risk-management tool aligned with India's evolving natural gas pricing framework, according to a statement from NSE.

This collaboration brings together NSE's deep expertise in the derivatives market and IGX's leadership in spot natural gas trading, price discovery, and physical market development.

The introduction of Indian Natural Gas Futures is expected to benefit gas producers, city gas distribution companies, power generators, fertiliser manufacturers, industrial consumers, traders and financial participants by enabling effective hedging against price volatility and improving long-term planning.

Speaking on the proposed collaboration, Sriram Krishnan, Chief Business Development Officer, NSE, said: "The proposed collaboration with IGX marks a significant step in NSE's efforts to deepen India's commodity derivatives markets. Natural gas is emerging as a critical transition fuel for India's energy mix, and a domestic futures contract will enhance price transparency, improve risk management capabilities, and support the development of a credible gas price benchmark aligned with Indian market fundamentals."

He added: "By leveraging NSE's market infrastructure and IGX's physical market expertise, we aim to create a futures product that is relevant, liquid and trusted by the entire gas value chain."

The proposed collaboration is aligned with India's broader objective of increasing the share of natural gas in the energy basket and promoting market-based pricing mechanisms.

Subject to regulatory approvals, NSE and IGX will work closely with stakeholders to ensure a smooth launch of the proposed derivatives contract. Further details on contract design and launch timelines will be announced in due course.

The National Stock Exchange of India (NSE) was the first exchange in India to implement electronic, or screen-based, trading. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings.