The National Stock Exchange (NSE) will launch India’s first domestic benchmark-based natural gas futures on July 27, 2026, marking a new step for the country’s energy derivatives market. The contract, called NATGASIND, will give Indian buyers and sellers a local price tool instead of depending only on global gas benchmarks.
The new futures contract will be cash-settled and linked to natural gas prices at the Indian Gas Exchange’s Gujarat Dahej hub. Each contract will cover 250 mmBtu, and prices will be quoted in rupees per mmBtu on a gross calorific value basis.
This launch matters because natural gas prices can move sharply due to supply changes, import costs, and global market swings. With a domestic benchmark, producers, distributors, traders, and large industrial users can hedge price risk more efficiently in the Indian market.
NSE has received approval from the Securities and Exchange Board of India, or SEBI, for the launch. The exchange will introduce monthly contracts, and the first set will run from August 2026 to July 2027, with later contracts extending the maturity profile further.
Trading will begin on the commodity derivatives platform, and NSE Clearing will handle settlement and risk management. The final settlement price will be based on the monthly weighted average of actual deliveries on the Indian Gas Exchange during the contract month, excluding certain special transactions.
Analysts see this as an important milestone because it could improve price discovery in India’s gas market and reduce dependence on foreign pricing signals. It also adds another energy-linked product to NSE’s commodity segment at a time when India is pushing for stronger domestic market infrastructure.
FAQs [Frequently Asked Questions]
1. What is NATGASIND?
NATGASIND is NSE’s new natural gas futures contract based on domestic Indian gas prices, designed for hedging and transparent price discovery.
2. Why is this launch important?
It gives India a local benchmark for gas trading, helping market participants manage price risk without relying only on global indices.
3. How will the contract settle?
It will be cash-settled using the monthly weighted average price of actual deliveries at the Indian Gas Exchange’s Dahej hub.