ze datawatch - july 2012

7/31/2019 ZE DataWatch - July 2012

1/24


2/24

The offer by the Hong Kong Exchanges and Clearing Ltd to buy the London

Metal Exchange, which is yet to be voted on and approved by regulatory

bodies, is to become one of the largest exchange transactions

datawatch SummarEditorial

In Depth

Data News

Power Markets

Fossil Fuel Markets p. 5 - 7

Agriculture, Forestry and Metal Markets p. 8 - 9

Other Matters p. 1

p. 16 - 1News from Data Vendors

p. 3

FX, Interest Rates, Credit and Equity Indexes p. 12

CME Lists LNG East Asia (ICIS Heren) Index Swaps

CME Adds Asian Light End European-style Options

CME Lists East-West Fuel Oil Spread (Platts) BALMO Swap Futures

CME Adds a New European Style APO on the Monthly Average Price

CME Lists East-West Gasoline Spread (Platts-Argus) Swaps

Platts Plans to Add Three More China LNG Ports

ICE Brent NX (New Expiry) Crude FuturesArgus Launches Iraqi Basrah Light Crude Assessment for Asia

Platts to Launch Singapore Gasoil 500 ppm Swaps Assessment

Platts Plans to End UKC-Med 27.5kt Assessment

Platts to Discontinue FOB NWE Gasoline Cargoes

EEX Spins Off Natural Gas Markets Into a Separate Company

ICE Extends Listing of Heating Oil Options Contract

Platts to Increase LNG Ship and Cargo Sizes

EEX Extends Incentive Model on Natural Derivatives Market

p. 18 - 2

BRIX Launches Futures Price Curve

EPA Launches First Waste-to-Biogas Mapping Tool

BM&FBOVESPA Launches Soybean Futures

Bursa Malaysia Lists Options on Crude Palm Oil Futures

CME to Launch Ferrous Scrap Futures

SMX Launches E- Gold Futures

TOCOM to Take Over Agricultural Market from TGE

HKEx Makes Acquisition Offer for LME

HKMEx Signs MOU with Jiangxi Copper

CBOE Launches First Interest Rate-Based Volatility Index

NASDAQ OMX Plans to Launch NASDAQ OMX NLX

Deutsche Brse and GreTai Securities Market Sign MoU

MOF and HKEx Sign MoU

HKEx, SHSE and SZSE Establish Joint Venture in Hong Kong

SPX Variance Strips to Be Traded in a Single Transaction

Argus Acquires DeWitt, Expands into Petrochemical Reporting

Argus Launches Worlds First Composite Nitrogen Fertilizer Index

Argus Launches FOB West Africa LNG Price

Argus Launches Iraqi Basrah Light Crude Assessment for Asia

MDA EarthSat Weather Produces Exclusive Updates on U.S. Drought D

Platts Biofuels Alert Service and Market Data Launching September 1st

WAPA Chooses EOX Holdings' Natural Gas and Power Forward Curves

ZEMA Adds New Data Reports

CME Introduces Options Open Interest Profile Tool

NASDAQ OMX Commodities Introduces New Products

Platts Delists NWE PS Gross Prices

LIFFE Terminates Clearing by LCH.Clearnet LTD

TOCOM to Delist Nikkei-TOCOM Commodity Index Futures

BVC, TSX and TSX Venture Exchange Sign MoU

Environmental Markets and Weather Services p. 10 - 11BM&FBOVESPA Launches New Exchange Traded Fund

EPA Online Tool for Global Urban Infrastructure Investments

NOAA/NASA Implement Data from New Satellite

WSI and Onsemble Launch WindCast RT for ERCOT

MDA to Provide Settlement Values for CME Hurricane Index

Argus Expands Coverage of California, US RECs

BlueNext Spot Market Reopens and Launches EUAA Contract

BM&FBOVESPA and So Paulo Government Develop EnvironmentalMarket

MDA EarthSat Weather Enhance Dynacast 2.0

ZEMA Market Dashboard p. 14 - 1

North American Electicity DA Prices (ICE)

Actual Temperature (AccuWeather)

North American Electricity Forward Curves (ICE)

EUA Forward Curve (ICE)

Henry Hub Forward Curves (ICE)

North American Natural Gas Spot Prices (ICE)

Crude Oil Brent vs WTI

- Forward Curve (NYMEX)

- Prompt-Month Contract (NYMEX)

July 2012

The U.S. is boasting a somewhat intimidating supply of natural g

resources trapped in shale plays. With the boost in horizontal drilling a

hydraulic fracturing technologies, these formerly untapped resources anow being unveiled. This offers new opportunities to a variety of industrie

LNG is one of them. LNG markets, however, are driven by multiple facto

some of which have a reversal effect on natural gas expansion.

Shale Gas: More Complications for Price ForecastDevelopers Part Two. LNG to Make It More Confusing

p. 4


3/24

EditorOlga GorstenkoPhone: 778-296-4183Email: [email protected]

Editors letter

Have an idea for an article or would like to contribute to an upcoming issue?Write to us at [email protected]

Olga Gorstenko

Advertising & Vendor RelationshipsBruce ColquhounPhone: 604-790-3299Email: [email protected]

We continue exploring shale gas development and its impact on the overall natural gas outlook. Liquefied Natural Gas(LNG) is one of the drivers affecting demand for shale gas. However, LNG itself is affected by multiple factors.In the 90s, as the U.S. started to demonstrate signs of imminent natural gas shortage, the idea of transporting natural gas

in the liquefied form was picked up by the major global gas producers on a larger scale than before. Investments streamedinto exporting facilities in the Middle East, while importing and regasification infrastructure was being developed in the U.SSeveral years ago, LNG import terminals were constructed across North America in response to a dwindling domestic natu-ral gas supply.Many things have changed since then. The rise of unconventional gas production in North America and growing globademand for LNG support the construction of the U.S. exporting facilities and the conversion of pre-existing import infrastructure. Refer to page 18 to read our In-Depth article about global and domestic factors impacting the LNG markets and howthey might influence natural gas prices and production.

