Natural Gas Futures & Options Expiry 2026

Natural gas expiry refers to the date on which the futures or options contract between the buyer and seller (at a specific price) for the commodity expires. Here is a guide to the same below. 

What is Natural Gas Futures & Options Expiry?

The expiry of natural gas futures and options contracts refers to the date on which these agreements between buyers and sellers (at predetermined prices) expire. Natural gas futures contracts expire three business days before the first calendar day of the delivery month. Traders may enter or exit their positions at any time up to one day before the expiry date in the physically delivered contract. 

Natural gas options contracts are agreements that give buyers the right, but not the obligation, to buy or sell a specified quantity of the commodity at a predetermined price on or before the expiration date. They are derivatives, i.e. instruments whose value derives from the underlying natural gas market. The options expiry indicates the date on which the contract is no longer valid and cannot be traded. 

On this date, any outstanding ITM or in-the-money options contracts are settled, usually through devolving into an equivalent futures contract. If the option is not closed before expiry, it may require physical delivery of natural gas, which is impractical for many traders. In this context, there is the option to rollover commodity contracts. Traders may use this route to roll over positions by closing their current contracts and opening new ones with later expiry dates. 

Natural Gas Futures Expiry 2026

Here is the list of the MCX natural gas futures expiry for 2026 (1,250 MMBtu) -

(Natural Gas January 2026 Contract Onwards)

Natural Gas Options Expiry 2026

Here is the list of the MCX natural gas options expiry for 2026 -

(Natural Gas (1250 MMBTU) Options January 2026 Contract Onwards)

Factors That Can Affect Natural Gas Prices at Expiry

Several factors influence natural gas prices at expiry. These include: 

• Demand & Supply
  Natural gas prices are significantly influenced by demand and supply dynamics. Higher demand relative to supply leads to higher prices. On the other hand, a higher supply relative to demand leads to lower prices. 
• Weather Conditions
  Extreme weather conditions, such as scorching summers or chilly winters, may affect demand. Cold weather requires heating, while hot conditions necessitate cooling. This affects natural gas consumption by power plants. 
• Storage Levels
  The amount of natural gas stored may also affect prices. Higher storage levels may indicate oversupply and lead to lower prices. At the same time, lower storage levels may indicate scarcity and push prices higher. 
• Economic Scenario
  A robust economy usually generates higher industrial activity and demand for natural gas. On the flipside, economic downturns may lead to lower demand for the commodity. 
• Global Developments
  Trade policies, geopolitical events, and international relations may also affect natural gas prices. For instance, any supply disruption from a major producing country or changes in import/export policies may affect the balance between demand and supply. 
• Prices of Other Fuels
  If prices of alternative fuels like coal and oil rise, demand for natural gas may increase, thereby affecting its prices. 
• Speculation
  Speculative trading may also affect prices, particularly around contract expiry. Traders may forecast future price movements based on their expectations, which can increase volatility. 
• Liquidity
  The open interest (number of outstanding contracts) level near the expiry date may also affect price volatility. Lower liquidity may lead to greater price fluctuations. 
• Currency Fluctuations
  Changes in exchange rates may also affect prices, particularly for globally traded natural gas. 
• Infrastructure & Production
  Changes in production levels, storage infrastructure, pipeline capacity, etc., may affect natural gas supply. This, in turn, affects commodity prices.