New Delhi: India has built much of the physical backbone for a gas-based economy and must now shift policy focus towards expanding consumption through market openness and efficiency, Anil Kumar Jain, chairperson of the Petroleum and Natural Gas Regulatory Board (PNGRB), said on Thursday. Speaking at an industry event organised by Indian Gas Exchange (IGX), Jain said the next phase of reforms must prioritise higher participation and better utilisation of existing infrastructure rather than continued infrastructure build-out alone.
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In a clear regulatory signal, Jain said PNGRB is keen to support the introduction of the entry–exit tariff system to create a more customer-friendly gas market framework. “Platforms such as IGX play a crucial role by bringing transparency, enabling price discovery, facilitating gas and LNG capacity trading. We are keen in supporting reforms such as the entry–exit system for creating customer-friendly market framework. As India’s gas market continues to evolve, alignment with global norms will help improve efficiency, optimise costs and support the sustained growth of the gas ecosystem,” said Jain.
AK Tiwari, member, PNGRB, said India’s gas sector is at a critical juncture and called for deeper exchange-led trading across the value chain. IGX plays an important role in enhancing transparency, liquidity and price discovery in the gas market. “IGX has been introducing new products which would be instrumental in deepening of exchange-led trading. We are keen to see more contracts on exchange like 1 year, 2-year contracts, LNG trading, Regas Capacity Booking Platform, Renewable Gas Certificates etc. Furthermore, continued engagement among stakeholders will be essential to support market-aligned reforms and enable the sustained growth of a robust gas ecosystem,” he said.
IGX Managing Director (MD) and Chief Executive Officer (CEO) Rajesh Mendiratta said that while infrastructure and market-oriented reforms have progressed steadily, gas markets need stronger market infrastructure to mature. “However, for gas markets to truly mature, there is a need to strengthen Market Infrastructure, i.e. exchange to deepen competition, simplify access to infrastructure, and strengthen market-based price discovery. IGX has achieved fair success in bringing transparency and competition in gas markets. Further, with approval of gas futures linked to GIXI to NSE will further strengthen the ecosystem by offering structured tools to manage price risk and plan with greater certainty as India’s gas economy expands,” said the IGX MD.
Alongside market reforms, IGX announced capability-building and digital initiatives aimed at deepening participation and improving operational efficiency. These include a mobile application for real-time market access, the IGX Academy for market education, and a Gas Management System designed to streamline allocations, nominations and coordination across the gas value chain.
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The exchange also highlighted key takeaways from PNGRB’s Vision 2040 – Natural Gas Infrastructure in India report, which calls for market-driven pricing, removal of destination and resale restrictions in LNG contracts, transparent third-party access to pipelines and terminals, and the creation of institutional mechanisms such as an Independent System Operator to enable gas-on-gas competition and support the emergence of a national gas trading hub.