LNG continues to gain more coverage from data providers. Last month, CME added East Asia Index swaps for LNG, whilePlatts expanded LNG assessments by including three more ports in China, and increasing the ship and cargo sizes by, thusreflecting the global trend of growing volumes of LNG trades.

The big news of the month from the emerging markets is the offer by the Hong Kong Stock Exchange, Hong KongExchanges and Clearing Ltd (HKEx), to pay 1.4 billion pounds (US$2.18-billion) to buy the London Metal Exchange (LME)yet to be voted on by LME by the end of July and approved by regulatory bodies. The contest started in September 2011and drew interest from 15 parties. HKEx outbid InterContinental Exchange in the final stage. It has been speculated that thevictory was mainly warranted by promising to preserve LMEs current business model and not to increase transaction feesfor three years, which has been the main exchanges mark for years. Likely the worlds largest marketplace for industrialmetals, LME will now gain access to China, the biggest consumer of metals. Whether the acquisition by HKEx will lead tothe major consumer taking over control of setting global prices for the same commodity is yet to be seen. The overall trendremains the same: emerging Asian markets are moving closer to the mark crossing which will move them into the camp ofdeveloped marketplaces.

To access previous issues of ZE DataWatch, go to http://www.ze.com/news/ze-datawatch.htm

ZEMA Suite InquirieBruce ColquhounPhone: 604-790-3299Email: [email protected]

datawatchJuly 2012


4/24

Power Mark datawatch July 2012

Back to Summary

BRIX Launches Futures PriceCurve

On June 20, 2012, BRIX launched its Futures Price Curve relative tocontracts for electric power from conventional sources for delivery to theSoutheast and Center-West submarket. BRIX Futures Price Curve

assessment is the same one used by its partner, IntercontinentalExchange(ICE), to establish similar curves in hundreds of commodity markets. BRIXFutures Price Curve is released on a daily basis in Reals per MWh.

NEW

Mapping tool can be accessed he

The introduction of an online waste-to-biogas mapping tool pioneered by US Environmental Protection Agencys Pacific Southwest Region wannounced on June 7, 2012. The tool is an interactive map built to conn

organic waste producers (restaurants, hotels, grease rendering facilities) apotential users (wastewater treatment facilities, dairies) for the purposebiogas production through co-digestion. In this process food scraps, fats, and grease (FOG) are added to an anaerobic digester to producemethane-rich biogas. Designed for decision-makers with expertise in fields of waste management, wastewater management and renewaenergy, the tool identifies facilities that exist in an area and the distanbetween the waste producer and an anaerobic digester.

Features include:- FOG hauler information for California, Arizona and Nevada- California landfill information- On-site energy generation for California dairies with digesters (in kilowahours per year)

- Energy estimates for wastewater treatment facilities, with and withoutco-digesting FOG (in kilowatt hours per year for California, Arizona, Nev

and Hawaii).- A correct record option that allows facilities to change informationpresented on the map.

EPA Launches FirstWaste-to-Biogas Mapping Tool

NEW
http://epamap21.epa.gov/biogas/index.htmlhttp://epamap21.epa.gov/biogas/index.htmlhttp://zeco.org/registration_edm.htmhttp://zeco.org/conference.htmhttp://epamap21.epa.gov/biogas/index.html


5/24

datawatch July 2012

Back to Summary*Graph created with ZEMA

Fossil Fuel Mark

CME Lists LNG East Asia Index(ICIS Heren) Swap Futures

Effective July 15, 2012, CME listed LNG East Asia Index (ICIS Heren) SwapFutures for the next trade date. The trading venues are Open Outcry on theNYMEX Trading Floor and CME ClearPort.

NEW

CME Adds Asian Light EndEuropean-style Options NEW

CME Adds a New European StyleAPO on the Monthly AveragePrice

On July 2, 2012, CME added Japan C&F Naphtha (Platts) Average POption/Singapore Mogas 92 Unleaded (Platts) Average Price Option. trading venues are Open Outcry trading on the NYMEX trading floor CME ClearPort. These option contracts will be financially settled. contracts will be listed with, and subject to, the rules and regulationNYMEX.

NEWOn July 1, 2012, CME listed two new Asian Light End European-style optionsfor the following trade date. The trading venues are CME ClearPort and OpenOutcry on the NYMEX trading floor. These contracts are listed with, andsubject to, the rules and regulations of NYMEX.

CME Code DescriptonLAI Liquified Natural Gas swap futures contract based on South

East Asian LNG prices from ICIS Heren

For contract specifications clickhere

CME Code Descripton

JA5 Japan C&F Naphtha (Plas) Average Price Opon

1N5 Singapore Mogas 92 Unleaded (Plas) Average Price Opon

For JA5 contract specifications clickhere

For 1N5 contract specifications click here

CME Lists East-West Fuel OilSpread (Platts) BALMO SwapFutures

NEW

On July 1, 2012, CME listed East-West Fuel Oil Spread (Platts) BALMO

Swap Futures for the next trade date. The trading venues are CME ClearPortand Open Outcry. These contracts are listed with, and subject to, the rulesand regulations of NYMEX.

