Singapore Exchange (SGX) and broker Tullett Prebon have launched an LNG spot index for Dubai, Kuwait and India (known as the DKI Sling), which should enhance price discovery and risk management in one of the fastest-growing regions for LNG spot trading, according to SGX.
“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.
The new offering will seek to provide an independent physical price marker as the industry moves away from oil-linked pricing and towards independently determined or gas-linked 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.