ICE sees TTF, JKM gas indices as global benchmarks

Intercontinental Exchange (ICE) said June 3 the record amount of activity in the Dutch Title Transfer Facility and Japan Korea Marker indices has set them up as global references for the price of natural gas.

ICE found the number of participants in the Title Transfer Facility (TTF) increased 83% over the four-year period ending in 2020. The 1.94mn contracts on May 26 set a record and marked a 21% increase over the same period from last year.

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“The strong growth in trading activity and participation in the ICE TTF contract reflects how TTF is being used as a global gas benchmark,” the listing service said. 

For the Japan Korea Marker (JKM), ICE found trading activity increased 25% in May, y/y, and the open interest of 108,210 contracts from May 13, a record, was 10% higher than the same period last year.

“The increased utilisation of JKM by participants in East Asia is a key milestone in the maturity of the LNG market and reinforces the position of the ICE JKM contract as a key benchmark for natural gas in the region,” Gordon Bennet, the managing director of utility markets for ICE, said.

ICE’s recognition of the importance of the benchmarks came the same day that US-LNG company Tellurian signed a 10-year supply agreement with Vitol for its planned Driftwood export facility in Louisiana based on a combination of TTF and JKM.

Tellurian plans to market up to 10mn mt/yr of LNG supply from the first 16.5mm mt/yr phase of Driftwood, which could be operational by 2025.