For EWB contract specifications clickhere

CME Code Descripton

EWB East-West Fuel Oil Spread (Plas) BALMO Swap Futures

East-West Fuel Oil Spread Swap contract is currently traded on CME and isshown in two examples below, forward curve and near-month contract):

Data Source - CME*

Data Source - CME

CME Code Descripton

JA5 Japan C&F Naphtha (Plas) Average Price Opon

1N5 Singapore Mogas 92 Unleaded (Plas) Average Price

Opon

For contract specifications click

CME Lists East-West GasolineSpread (Platts-Argus) Swaps

Effective July 1, 2012, CME listed East-West Gasoline: Singapore MogaUnleaded (Platts) vs. Gasoline Euro-bob Oxy (Argus) NWE Barges fonext trade date. The trading venues are CME ClearPort and NYMEX trafloor. The contracts will be listed with, and subject to, the rules regulations of NYMEX.

NEW

For EWG contract specifications click

CME Code Descripton

EWG East-West Gasoline Spread (Plas-Argus) Swap Futur

Platts Plans to Add Three MoreChina LNG Ports

On June 21, 2012, Platts announced its plan to include the Chinese poShanghai, Dalian and Rudong in its LNG Japan/Korea Marker assessmeAugust. The three newly introduced ports will be added to the Chinese of Guangdong and Fujian which Platts currently considers in its assessmDeliveries to Chinese ports are normalized to a delivered exJapan/Korea basis.

NEW
http://www.cmegroup.com/tools-information/lookups/advisories/market-data/files/lngnewproductsummary.pdf?utm_medium=Email&utm_source=ExactTarget&utm_campaign=Market+Data+Notices+June+25%2c+2012http://www.cmegroup.com/tools-information/lookups/advisories/market-data/files/lngnewproductsummary.pdf?utm_medium=Email&utm_source=ExactTarget&utm_campaign=Market+Data+Notices+June+25%2c+2012http://www.cmegroup.com/trading/energy/refined-products/japan-cf-naphtha-platts-swap_contractSpecs_options.htmlhttp://www.cmegroup.com/trading/energy/refined-products/japan-cf-naphtha-platts-swap_contractSpecs_options.htmlhttp://www.cmegroup.com/trading/energy/refined-products/ProductOverride/1N5-singapore-mogas-92-unleaded-platts-average-price-option.htmlhttp://www.cmegroup.com/trading/energy/refined-products/east-west-fuel-oil-spread-platts-balmo-swap-futures_contract_specifications.htmlhttp://www.cmegroup.com/trading/energy/refined-products/east-west-fuel-oil-spread-platts-balmo-swap-futures_contract_specifications.htmlhttp://www.cmegroup.com/trading/energy/refined-products/east-west-fuel-oil-spread-platts-balmo-swap-futures_contract_specifications.htmlhttp://www.cmegroup.com/trading/energy/refined-products/ProductOverride/1N5-singapore-mogas-92-unleaded-platts-average-price-option.htmlhttp://www.cmegroup.com/trading/energy/refined-products/japan-cf-naphtha-platts-swap_contractSpecs_options.htmlhttp://www.cmegroup.com/tools-information/lookups/advisories/market-data/files/lngnewproductsummary.pdf?utm_medium=Email&utm_source=ExactTarget&utm_campaign=Market+Data+Notices+June+25%2c+2012


6/24

datawatch July 2012


Fossil Fuel Mark

ICE Brent NX (New Expiry) CrudeFutures

On July 2, 2012, ICE announced Brent NX (New Expiry) Crude Futures TAS(Trade-at-Settlement) that allow market participants to enter an order to buyor sell an eligible ICE Brent NX Crude Futures contract during the course of

the trading day at a price which will be equal to the settlement price for thatcontract month, or at a price that is up to 5 cents/barrel above or below thesettlement price. This contract is cleared through ICE Clear Europe.

See below two examples of Brent futures traded on ICE:

NEWPlatts to Launch SingaporeGasoil 500 ppm SwapsAssessment

NEW

On Agust 1, 2012, Platts launches new temporary assessments for Singapore Gasoil 500ppm swaps called: Interim Gasoil Swaps. Theproducts cover the contract months of October, November and DecemPlatts transition from a high sulfur basis to a low sulfur basis for its flagFOB Singapore Gasoil benchmark would support the continued creationMOPS Strip for the valuation of physical gasoil cargoes. The lower sspecifications reflect changing supply and demand trends across the regThe new assessments will appear on Platts Global Alert, in AMarketscan and in the Platts price database.

For more information click here

ICE Code Descripton

IFEU ICE Brent NX Crude Futures

Data Source - ICE*

Argus Launches Iraqi Basrah

Light Crude Assessment for AsiaNEW

On July 2, 2012, Argus launched a new price assessment for Asia-boundcargoes of Iraqi Basrah Light crude, the fastest-growing crude stream in theMideast Gulf this year. Due to the growing importance of Iraqi crude in theAsia-Pacific market and increasing Iraqi crude production, Argus started topublish its new Basrah Light assessment. The assessment will be done bycomparing Basrah Lights value with the average of Dubai and Oman crudes,publishing a differential to the grades official formula price and an outrightvalue. While Asia-Pacific consumers have significantly reduced crudeimports from Iran, Basrah light crude has become more relevant than ever.

The new price assessment will be published in the daily Argus Crude marketreport from 2 July.

