BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

IF you are a Platts Market Center subscriber, to reset your password go to the�Platts Market Center to reset your password.

In this list
Natural Gas

ICE to launch first ever US LNG futures contract

Natural Gas | Natural Gas (North American)

Market shrugs as natural gas storage lags in US Midwest

LNG | NGL

Platts LP Gaswire

Natural Gas | LNG | Oil | Crude Oil | Refined Products | Petrochemicals

Platts Workshop at the S&P Global Platts Energy

Natural Gas

Mexico considering new entity to develop country's gas reserves

ICE to launch first ever US LNG futures contract

Highlights

To be settled against Platts assessments

Will enable market participants to hedge

US LNG export capacity set to rise quickly

The Intercontinental Exchange is to launch the first ever US LNG futures contract in May this year, it said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

In an exchange note to customers, ICE said it planned to list the new contract on May 4, subject to completion of necessary regulatory processes.

US LNG supplies are set to grow quickly in the coming years, turning the country into a leading global supplier of destination-free, flexible LNG.



The new ICE contract, whose size will for 2,500 MMBtu, will be a monthly cash future settled against the Platts LNG Gulf Coast Marker price assessment.

"By providing the marketplace with a US Gulf Coast LNG futures contract, along with the prospect of future additional products, domestic and international market participants now have a risk management solution that lays the foundation for a more effective means of hedging their spot and forward exposure," vice president, North American power and natural gas markets, J.C. Kneale said.

Such a tool, Kneale said, would be "particularly useful as the global LNG market continues to evolve and grow."

Only one LNG export facility is currently operational in the US, the Cheniere Energy-operated Sabine Pass terminal, but a number of other plants are due to start up in the coming years.

US LNG production capacity is expected to rise to some 70 million mt/year by 2020, making it the world's third largest LNG exporter after Qatar and Australia.

US LNG exports are expected to have largest volume of flexible-LNG by 2020, with short-term trading of LNG set to increase in the coming years.

At present, the only operational plant at Sabine Pass has two 4.5 million mt/year trains currently exporting, with a third set for substantial completion by the end of this month.

Cheniere began US LNG exports from Sabine Pass in February last year and has loaded around 90 cargoes since then.

Its contracts allow for LNG to be sent to any destination and its pricing mechanism is transparent, which the company says should allow the creation of additional liquidity.

--Stuart Elliott, stuart.elliott@spglobal.com

--Edited by Jonathan Dart, jonathan.dart@spglobal.com