The collaboration between Singapore Exchange (SGX) and Tullett Prebon seeks to enhance price discovery and risk management in one of the fastest-growing regions for LNG spot trading.
The DKI Sling offers a 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 (EMC), as the index administrator, will publish the DKI Sling every Monday and Thursday. The new index was developed with London-based Tullett Prebon, a broker of physical LNG cargoes. 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."