ICE launches new LNG, freight and UK power derivatives
ICE•Intercontinental Exchange launched JKM LNG options, LNG balance-of-month freight futures and UK base electricity options. The products are intended to help customers manage price and transport-cost risk.
1. New energy contracts
ICE said it launched JKM LNG (Platts) options, LNG balance-of-month freight futures and UK base electricity options, expanding its global gas and power markets. The JKM options target Asian gas price risk at a specific point in time and complement existing options used to manage exposure accumulating over a month.
2. Freight and power risk
The LNG freight futures settle against the average price for the rest of the month. ICE offers Spark30S Atlantic Sabine Pass to Gate and Spark25S Pacific NWS to Tianjin contracts, based on assessments published by Spark Commodities, to help customers manage transportation costs. The new UK base electricity options offer another tool for managing price risk as renewables and gas-fired generation widen the range of possible power prices.
