LNG Freight
Liquified Natural Gas (LNG) Freight
Seaborne trade of liquified natural gas (LNG) is a rapidly growing sector in the global seaborne freight market. LNG freight rates can be extremely volatile, rallying or declining by thousands or even tens of thousands of dollars in days.
This level of unpredictability means that financial derivatives are an essential tool for any organisation with exposure to LNG shipping rates. EEX offers three LNG freight futures products to help customers manage price risk in this market from 25 November 2024.
Each of the products are monthly expiry futures which are financially settled against the respective Baltic Exchange BLNG-174 index. Detailed specifications for these futures contracts can be found here.
Contract Specifications*
| Product Description | Monthly financially settled futures based on the respective Baltic Exchange BLNG-174 Index: BLNG1-174 (Australia to Japan) BLNG2-174(US Gulf to Continent) BLNG3-174 (US Gulf to Japan) |
| Contract Size | 1 day |
| Pricing | USD per day |
| Price Tick | 1.00 USD per day |
| Last Trade Registration Day | For January to November: Last Exchange Day of the respective expiry month. For December: The 24th day of the expiry month or, if this is not an Exchange Day, the preceding day. |
| Final Settlement Price | The monthly price index for the respective BLNG-174 freight assessment (Index). The Index is the arithmetic average of all spot price assessments for the respective BLNG-174 freight assessment of the respective month as published by the Baltic Exchange. |
*available from 25 November 2024
For further information on these contracts please contact globalcommodities@eex.com.