Intercontinental Exchange (ICE) has launched West India Marker (WIM) liquified natural gas (LNG) futures contracts. WIM will reflect the cargos delivered at Indian and West Asian ports.
The financially settled futures contract, ICE said, will settle against the S&P Global Platts daily assessment price for the WIM for spot physical LNG cargoes delivered at ports in India, Dubai and Kuwait.
“WIM provides the link between the global LNG market and the value of gas further downstream in India, as well as the anchor for the trading of spot LNG cargoes in South and West Asia,” ICE said in its statement.
ICE is an operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services.
"WIM LNG futures would be part of ICE’s global natural gas complex alongside TTF, NBP, Henry Hub, and JKM LNG (Platts) futures. JKM reflects cargoes delivered into ports in Japan, Korea, Taiwan and China, while the WIM reflects cargoes delivered into the ports of India and the Middle East. WIM futures will complement the already established North East Asian JKM contract," said Gordon Bennett, managing director, Utility Markets at ICE. Bennett added, “The natural gas market is evolving rapidly and WIM provides new risk management tools to those buying, selling and hedging natural gas in South and West Asia."
The Indian government plans to increase the share of natural gas in its energy mix to 15 per cent by 2030, from the present 6 per cent. “LNG is expected to remain a key component of India’s gas consumption as the government aims to boost its share in the energy mix amid dwindling domestic gas production,” ICE added in its statement.
ICE also said Asia plays a fundamental role in global natural gas price formation and the launch of WIM futures adds another significant milestone in the liberalization of natural gas markets east of Suez.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU