SGX, Tullett Prebon launch spot LNG index for Dubai, Kuwait and India

DUSUP’s Jebel Ali LNG import terminal in Dubai (Image courtesy of Excelerate Energy)

Singapore Exchange and London-based interdealer broker Tullett Prebon have launched a liquefied natural gas (LNG) spot index for Dubai, Kuwait and India.

The collaboration, that was announced earlier this year, seeks to “enhance price discovery and risk management” in one of the fastest-growing regions for spot LNG trading.

“The DKI Sling offers a transparent and trusted reference price for LNG Delivered Ex-Ship under flexible terms to key ports in the three countries, complementing an increase in spot trading volumes,” SGX said in a statement on Friday.

The new offering will seek to provide an independent physical price marker as the industry moves away from oil-linked pricing and towards gas-on-gas pricing.

SGX’s wholly owned subsidiary, Energy Market Company (EMC), as the index administrator, will publish the DKI Sling every Monday and Thursday. The first print on 30 March was $5.421/mmBtu.

The DKI Sling is the third in the SGX LNG Index Group or Sling series of indices.

It follows the Singapore Sling launched in October 2015, which serves as a reference point for the developing South-East Asian market, and the North Asia Sling introduced in September 2016, which delivers a price for the traditional centre of global LNG demand.