Platts Plans to End UKC-Med27.5kt Assessment

On June 18, 2012, Platts announced that will discontinue its fuel oil UKingdom/Continent-Mediterranean 27.5kt dirty tanker freight assessmeNovember 1, 2012. These rates are published in the Platts dirty Tanke

and on PlattsGlobal Alert page 946. Platts intends to discontinueassessment on November 1, 2012.

This covers assessment codes:- AAKXD00 -27.5kt UKC-Med Daily worldscale- AAKXI00 -27.5kt UKC-Med Monthly average worldscale- AAKXT00 -27.5kt UKC-Med Daily $/mt- AAKXO00 -27.5kt UKC-Med $/mt monthly average

Out

Platts to Discontinue FOB NWEGasoline Cargoes

Effective January 2, 2013, Platts will discontinue the FOB NWE PremGasoline Non-Oxy and Regular Unleaded Non-Oxy assessments due t

changes in trading patterns. The gasoline quality reflected in assessments no longer reflects a liquidly traded grade in Northwest Eur

Out

WATC

EEX Spins o Natural GasMarkets into a SeparateCompany

The Environmental Energy Exchange (EEX) set apart its Gas SpoDerivatives Market into a company called EGEX European Gas Exchanhundred percent of which is owned by EEX. The spin-off was approved bExchange Supervisory Authority on June 21, 2012, during its general mein Leipzig. The company will commence operations retroactively, begiJanuary 1, 2012.

Natural Gas Spot and Derivatives Markets were launched in July 2007allowed market participants to trade in the German GASPOOL and market areas, as well as the Dutch TTF market around the clock. Additiothe EEX established a reference price in short-term trading with thereference price, which is also used by German market area operatosettle control energy with all gas shippers, in accordance with requiremby the Federal Network Agency.

The volume traded has been increasing exponentially especially sinclaunch of the liquidity incentive model, doubling the volume in the firsmonths of the current year. In addition, 15.8 TWh have been tradedJanuary until May 2012, compared to 7.7 TWh in the same period durinprevious year. The liquid Spot Market forms the basis for the developmethe Derivatives Market, in which traded volumes have risen by ovepercent during the first five months in 2012.

(continued on the nex
https://www.theice.com/publicdocs/circulars/12079%20attach.pdfhttps://www.theice.com/publicdocs/circulars/12079%20attach.pdfhttps://www.theice.com/publicdocs/circulars/12079%20attach.pdf


7/24

datawatch July 2012


Fossil Fuel Mark

The significance of EEX prices in long-term natural gas trading will besupported further by the gas price index EGIX. This index is based on allexchange trades concluded in the coinciding current front month contracts ofhe NCG and GASPOOL market areas on the Derivatives Market.

With the company spin-off, natural gas trading will continue to be promoted inhe existing and new market areas, as well as other European countries in the

uture. We see great potential for cooperation with other exchanges andmportant players in the market also in the field of natural gas trading. Thespin-off of the Spot and Derivatives Market to the new company facilitates thepreconditions for a cooperation with other exchanges, trading platforms andmarket participants, explains Peter Reitz, Chief Executive Officer of EEX.

The graph below demonstrates natural gas products for different Europeanhubs traded on EEX.

Platts to Increase LNG Ship andCargo Sizes

Effective August 1, 2012, Platts announced its plan to increase the stanship and cargo size of 125,000-155,000 cubic meters (m3135,000-175,000 m3 in its global LNG assessments. The larger cargo s

are supposed to be reflected in Platts daily spot price assessments oJapan/Korea Marker, Southwest Europe, Northwest Europe, DES WIndia, FOB Middle East and netback FOB Australia. Platts will normalizassessments to reflect cargo sizes of 145,000 m3 in in the Asia PaAtlantic day rate assessments and global freight costs. Platts will mochanges in shipping practices to ensure its assessments are in line shipping logistics.

continued from the previous page)

Data Source - EEX*Data Source - EEX*

ICE Extends Listing of Heating Oil

Options ContractEffective June 28, 2012, ICE extended its Heating Oil Options contract tonclude all contract months to December 2013 from the previous April 2013contract month. It will also add an additional 12 months to the end of theseries upon the expiry of the prompt December contract, so that up to 24consecutive months will be listed.

EDIT

EEX Extends Incentive Model onNatural Derivatives Market

The liquidity incentive model was launched in August 2011 by the EuroEnergy Exchange (EEX) and was initially scheduled to continue until theof July 2012. On June 28, 2012, EEX announced that it will be extended t

additional months. The model is based on the established volume for emarket area (GASPOOL, NCG and TTF), and once thresholds are reacparticipants will receive a certain bonus, which is paid out to the three mactive trading participants in a specific market area on a monthly basisprogram includes all Day Ahead products for natural gas and automatiadmits all trading participants in the Natural Gas Spot Market, withexception of market area operators.

The incentive scheme resulted in a substantial boost in trading activDuring the first five months of 2012, 16.3 TWh were traded on the NaGas Derivatives Market, and compared with the same period in the prevyear, corresponds to an 81-percent increase (January to May 2011TWh). Since the launch of the EEX incentive model for the DerivaMarket, the bonus has been paid out 19 times.

EDI

EDIT


8/24

datawatch July 2012


BM&FBOVESPA LaunchesSoybean Futures

On June 11, 2012, BM&FBOVESPA launched a new soybean future contractavailable for trading. The new derivative is based on the settlement price ofthe Mini-Sized Soybean Futures Contract traded on the Chicago Board ofTrade (CBOT), authorized for trading as of the August 2012 contract month,under the SJC ticker, from 9:00 a.m. to 3:15 p.m. The maximum daily pricefluctuation is +/- USD 1.543 per 60-kilogram bag, from the previous dayssettlement price. The settlement prices of the Mini-Sized Soybean Futures

Contract are calculated from the prices published on the CME Group website.

