Paris-based Powernext, the EEX Group gas activities manager, is set to introduce financially-settled LNG contracts on its trading platform PEGAS.
In its statement, Powernext added this will expand its European offering for spot and futures gas trading with a globally traded commodity.
The new LNG products shall be introduced in February 2019 and will be settled against the Platts JKM assessment published by S&P Global Platts.
In recent years, the market for liquefied natural gas (LNG) has grown significantly and Platts JKM has also grown in relevance, both in Asia and Europe, enabling Powernext to offer a standardized product, the company’s statement reads.
Platts JKM reflects the supply and demand situation in Asia. Together with TTF in Europe, traders will be able to hedge their cargos and optimize their portfolios.
Powernext already offers futures and options for the TTF hub, so that the corresponding hedging transactions can be carried out via the PEGAS platform for up to two years in advance.
“Liquidity in Asia has increased in the last years and Platts JKM is today the most reliable assessment for this region. We are confident that we will see further development and even more trading activity in the future,” said Aude Filippi, responsible for growth initiatives at Powernext.
Together with TTF in Europe, traders will be able to hedge their cargos and optimize their portfolios.