ICE Introduces JKM LNG, Freight Futures, and UK Electricity Options
Expansion of Global Gas and Power Markets
SINGAPORE, Sept 28 (Reuters) - The Intercontinental Exchange 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.
JKM LNG Options
Managing Asian Gas Price Risk
• 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.
JKM Benchmark Overview
• The JKM, or Japan-Korea Marker, is the benchmark for spot liquefied natural gas cargoes in Asia.
LNG Balmo Freight Futures
Balance of the Month Settlement
• 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.
UK Base Electricity Options
Managing Price Risk in Power Markets
• 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.
(Reporting by Emily Chow; Editing by Alexandra Hudson)