ICE Expands Natural Gas and Power Markets with New Contracts

Intercontinental Exchange (ICE) has expanded its global natural gas and power markets by launching new contracts on its platform. The company introduced JKM LNG options, also known as JKZ, which complement ICE's existing JKM average price options. These new options give customers a way to manage Asian natural gas price risk at a specific point in time.

The new U.K. base electricity options provide another tool for customers to manage price risk associated with the production and consumption of power. Additionally, ICE launched LNG Balmo freight futures on two named routes: the Spark30S Atlantic Sabine Pass to Gate contract and the Spark25S Pacific NWS to Tianjin contract.

Gordon Bennett, Managing Director of Utility Markets at ICE, said that these new contracts provide additional ways to manage price risk associated with the production, transportation, and consumption of natural gas and power. He noted that ocean tankers act as a virtual pipeline connecting JKM and TTF pricing, and LNG freight contracts let customers manage the cost of transporting molecules more precisely.