Japan to Launch LNG Futures Market

Japan will likely launch world’s first LNG futures market by March 2015, Reuters said citing a statement by country’s trade minister.

The country aims to establish a cash-settled LNG futures market at Tokyo Commodity Exchange to give importers, including power utilities and city-gas suppliers, a chance to hedge risks and try to break its reliance on oil-linked pricing, a trade ministry official said.

Reuters added that trade ministry and various Japanese firms have reached a basic agreement on setting up the market.

Japan will consider asking exchanges in Singapore and the United States to establish similar LNG futures markets in their nations, the trade ministry official said, Reuters reported.

A physical settled LNG futures markets is also being planned, the report said citing the trade ministry official.