The soybean futures contract cash settled at the price of the product with thetransferred status traded at the Paranagu (Paran) port, and settled inaccordance with the ESALQ/BM&FBOVESPA Soybean Price Index, remainsauthorized for trading.

The launch of the new soybean contract is part of an agreement with CMEGroup aimed at promoting cross-listing of commodity futures and to meetdemand from soybean market participants that face difficulty in trading onforeign exchanges. The new contract also facilitates hedging strategiesthrough arbitrage between local and international prices.

NEW

Agriculture, Forestry and Metal Mar

For contracts specifications click here

Bursa Malaysia Lists Options on

Crude Palm Oil Futures

Effective July 15, 2012, Bursa Malaysia Derivative listed options on CrudePalm Oil futures for the following trade date on CME Globex. The newproduct follows a new format for tag 107-SecurityDesc(OCPOJUL120335000C), as described below:- Bytes 1-4 - product code- Bytes 5-9 - instrument maturity in MMMYY- Bytes 10-14 - strike price, left padded with 0 as needed- Bytes 15-16 - 00 for non-fractional strike price; fractional part in two decimalplaces for fractional strike price

- Byte 17 - P for put option; C for call option

NEW

CME to Launch Ferrous ScrapFutures

On June 20, 2012, CME announced its plans to introduce a new ferrousscrap futures product this fall based on AMMs Midwest Ferrous Scrap Indexthat was launched last month. The new contract could provide hedgingopportunities to scrap recyclers, mini mills and construction companies, whobuy long steel products produced from steel scrap. As the price correlationsbetween scrap, iron ore and steel are not high enough to manage risk in thescrap market, price volatility has become a major issue in that market.Trading volumes have totaled around 6,000 lots in January and February, butplunged to under 2,000 lots during the following two months.

NEW

CME Code Descripton

OCPO Opons on Crude Palm Oil Futures

SMX Launches E- Gold Futures

Effective June 13, 2012, the first E-Gold futures contract traded on the Singa-pore Mercantile Exchange (SMX) commenced and completed its first dailysettlement. The contract, based on the Indian gold price, went live on June 1and was settled following $16 million worth of trades.

India accounts for 27% of global consumer demand for gold, making it thelargest physical market. By offering the E-Gold futures contract on the SMXand benchmarking it against one of the most liquid contracts from Asia, themarket will become attractive for global members who want to hedge theirprice exposure to the Asian physical market represented by India.

NEW

TOCOM to Take Over AgriculturalMarket from TGE

In February 2013, the Tokyo Commodity Exchange (TOCOM) plans to laan agricultural market that will accept the transfer of soybeans, azuki, and raw sugar contracts from the Tokyo Grain Exchange Inc. (TGE).open positions or orders remaining on the TGE market through thetrading session will continue to be traded on TOCOMs new agricumarket, with TOCOM assuming responsibility for their management seamless integration.

As shown in the example below, TOCOM is already trading energy, mand other products like rubber.

WAT

Data Source - TOC
http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/mini-sized-soybean.htmlhttp://www.cmegroup.com/trading/agricultural/grain-and-oilseed/mini-sized-soybean.htmlhttp://www.cmegroup.com/trading/agricultural/grain-and-oilseed/mini-sized-soybean.htmlhttp://www.smx.com.sg/Products/EGoldFutures.aspxhttp://www.smx.com.sg/Products/EGoldFutures.aspxhttp://www.cmegroup.com/trading/agricultural/grain-and-oilseed/mini-sized-soybean.html


9/24


10/24

datawatch July 2012

Back to Summary

Environmental Markets and Weather Serv

EPA Online Tool for Global UrbanInfrastructure Investments

On June 20, 2012, details of a new online tool developed by the US-BrJoint Initiative on Urban Sustainability (JIUS) were announced at the Rio

conference in Rio de Janeiro by the US Environmental Protection Ageand the Brazilian Minister for the Environment. The interactive web platfcontains a collection of policy instruments, financial mechanisms and proexamples which have been assembled from a range of public private-sector experts from Rio de Janeiro and Philadelphia, and featuresbest strategies for driving urban sustainability investment. Local officcommunities, developers and investors can use this website to identifybarriers to sustainable investment and ways to overcome them.

NEW

BM&FBOVESPA Launches NewExchange-Traded Fund

On June 15, 2012, BM&FBOVESPA launched a new exchange-traded fund(ETF) called Ishares Carbon Efficient Index with the ticker symbol ECOO11,and indexed to the Carbon Efficient Index (ICO2). ICO2 is comprised ofshares of companies participating in the IBrX-50 index that joined theinitiative between BM&FBOVESPA and the Brazilian Development Bank(Banco Nacional de Desenvolvimento Econmico e Social/BNDES) throughadoption of transparent practices related to their greenhouse gas emissions(GHGs).

BM&FBOVESPA currently has 14 ETFs available for trading, including fourbroad-based index funds - BOVA11, BRAX11, PIBB11 and DIVO11, indexedto the Ibovespa, IBrX-100, IBrX-50 and Dividend indexes respectively; sixsector index funds - CSMO11, MOBI11, MATB11, FIND11, ISUS11 , UTIP11and GOVE11, indexed to the Consumer Goods, Real Estate, Basic Materials,Financials, Corporate Sustainability, Public Utility and Corporate Governanceindexes respectively; and, two market cap index funds - SMAL11, indexed tothe small cap index, and MILA11, indexed to the large cap index.

