PNGRB approves IGX platform for unused LNG regasification capacity

The Petroleum and Natural Gas Regulatory Board (PNGRB) has granted approval to the Indian Gas Exchange (IGX) to establish a voluntary trading platform for listing and booking spare liquefied natural gas (LNG) regasification capacity. The move is designed to enhance utilisation of existing infrastructure while creating fresh opportunities for market participants seeking access to regasification services.

Under the new framework, LNG terminal operators and capacity holders will be able to list their unused regasification slots on the IGX platform, allowing prospective users to identify and reserve available capacity according to their operational needs. The initiative responds to persistent underutilisation at several Indian LNG terminals, which have remained below optimal capacity levels despite growing gas demand across industrial and power generation sectors.

Regasification—the process of converting LNG transported in its liquid state back into gaseous form for delivery through pipeline networks—is a critical service in India's gas supply chain. By offering a transparent and competitive marketplace for this service, the platform is expected to improve price discovery mechanisms while enabling terminal operators to monetise idle capacity through competitive pricing.

The PNGRB's approval reflects the regulator's commitment to deepening market participation and improving the efficiency of India's natural gas infrastructure. Analysts say the initiative could help attract additional LNG cargoes to domestic terminals and support the government's broader objectives of expanding gas availability across key consumption centres.