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LNG market participants shun Japanese forwards

Contract hit by lack of interest and fears over pricing methodology

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A new Japanese forward contract for liquefied natural gas (LNG) is off to a slow start and has yet to see a single trade since its launch on September 12, according to market participants.

The contract – a cash-settled non-deliverable forward – was listed by the Japan OTC Exchange (JOE), a joint venture of the Tokyo Commodity Exchange and Singapore-based energy broker Ginga. Settlement prices for the contract are intended to reflect the price of LNG imported into Japan, as reported by Tokyo

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