NEW

BM&FBOVESPA

Code

ISIN Code Descripton

BOVA11 BRBOVACTF003 Based on the Ibovespa index which is

made up of shares issued by companies in

which there is over 80% of trading and

financial volume on the Exchange.

BRAX11 BRBRAXCTF002 Based on the Brazil Index (IBrX 100),

which measures the return on investment

in a theorecal portolio made up of the

100 most traded shares on

BM&FBOVESPA in terms of number of

transacons and financial volume.

CSMO11 BRCSMOCTF002 Based on the BM&FBOVESPA

Consumpon Index, which measures the

return on investment in a theorecal

portolio made up of stocks issued by

companies representing the cyclical and

non-cyclical consump

on sectors.ECOO11 BRECOOCTF008 Obtains returns on investments that

correspond, in general, to the

performance, before fees and expenses,

of the Carbon Efficient Index. The stocks

are weighted in the Index portolio based

on the GHG emissions efficiency levels of

the companies as well as on the free float

(total shares outstanding) of each

company.

MILA11 BRMILACTF003 Based on the BM&FBOVESPA MidLarge

Cap Index, which measures the return on

investment in a theorecal portolio of the

large and mid-market capitalizaon

companies listed on the Exchange.

MOBI11 BRMOBICTF005 Based on the BM&FBOVESPA Real Estate

Index, which measures the return oninvestment in a theorecal portolio made

up of shares issued by companies

representing the real estate sectors

comprised of civil construcon, property

agency and real estate investment.

SMAL11 BRSMALCTF002 Based on the BM&FBOVESPA Small Cap

Index, which measures the return on

investment in a theorecal portolio made

up of shares in Small Capitalizaon

companies on the Exchange.

UTIP11 BRUTIPCTF007 Based on the Bovespa Public Ulies

Index, which measures the return on an

investment in a theorecal portolio

composed by stocks of public ulies

companies.

DIVO11 BRDIVOCTF002 N/A

FIND11 BRFINDCTF007 Based on the Financial Index (IFNC), whi

is comprised of stocks issued by

companies that represent financial

intermediary, diversified financial

services, and life and mul-line insuranc

sectors.

GOVE11 BRGOVECTF004 Based on the Corporate Governance

Trade Index (IGCT), which is comprised o

stocks issued by companies that compos

the IGC, and simultaneously meet liquid

criteria.

MATB11 BRMATBCTF001 N/A

ISUS11 BRISUSCTF003 Based on the Corporate Sustainability

Index (ISE), which is designed to measure

the return on a portolio comprised of

stocks issued by companies that are high

commied to social responsibility and

corporate sustainability, and to the

inducon of good practices in the

Brazilian corporate environment.

PIBB11 BRPIBBCTF005 Based on the Brazil Index 50 (IBrX-50)

Index, which measures the return on

investment in a theorecal portolio mad

up of the 50 most traded shares on

BM&FBOVESPA in terms of liquidity.

Platform is available

NOAA/NASA Implement Data fromNew Satellite

Effective June 26, 2012, data from the Suomi NPP Satellite, the joint misbetween NASA and NOAA which observes the earths land, oceans atmosphere, is being implemented in operational weather models only semonths after launch. The Suomi NPP satellite circles the Earth every minutes, flying 512 miles above the surface, capturing data from the loceans and atmosphere and securing data using five state-of-theinstruments on board that transmit information on atmospheric temperaand water vapor. This data is used to predict short-term and long-tweather forecasts. The pace at which information has become available operational reveals the strength of the partnership and its commitmenenhancing future forecasts.

NEW

Suomi NPP Mis
http://www.epa.gov/jius/http://npp.gsfc.nasa.gov/http://npp.gsfc.nasa.gov/http://npp.gsfc.nasa.gov/http://www.epa.gov/jius/


11/24

datawatch July 2012


Environmental Markets and Weather Serv

WSI and Onsemble LaunchWindCast RT for ERCOT

Effective June 28, 2012, WindCast RT, a new decision support tool designedto improve bal-day trading decisions was announced by Weather ServicesInternational (WSI) and Onsemble. Onsembles real-time hub-heightobservations from their network of sensors combined with WSIshourly-updating RPM forecasts of regional and ERCOT wind generation arepresented graphically to facilitate monitoring and forecasting of windfluctuations affecting trading decisions. Using WindCast RT, which providesmore proficient forecasts than any other ERCOT updates currently available,traders can spot trends early, benchmark performance and capitalize onwind-based opportunities. Forecasts are issued every hour, out to 12-hourson the basis of wind data collected near the exact points of energy generat ionand at hub height.

NEW

WindCast RT is availablehere

MDA to Provide Settlement Valuesfor CME Hurricane Index

Effective June 18, 2012, CME Group has selected MDA EarthSat WeatherGroup to provide weather settlement data for its hurricane products. MDA

already collects weather settlement data for the CME Hurricane Index (CHI),which was developed to provide an estimate of hurricane damage. The riskof storms making landfall along the mainland of the US will be managed bythis new CHI Contract.

NEW

Argus Expands Coverage ofCalifornia, US RECs

On June 7, 2012, Argus launched a series of new market assessments forrenewable energy certificates (RECs) and carbon markets in California, thewestern US and elsewhere. Expanding its California coverage, Argusenhanced its coverage of carbon allowances, including dailyvolume-weighted average date for December 2012 delivery. The new data

will be published in Argus Air Daily. Also, the new California and additionalGreen-e instruments will make available key market data for powergenerators in California and throughout the western US. Argus added theseassessments due to the increased trading and interest in the North Americanmarkets and to increase transparency.

