Northwest European LNG derivative sees largest lots traded for contract

The LNG Northwest Europe Marker (Platts) October futures contract traded 330 lots on July 20, according to CME data, in what was the largest number of lots traded in the contract’s history.

This equates to roughly a full cargo of LNG and marks the first cleared NWM/TFU spread trade. The contract traded as a spread to 330 lots of TFU at a discount of 65 cents/MMBtu, or an outright basis of $10.75/MMBtu, according to the CME data.

It was not immediately clear who the counterparties were but the trade was brokered by TFS.

The Northwest Marker derivative was launched on Oct. 24 and has traded a total of four times for a combined 785 lots. The previous trades were brokered by TFS, and the inaugural trade was consummated between TotalEnergies and Vitol.

The May 24 trade was for 150 lots for August at a fixed price of $8.50/MMbtu, while the Oct. 31 trade was for 300 lots for February at a $2/MMBtu premium to the JKM.

Platts, part of S&P Global Commodity Insights, assessed NWE October at $10.906/MMBtu in outright terms on July 20, which reflects a 4:30 pm London timestamp.