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

Singapore Exchange (SGX) and Tullett Prebon have successfully launched a liquefied natural gas (LNG) spot index for Dubai, Kuwait and India (DKI). 

A statement said it is: “a collaboration that seeks to enhance price discovery and risk management in one of the fastest-growing regions for LNG spot 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.

“First introduced in January for launch during the second quarter, it provides 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, as the index administrator, will publish the DKI Sling every Monday and Thursday. The new index was developed with London-based Tullett Prebon. The first print on 30 March was $5.421/mmBtu.

Michael Syn, head of derivatives at SGX, said: “We are pleased to collaborate with Tullett Prebon as we expand our suite of LNG indices beyond Asia.

“The DKI Sling aims to improve benchmarking and risk management in the Middle East and India region, meeting the specific needs of the physical LNG market as it evolves.”

Melissa Lindsay, global head of LNG at Tullett Prebon, said: “SGX and the methodology behind the Sling indexes are already highly regarded by the industry, so we think this is the ideal partnership for establishing a credible regional price.

“This can subsequently be used as an underlying index in physical and financial trades.”

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