ICE Reports Milestone Trading of LNG Contracts

Intercontinental Exchange, operator of global exchanges and clearing houses and provider of data and listings services,  reported new milestones in the trading of the TTF natural gas and JKM LNG (Platts) contracts.

In September, TTF Futures and Options hit an all-time monthly volume record of more than two million lots (2,023,848), equivalent to 1,484 TWh. TTF Futures set a new daily volume record on September 10 of 193,695 lots, equivalent to 142.1 TWh.

TTF is the most liquid European natural gas benchmark, followed by ICE’s UK Natural Gas Futures (NBP).

Europe’s interconnected natural gas infrastructure allows it to absorb LNG arriving on the continent and has propelled the adoption of TTF Futures and Options as risk management tools for commercial traders to manage their exposure to global natural gas price volatility. TTF volume is up 97% year-over-year, versus 1,027,977 lots in September 2018.

In Asia, LNG liberalization - driven by the surging supply of destination-free LNG from the USA - has enabled the creation of Asia’s first natural gas benchmark in the Platts LNG Japan Korea Marker (JKM).

ICE JKM LNG (Platts) Futures hit an all-time volume record in September of 55,838 lots, equivalent to approximately 180 cargoes, and hit an open interest record of 67,025 lots.

ICE JKM LNG (Platts) volume is up 323% year-over-year, versus 13,199 lots in September 2018. Open interest in ICE JKM LNG (Platts) Futures and Options is up 228% at 70,166, versus 21,397 lots in September 2018.

“The globalization of natural gas is propelling the growth of the TTF and JKM contracts into robust and distinct global benchmarks,” said Gordon Bennett, Managing Director, Utility Markets at Intercontinental Exchange.

“The momentum behind the ICE TTF contract is supported by Europe’s role as the global balancing market for LNG. This is creating a virtuous cycle of liquidity for TTF, attracting new participants and cementing its utility as a risk management tool for customers to hedge their natural gas price risk. As TTF becomes increasingly internationalized, it is evolving into a global benchmark of natural gas. At the same time, the record growth in the use of JKM Futures reflects the profound changes in the LNG industry, which is rapidly evolving and maturing,” Bennett added.