LNG

Intercontinental Exchange, the leading global provider of market platforms for energy futures and options and other assets, intends to implement the European Union’s Market Correction Mechanism Regulation (MCM Regulation) and related price cap on Dutch Title Transfer Facility (TTF) natural gas derivatives, in time for entry into force of the regulation, though it is also planning a London-based TTF trading alternative.

Intercontinental Exchange, the leading global provider of trading platforms and clearing, said December and fourth-quarter average daily volumes of traded derivatives contracts surged for the European natural gas and LNG benchmark, the Dutch Title Transfer facility.

The popularity of the Dutch Title Transfer Facility (TTF) price for European natural gas and LNG values in the week that saw the price hit a 2021 high of $10.22 per million British thermal units has also led the Intercontinental Exchange to extend the forward curve for TTF futures to December 2031.

Intercontinental Exchange, the leading global provider of trading platforms and clearing, has posted record activity in two key LNG trading derivatives, the European benchmark Dutch Title Transfer Facility (TTF) and the Japan-Korea Marker for North Asian spot cargoes.

Intercontinental Exchange, the leading US operator of global exchange platforms and clearing houses, said the LNG freight futures contracts based on Spark Commodities price assessments had a successful launch with 30 lots traded on the first day.

Intercontinental Exchange, the leading operator of global energy derivative exchanges and clearing houses, is planning to launch its oil future contract for liquefied natural exporter Abu Dhabi on March 29, backed by leading LNG sector players.

The exchange said that that trading on the ICE Murban Crude Oil Futures (IFAN) is going ahead subject to the completion of regulatory approvals

The IFAN futures debut in the markets had been delayed in 2020 by the market oil market slump and the Covid-19 pandemic.

“We are making good progress on securing the regulatory approvals necessary for launch. We have received approval from the Bank of England for ICE Clear Europe to clear contracts traded on IFAD and IFAD is now a Recognized Market Operator by the Monetary Authority of Singapore,” explained Jamal Oulhadj, President of ICE Futures in Abu Dhabi.

“We believe that the combination of our partners, ICE’s extensive global energy network and customer base, and the capital efficiencies created by clearing Murban alongside Brent, West Texas Intermediate, and Dubai, mean that Murban futures should have a deep base of support as the market uses the futures to buy, sell and hedge Murban crude,” added Oulhadj.

The Murban Crude Oil Future is a physically delivered contract, basis free-onboard (FOB) cargo at the Fujairah loading terminal in the UAE.

The contract will provide users with an effective hedging instrument for Arab Gulf crude oil and other grades of trading into the Asia-Pacific region.

Abu Dhabi also produces LNG as well as oil for the United Arab Emirates and is aiming to increase its natural gas resources by investing more in exploration and production in the next few years.

It currently produces around 5.8 million tonnes per annum of LNG at the Das Island liquefaction plant off Abu Dhabi.

In addition to the approvals from the Bank of England and Monetary Authority of Singapore, ICE Futures Abu Dhabi said it had completed the relevant regulatory processes or analysis required to permit direct access to IFAD from a range of jurisdictions including Abu Dhabi Global Market, the United States, Switzerland, the Netherlands, France, Norway, Australia, Japan and South Korea.

Contracts traded at IFAD will be cleared at ICE Clear Europe, a leading energy clearing house, and will clear alongside ICE’s global energy futures platform covering oil, natural gas and the environmental complex, allowing customers to benefit from associated margin offsets.

Inpex Corp., the Japanese oil and gas company with stakes in major LNG export plants and projects such as Ichthys and Prelude FLNG in Australia and Abadi LNG in Indonesia, is one of the companies that IFAD venture.

The other energy companies joining the launch of IFAD include Royal Dutch Shell, BP of the UK, PetroChina, Total, PTT of Thailand, Japan’s JXTG Nippon Oil & Energy and the international commodities traders Vitol.

Oct 13 (LNGJ) - Intercontinental Exchange, a leading operator of global exchanges and clearing houses and provider of energy data for LNG and natural gas prices and futures, has provided an update on its plans to launch ICE Futures Abu Dhabi (IFAD), the world’s first futures contracts based on Murban crude oil from the United Arab Emirates. “Subject to the completion of regulatory approvals, ICE plans to launch IFAD and trading in Murban futures contracts late in the first quarter of 2021. A more specific date for the launch of trading will be announced in due course,” stated the Atlanta, Georgia-based company.

   In November 2019, ICE announced its plans to launch IFAD, with the Abu Dhabi National Oil Company and nine of the world’s largest energy traders partnering with ICE on the launch. ICE Murban Futures will be a physically delivered contract with delivery at Fujairah in the UAE on a free-on-board (FOB) basis. ICE Murban Futures will be complemented with a range of 18 cash-settled derivatives which IFAD plans to launch for day one of trading.

Intercontinental Exchange, the leading operator of global exchanges and clearing houses and energy and natural gas pricing and derivatives, said the Dutch Title Transfer Facility, the main Continental European natural gas benchmark, and the Asian Japan-Korea Marker price for LNG had achieved new trading volume highs.

The Singapore Exchange (SGX) and Energy Market Company (EMC) are to discontinue the publication of the prices and indices for spot LNG cargoes for Southeast Asia, North Asia and Dubai, Kuwait and India.