ICE to offer first U.S. Gulf Coast LNG futures contract
The new contracts will begin trading in May. The exchange is rolling them out as growing LNG exports propel the U.S. transition from a net importer of gas to a net exporter of the fuel, which is expected to happen later this year or in 2018.
ICE said the contracts will be cash-settled against the Platts LNG Gulf Coast Marker (GCM) price assessment and use Platts-derived U.S. GCM LNG forward curves for daily settlement purposes. The curves will have an initial tenor of 48 months.
"Domestic and international market participants now have a risk management solution that lays the foundation for a more effective means of hedging their spot and forward exposure," said J.C. Kneale, vice president, North American power and natural gas markets at ICE, in a statement. ■