PEGAS, the pan-European gas trading platform of EEX Group, operated by Powernext, has successfully launched its OTC registration service for LNG Futures.
The PEGAS JKM LNG Futures contract is cleared by ECC, the clearing house of EEX Group, and settled against the S&P Platts JKM assessment, today’s most reliable price estimation for the Asian region.
The contract, settled in USD, is offering a delivery period for the next 34 months with a contract size of 10,000 MMBtu/month. By adding LNG to their portfolio, customers will be able to benefit from a range of cross margining advantages at ECC.
The launch of the PEGAS JKM LNG contract comes at a time when European utilities are increasingly relying on global LNG imports to satisfy local demand, particularly in countries who have already committed to phasing out coal and nuclear power. This instrument will then help European
energy companies hedge their risk to price shifts in global LNG markets.
“The launch of our JKM LNG contract represents a key strategic milestone for both PEGAS and EEX Group as global players in the exchange space,” says Dr Egbert Laege, President of Powernext and CEO of EEX Asia, EEX Group’s Asian commodity exchange. “Asia is the most important region for LNG in the world today and there is still huge potential to further develop this market in the region. With this new offering, we will answer the need of LNG traders to hedge their price risk in the Asian area.”