NEW

BM&FBOVESPA and So PauloGovernment DevelopEnvironmental Market

On June 5, 2012, BM&FBOVESPA, along with the So Paulo SGovernments Environment Secretariat and the Environmental AgencSo Paulo State, signed a protocol of intent that aims to study institutand regulatory measures for the development of the environmental asmarket. The initial focus of the protocol is on the Greenhouse Gas Emiss(GHG) and Legal Reserve Compensation segments.

The agreement includes creation of a technical proposal that describesEnvironmental Markets general characteristics, as well as the key aspecthe institutional and operational structure required for its implementaincluding assets that may be used in transactions, their issue, registraand trading.

In addition, the GHG segment requires determination of targets by relebodies, the creation of rules for emission reduction criteria and monitoand double checking of corporate inventories. Meanwhile, prerequisitethe Legal Reserve Compensation segment include creation of rulesemission reduction criteria, and checking legal reserves along with appby the state government. Other items on the agenda include implementation of an operational structure, including registration systemtrading platform for environmental assets to be in line with state and fedlegislation.

WATCH

MDA EarthSat Weather EnhancesDynacast 2.0 Product

Dynacast 2.0, the interactive analog mapping tool from MDA EartWeather, has recently been upgraded to include a number of wind and sets. Daily hub-height data-sets from 1950 onwards are available, together with the enhanced features of the improved mapping tool, allothe following:- mapping anomalies of 80 meter wind speed averaged over selected dain a set of years;

- 80 meter winds derived from the Climate Forecast System Reanalysis

are tuned for best agreement with wind generation data from ERCOT aMISO;

- analysis of 80 m wind speed anomalies associated with global climatevariability modes like El Nio and the North Atlantic Oscillation.

Vancouver temperature, % of humidity, % of sunlight and wind speedshown in the following MDA EarthSat products example:

EDIT

Data Source - MDA Ear

BlueNext Spot Market Reopens andLaunches EUAA Contracts

On June 21, 2012, BlueNext, the international exchange for environmentalorganized markets, specializing in CO2 emission allowances and credits,reopened its Spot Market. This move followed the June 20, 2012, migrationto the single European Union Registry that was driven by implementation of

security measures provided by the Union Registry, making BlueNexts SafeHarbour Initiative and OTC Open Gate redundant. As of June, 964kt weredelivered with 1.639 million tonnes traded since BlueNext Spot reopened.Subsequently, BlueNext launched an Aviation Allowance contract on its OTCregistration system.

NEW
http://www.wsi.com/products-energy-trading-windcast.htm#WindCast%20RThttp://www.wsi.com/products-energy-trading-windcast.htm#WindCast%20RThttp://www.wsi.com/products-energy-trading-windcast.htm#WindCast%20RT


12/24

datawatch July 2012

Back to Summary

FX, Interest Rates, Credit and Equity Ind

CBOE Launches First InterestRate-Based Volatility Index

On June 18, 2012, the Chicago Board Options Exchange (CBOE) beganpublishing values for Interest Rate Volatility Index (ticker: SRVX), created tooffer a standardized and transparent measure of interest rate swap volatilityto fixed income options traders and portfolio managers. The new index

measures expected basis-point volatility in the interest rate swap market ands based on one-year/ten-year U.S. dollar-denominated swap options(swaptions). These swap options are one of the most actively tradedcontracts in the over-the-counter (OTC) U.S. dollar interest rate optionmarket.

The SRVX index is derived using data provided by major interdealer brokersn the swaption market, applied to a formula similar to the methodology for theCBOE Volatility Index (the VIX Index). CBOE initially will disseminate theSRVX Index value once a day after 3 p.m. Central Time. The index value willbe available from quote data vendors and onCBOE's website.

NEW

NASDAQ OMX Plans to LaunchNASDAQ OMX NLX

On June 22, 2012, NASDAQ OMX announced its plan to launch a newLondon-based trading venue, NLX, to offer a range of both short-term interestrate and long-term interest rate euro- and sterling-based listed derivativeproducts. The new trading venue set to be launched by Spring 2013 aims toenhance the competitive landscape by providing highly competit ive executionand clearing fees and significant margin efficiencies. In Europe, the introduc-tion of new rules which standardize swaps so they are suitable for trading onexchange-like platforms and central clearing has presented new opportuni-ties for European derivatives trading venues. It is interesting to note that theUnited States plans to adopt similar reforms as part of the Dodd-Frank Act.

NLX is partnering with LCH.Clearnet to provide all post-trade services.Having a single platform for both short-term interest rate and long-terminterest rate euro- and sterling-based listed derivative products would havethe potential to save costs significantly for market participants. In particular,users will benefit from collateral efficiencies, with listed products across the

yield curve cross-margined within a single clearing risk pool usingLCH.Clearnets proprietary value-at-risk-based margining methodology.

Currently, derivate trading in Europe is dominated by Deutsche Brse-ownedEurex and NYSE Euronexts Liffe markets. Some subject matter experts likeRichard Perrott, exchange analyst at private German bank Berenberg,believe NLXs move may pose a moderate threat to the dominance of Eurexand Liffe. However, competing in this market is challenging as investors arelikely to stick their platforms where they already have collateral postedwithout new and innovative offerings.

