LNG, CME launches first futures contract with physical delivery

“To help industry manage risks more effectively and efficiently”

LNG futures with physical delivery are will be available on international trading markets. CME Group has actually announced launching on October 14 this year of “US LNG Export future,” the first product of this type ever offered in the market.
A message specifies that in the beginning buyers will take delivery of the new product at Cheniere Energy’s Sabine Pass facility. However, the Freeport LNG terminal and additional facilities will be part of future delivery months.
When commenting the roll-out of the “US LNG Export future,” which is one of numerous gas derivatives and options offered by CME Group Global, Head of Energy of the trading platform based in Chicago, Peter Keavey, explained that “at a time when the United States is poised to become a significant source of freely traded LNG cargoes, our LNG and Henry Hub Natural Gas futures will help the industry to manage risks more effectively and efficiently.”
Based on the projections of the International Energy Agency, in 2024 the U.S., with over 100 billion m3, will surpass Australia and Qatar as the world’s largest exporter of LNG. 

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06 September 2019 - 15:01 CEST