LNG futures traded volume, end-month open interest reach 3-year high in Sep

The total traded volumes for the JKM full-month and the JKM balance-month next-day futures cleared on Intercontinental Exchange rose 45.39% on the month and 39.53% on the year to a three-year high of 95,630 lots in September, according to exchange data.

This is equivalent to approximately 18.39 million mt, or 290 LNG cargoes.

The previous high was recorded in September 2021, when the total traded volumes reached 96,506 lots.

The rise in traded volumes could be attributed to higher volumes recorded for Summer 2025 and Winter 2025 contracts amid escalating geopolitical tensions in the Middle East and Europe, an LNG broker said.

“August was quieter than usual, so may be more people were coming out of the woodwork,” the broker added.

The JKM LNG balance-month next-day futures continued to see healthy activity with the traded volumes reported during the Platts derivatives Market-On-Close assessment process totaling 2,760 lots in September.

The open interest for the JKM LNG futures and JKM LNG balance-month next-day futures reached 121,284 lots as of Sept. 30, up from 110,656 lots in the previous month, according to exchange data.

Some 119,972 lots of open interest for the JKM LNG futures were recorded and 1,312 lots of open interest were recorded for the JKM LNG balance-month next-day futures.

Meanwhile, the margin rate for the front month contract was reported at $11,418.70, according to ICE, as of Sept. 30.

JKM LNG option trading continued to see a rise in activity in September with traded volumes at 2,290 lots, up 28.60% on the month. The end month open interest stood at 13,970 lots in September, up 1.18% on the month.

Asian LNG spot prices in September hovered in a narrower range, due to geopolitical uncertainties in Europe and abundant supply in Asia. The Platts JKM was rangebound in September with prices ranging between high $12/MMBtu to mid-$13/MMBtu, as compared to a wider range seen in August between high $12/MMBtu and low $14/MMBtu.

Sufficient supply in Asia and high prices dampened buying interest by the end of September, while market participants anticipate delays in winter procurement due to a longer summer this year, according to Asian sources.

Buying interest within the Asia Pacific region remained tepid as the market experiences the shoulder season where power demand is typically low.

Moreover, price-sensitive buyers such as China deemed Asian spot LNG prices too high to trigger buying activity, with several market sources noting that bid levels remained at $12/MMBtu level.

An uptick in spot buying activity was seen as the Platts JKM prices fell to the high-$12/MMBtu level at various times during the month, which resulted in a rise in trade discussions among Chinese buyers.

Meanwhile, geopolitical tensions between Russia and Ukraine resulted in an uptick in the JKM prices in early September amid uncertainties loomed among market participants. Concerns over European pipeline gas disruptions affected Asian prices seen in September, with the Platts JKM at it’s month highest at $13.996/MMBtu Sept. 2.

The Platts JKM was lower on the month, with the average JKM price in September down 3.57% on the month at $13.219/MMBtu.

Platts is part of S&P Global Commodity Insights.