Multi Commodity Exchange of India Ltd has emerged the second largest Natural Gas Exchange globally, next to New York Mercentile Exchange.
The Exchange launched its Natural Gas futures for trading on July 10.
Within two months of its launch, the traded lots have reached over 5.46 lakhs, which is 25 per cent of NYMEX volume, the exchnage said in a release in Mumbai on Wednesday.
The number of participants has also increased to 514 per day in August from 250 per day in July while the daily average turnover of natural gas futures at MCX platform has increased to Rs 436.91 crore (Rs 4.36 billion) in August from Rs 103.30 crore (Rs 1.03 billion) a month ago.
"In a scenario where gas supplies are increasingly becoming more inclined towards benchmarking domestic prices on the basis of international market, MCX has provided
"Natural gas demand in the country is expected at 166 metric million standard cubic metres (mmscmd) per day against domestic supply of 98 mmscmd, leaving a huge gap, which needs to be filled with large imports at international rates," Mahanagar Gas Limited (MGL) VP-commercial Rajesh Wagle said.
Looking at the liquidity in the market, several distribution companies have started to look at the option of buying natural gas on the Henry Hub or crude oil price basis.
India is currently importing natural gas from various origins and it is around 22 per cent of the domestic consumption.
This figure is likely to grow to 33 per cent by 2010-2011.
Do you want to discuss stock tips? Do you know a hot one? Join the