Settlement of commodity options

Commodities
1

Currently Natural gas is trading around 600 levels
I am holding short positions in
700 CE
500 PE

Both are OTM options. Currently trading @ 0.1

I have huge positions and even if I close @ 0.05, I will lose around 20k

If I allow it to expire, Will it be cash settled? Is there any difference from FNO equity options? BTW, today is the expiry day

2

Since, it is OTM, it will expire worthless.

If it comes ITM by EOD, the options will be converted into a futures contract of September expiry.