IntercontinentalExchange Announces Upcoming Launch of New LNG Cleared Swap on the Japan Korea Marker

IntercontinentalExchange ICE today announced it will launch a new liquefied natural gas (LNG) cleared swap contract based on the Platts* daily assessment for the Japan/Korea Marker (JKM). The Platts JKM, introduced in 2009, reflects the daily open-market value of spot LNG delivered to Japan and South Korea on a daily basis. It has since become a benchmark reference in the industry for calculating price differentials for Asia-Pacific supply source and destination markets and is increasingly used in outright contract pricing. The new cleared swap contract, which is subject to regulatory approval and non-objection, will be cash settled on a monthly basis in U.S. Dollars and available from August 2012. The contract size will be 10,000 Million Metric British Thermal Units (MMBtu) and 24 consecutive contract months will be available.