A first trade has been concluded on European Energy Exchange (EEX)’s new LNG freight futures contract on its launch day.
Leipzig-based EEX said shipbroker Clarksons brokered a Cal25 trade on the EEX Baltic BLNG2- 174 US Gulf to Europe contract.
In total 120 lots were traded, EEX said.
EEX senior business developer Peter Blogg told TradeWinds: “We are very pleased with the positive response to the launch of EEX LNG Freight futures.
“Customer feedback suggested that the market required contracts based on the Baltic Exchange BLNG-174 indices with a European clearing solution.”
Blogg said: “The exchange has delivered this solution and, with significant volumes traded on the first day, we expect that the market will continue to evolve as demand for LNG freight hedging increases in line with the significant projected growth of the global LNG carrier fleet.”
EEX announced in October that it would be adding new freight futures and options contracts for both LNG and dry freight.
On LNG it has added the Baltic LNG 174 Freight Month Futures for three intercontinental routes.
It said the big increase in the fleet, growing production and expected demand will create more appetite for products to hedge risk.
The Exchange already offers the JKM LNG Natural Gas Futures and the recently launched TTF Futures which is denominated in US Dollars which it launched in April 2024.
EEX has also launched trading of the new Baltic Supramax 11TC Freight Month Future along with the Baltic Supramax and Capesize Month Options for various routes.
All contracts will be cleared in Europe via the European Commodity Clearing (ECC).
