Volumes of gas traded on Indian Gas Exchange surge amid demand from power plants

  • So far in May about 49 lakh mmBtu has been traded on the exchanges, nearly six times more than 8.5 lakh mmBtu in May last year, according to IGX data.

Rituraj Baruah
Published31 May 2024, 08:12 PM IST
In April, the trading volumes on the IGX stood at 24.8 lakh mmBtu. (Bloomberg)
In April, the trading volumes on the IGX stood at 24.8 lakh mmBtu. (Bloomberg)

In the wake of high power demand and increased operations of gas-based power plants to meet the rising demand, volumes of gas traded on the Indian Gas Exchange (IGX) increased multifold in May compared to the same period a year ago.

So far in May about 49 lakh mmBtu (million metric British thermal units) have been traded on the exchanges, nearly six times more than 8.5 lakh mmBtu in May last year, according to data from IGX.

"We have traded 49 lakh mmBtu equivalent to 1.5 LNG vessels and it is double of what we did last month. The increase in volume is largely due to power demand. Initially, there was some shortage of gas as the demand was not expected. Further demand from CGD (city gas distribution) is also increasing as the supply of APM gas is declining," said Rajesh Kumar Mediratta, MD and CEO of IGX.

In April, the trading volumes on the IGX stood at 24.8 lakh mmBtu.

Also Read: IGX, Acme to develop green hydrogen, ammonia market in India

Among other measures to ensure uninterrupted availability of power, the Union government has already directed gas-based power plants to operate at full capacity. The plant load factor (PLF) of the 62 gas-based plants which account for about 25 GW has also increased. In April 2024, the PLF of gas-based power plants stood at 21.4%, against 14.2% in April last year. PLF is the measure of a power plant's capacity utilisation. It is the percentage of energy sent out by the power plant in terms of installed capacity in that period.

Gas-based power plants have usually not been significant players in the power sector. However, the recent easing of gas prices in the international market has led to improved demand for fuel across segments including power generators.

Rising power demand

The ongoing heatwave in several parts of the country, largely northern, northwestern and central India, has led to a surge in power demand.

Also Read: Mint Primer | Into the 50s: Why heatwaves are hotter & longer

On Thursday, India's peak power demand hit an all-time high of 250 GW with the mercury surging in several parts of the country. In the national capital, temperatures have been hovering around the 50 degrees Celsius mark after breaching 52 degrees on Wednesday.

The highest temperature on Thursday was recorded at 48 degrees at Sri Ganganagar in Rajasthan, according to the India Meteorological Department (IMD).

Also Read: How India is managing power demand amid the brutal heatwave

It also said that the heatwave is likely to subside in the coming days. This would also reduce the load on power plants since power demand for cooling requirements would ease.

The southwest monsoon which arrived early in Kerala on Thursday, has advanced into parts of northwest Bay of Bengal, remaining parts of Tripura, Meghalaya and Assam and most parts of sub-Himalayan West Bengal and Sikkim, IMD said on Friday.

IGX's Mediratta was of the view that with the arrival of the monsoon demand for gas on the exchange from power generators would lessen in the days ahead.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:31 May 2024, 08:12 PM IST
HomeIndustryEnergyVolumes of gas traded on Indian Gas Exchange surge amid demand from power plants

Most Active Stocks

Tata Steel

157.75
03:43 PM | 19 JUL 2024
-8.6 (-5.17%)

Tata Power

414.15
03:59 PM | 19 JUL 2024
-15.85 (-3.69%)

Bharat Electronics

306.30
03:45 PM | 19 JUL 2024
-7.2 (-2.3%)

Zee Entertainment Enterprises

137.55
03:57 PM | 19 JUL 2024
-4.9 (-3.44%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Tata Teleservices Maharashtra

102.11
03:59 PM | 19 JUL 2024
4.68 (4.8%)

Rail Vikas Nigam

614.00
03:59 PM | 19 JUL 2024
27.65 (4.72%)

Jubilant Pharmova

752.25
03:43 PM | 19 JUL 2024
25.3 (3.48%)

One 97 Communications

458.70
03:55 PM | 19 JUL 2024
13.65 (3.07%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    76,272.000.00
    Chennai
    76,124.000.00
    Delhi
    75,533.000.00
    Kolkata
    75,089.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumBudget