Vitol, Trafigura agree first JKM LNG derivative contract on Platts eWindow
LNG trading firms Vitol and Trafigura have agreed the first LNG derivative spot deal on the Platts Editorial Window, or eWindow, on July 16, after the online data-entry platform was launched for the Asia LNG derivatives market last month.
Trafigura submitted an offer of 25 lots for the October JKM contract at $3.45/MMBtu, which was traded by Vitol. There were also four offers and two bids for the September and October contracts submitted by Glencore, BP and Vitol on the same day.
Three out of the four physical cargo bids and offers published during the MOC process on the day were made on a JKM-linked basis.
The Platts eWindow, which was launched on June 26, is an online data-entry and communications tool which brings greater speed, transparency and efficiency to the Market on Close (MOC) price assessment processes.
The tool’s compatibility with Intercontinental Exchange (ICE) technology allows users to execute trades on the ICE platform without leaving the Platts MOC environment.
The first LNG derivative eWindow trade follows significant growth in JKM-linked bids, offers and trades in the spot market, as well as a robust increase in JKM LNG derivatives volumes cleared on financial exchanges over the past two years.
JKM LNG derivative trading volumes cleared on ICE and the Chicago Mercantile Exchange (CME) in the first half of the year rose 83% year on year to 78.8 million mt, or 409,875 lots, according to exchange and broker data.
Open interest at the end of June also hit a record monthly high, with 94,734 lots recorded.
JKM derivatives cleared on ICE made up 96% of total open interest. Last year was a record trading year for LNG derivatives, with 107 million mt cleared on both exchanges.