ICE launches new LNG, freight and UK power derivatives

By Reuters News

SINGAPORE, Sept 28 (Reuters) - The Intercontinental Exchange ICE.N announced the launch of new JKM LNG (Platts) options, LNG Balmo freight futures, and UK base electricity options, in an expansion of its global gas and power markets, the exchange said in a statement on Monday.

  • The new JKM LNG options aim to give customers a way to manage Asian gas price risk at a specific point in time. They will complement ICE's existing JKM LNG (Platts) average price options, which are used to manage exposure that accumulates over the month.

  • The JKM, or Japan-Korea Marker, is the benchmark for spot liquefied natural gas cargoes in Asia.

  • ICE's new LNG Balmo (balance of the month) freight futures will settle against the average price for the remaining part of the month. ICE offers the Spark30S Atlantic Sabine Pass to Gate contract, and the Spark25S Pacific NWS to Tianjin contract, to let customers manage the cost of transporting those molecules more precisely, it said. The contracts are based on the assessment published by Spark Commodities.

  • ICE also launched new UK base electricity options, giving customers another tool to manage price risk as renewables and gas-fired generation widen the range of possible power prices.

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