Parameta Solutions and General Index announce the launch of a new service that provides clear and reliable daily benchmarks for trading liquefied natural gas (LNG) between different hubs.
Using information from TP ICAP’s Energy & Commodities desks, Parameta Solutions has created a methodology called waterfall that is operated using GX’s benchmark technology. The Parameta Solutions Global LNG Basis Indices will provide a technology-driven alternative to traditional pricing assessments done by journalists.
GX will act as an independent regulator for the indices, making them available for determining prices. Serving as a reference rate in financial contracts. And facilitating clearing and settlement.
Chief Product Officer, Parameta Solutions, Ovie Koloko, said:
As the world continues along the path to net zero, LNG has emerged as the key balancing fuel that market participants are using to accelerate their progression. The market for this product has expanded, with volumes increasing as a result of geopolitical pressures on supply chains. As a result, what was once a niche, localised market is now a truly global one. Therefore, this collaboration to create a suite of benchmarking tools is necessary to help participants manage their risk more effectively.
CEO, General Index, Neil Bradford, said:
There is a natural fit between an OTC trade data provider and an independent benchmark provider. This innovative partnership brings new transparency and choice to the LNG market, and we believe it will be the first of many collaborations between our firms.
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