CHICAGO, Sept. 4, 2019 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced its new liquefied natural gas (LNG) futures contract –
U.S. LNG Export futures – will be available for trading on
October 14, 2019, pending regulatory
review.
U.S. LNG Export futures will be the first-ever physically
delivered LNG contract. Participants will take delivery at Cheniere
Energy's Sabine Pass facility. The
Freeport LNG terminal and additional facilities will be
included in future delivery months.
The new LNG futures contract expands CME Group's already robust
suite of global natural gas futures and options and will complement
the world's leading gas benchmark Henry Hub Natural Gas
futures.
"Working very closely with commercial customers and industry
participants in the LNG market, we are pleased to launch this new
LNG futures contract that offers participants a truly unique global
risk management tool," said Peter
Keavey, CME Group Global Head of Energy. "This contract is
structured to align with the complex logistics of the LNG markets,
including a unique monthly physical settlement on the U.S. Gulf
Coast. At a time when the United
States is poised to become a significant source of freely
traded LNG cargoes, we believe CME Group's LNG and Henry Hub
Natural Gas futures will help the industry to more effectively and
efficiently manage price risk around the world."
"As the first source of large-scale US LNG, it is fitting that
Cheniere's Sabine Pass LNG facility will also be the first delivery
location for this innovative LNG futures contract. This futures
contract will allow for enhanced short-term price discovery and
risk management for the U.S. Gulf Coast market. These are
important commercial evolutions for our customers and for the
broader global natural gas market," said Anatol Feygin, Chief Commercial Officer and
Executive Vice President for Cheniere.
According to the International Energy Agency (IEA), by 2024,
the United States will surpass
Australia and Qatar as the world's largest exporter of LNG.
Additionally, the IEA anticipates U.S. LNG exports to exceed 100
billion cubic meters (bcm) in the next five years. Global LNG
demand is predicted to grow 4% annually, after reaching a record
432 bcm in 2018, driven by growth in the Asia Pacific region.
"As the world's largest buyer of LNG, we believe diverse risk
management tools bring more transparency to the marketplace and we
welcome CME Group's launch of physically delivered LNG futures,"
noted Kazunori Kasai, Chief Executive Officer of JERA Global
Markets Pte. Ltd. "We expect CME Group's U.S. LNG Export futures
contract will have a positive impact on the procurement and price
discovery of LNG in Asia, as well
as in the U.S."
U.S. LNG Export futures will be available for trading on
CME Globex, for submission for clearing through CME ClearPort, and
will be listed with and subject to the rules and regulations of
NYMEX. For more information, please visit
www.cmegroup.com/LNG.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
CME-G
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SOURCE CME Group