WATCH

Deutsche Brse and GreTaiSecurities Market Sign MoU

On June 25, 2012, Deutsche Brse signed a Memorandum of Understanding(MoU) with the Taiwanese GreTai Securities Market (GTSM) to exchangenformation in order to facilitate the further development of both financialmarkets. Based on this agreement, the two partners are to share knowledgeand information on various business areas and regulatory developments andto assess potentials for cooperation in trading and listing. Gordon ShuhChen, Chairman of GTSM expressed his opinion in an interview: Whilecontinuing our efforts to deliver transparent, secure and efficient tradingservices, we are pursuing opportunities for learning and cooperation withDeutsche Brse. The GTSM would like to explore diversity and innovation ofservices and products and trading momentum that would mutually benefitboth markets.

WATCH

MOF and HKEx Sign MoU

On June 22, 2012, a Memorandum of Understanding (MoU) betweenMinistry of Finance of the Peoples Republic of China (MOF) and the HKong Exchanges and Clearing Ltd (HKEx) was signed, permitting the MOlist and trade RMB-denominated sovereign bonds on HKEx. The MOF p

to list the first batch of sovereign bonds of RMB23 billion on HKExs securmarket, aiding the economic development of Hong Kong and cementingposition as an international financial center.

WATCH

HKEx, SHSE and SZSE EstablishJoint Venture in Hong Kong

On June 28, 2012, Hong Kong Exchanges and Clearing Limited (HKShanghai Stock Exchange (SHSE) and Shenzhen Stock Exchange (SZsigned an agreement to establish a joint venture (JV) in Hong Kong withinnext three months, aimed at developing financial products and relservices. Its focal business involves the development and franchisinindex-linked and other equity derivatives products - the compilation of croborder indices based on products traded on the three exchanges. In addithe Joint Venture will develop industry classifications for listed companinformation standards and information products, as well as market promocustomer services, technical services and infrastructure.

The initial phase involves development of a series of cross-border indicewhich a family of index products will be introduced. This series of indicesinclude a benchmark cross-border index that comprises large Mainenterprises listed on HKExs wholly-owned subsidiary. The Stock Exchaof Hong Kong Limited, SHSE and SZSE, and two indices based on cross-border index - an index comprising A-share constituents and an incomprising Hong Kong market constituents. The index products will incequity index futures and options based on these indices, and they wiltraded on HKExs derivatives market.

The Joint Ventures board consists of nine members, three of which nominated by each of the exchanges. In addition, SHSE and SZSEpropose a Joint Chairman from their representatives on the board, similar

HKEx nominating the Chief Executive from its elected directors. The inpaid-up capital for JV is $300 million, with an equal contribution from the texchanges, as well as equal shareholding interest.

WATCH

SPX Variance Strips to be Tradedin a Single Transaction

On June 19, 2012, the Chicago Board Options Exchange (CBOE) announits plans to introduce a new process for trading SPX variance strips single, fully electronic transaction, aimed at qualified professional invesTrading in SPX Variance Strips (ticker: VSTRP) employs a quoconvention similar to the over-the-counter method of variance squotation with the following specifications:- Prices will be quoted in volatility points.

- Trade quantities will be expressed in contracts; each variance strip"contract" features a multiplier (for example: $25,000, $50,000,and so othat reflects the aggregate vega exposuresensitivity to the underlyininstrument's volatilityof the SPX options comprising the variance stri

- The expiration date of the SPX variance strip will correspond to theexpiration date of the SPX options series.

The SPX Variance Strip will be broken up into separate transactionseveral SPX options series, as soon as the trade is executed. The converprocess employs the formula for the CBOE Volatility Index (VIX) calculates the quantity and price for each SPX option comprising matched variance strip. The Options Clearing Corporation (OCC) will be ufor clearing process.

EDIT

For more information on SPX Variance Strips click
http://www.cboe.com/micro/srvx/default.aspxhttp://www.cboe.com/micro/srvx/default.aspxhttp://www.cboe.com/micro/srvx/default.aspxhttp://www.cboe.com/micro/srvx/default.aspx


13/24

datawatch July 2012


CME Introduces Options OpenInterest Prole Tool

On June 12, 2012, CME introduced graphic representations of open interestand strike prices for Metals, Energy, and Agriculture options on the CMEGroup Options Open Interest Profile tool. This will allow better price discoveryby providing users with the ability to monitor open interest trends and tenden-

cies. This new functionality offers more flexibility and visibility based onproduct specifications, trade date, contract month, and put/call open interestacross the strike range.

clients. Depending on further regulatory approval, NYX proposes that NLiffe continental derivatives markets in Amsterdam, Brussels, Lisbon Paris are all migrated to NYSE Clearing in London following commencemof operation of NYSE Clearing as a fully integrated CCP. In doing so, shareholders benefit from further synergies and customers benefit fromcapital and operational savings.

Other Matte

NEW

NASDAQ OMX CommoditiesIntroduces New Products

On June 18, 2012, NASDAQ OMX Commodities introduced new trade typesof UK Spark Spreads and extension of CO2 curve. The new order typesintroduced are Stop Loss orders and Linked Orders. Linked Orders allowtraders to specify either-or conditions for trading in instruments, whereasStop Loss functionality features both regular Stop Order and Market ifTouched Stop Order. The UK market offering has been further extended withSpark Spreads to combine products including UK Power futures and UK Gas

futures with nomination in MW/GBP. Also, the European Union Allowancefutures curve has now been expanded to include the December contracts forthe years 2015 to 2020 inclusive, and the Certified Emission Reductionfutures curve has been extended to include the December contracts for years2013 to 2020 inclusive.

NEW

Platts Delists NWE PS GrossPrices

Effective June 27, 2012, Platts decided to delist its European gross contractprice assessments for general purpose polystyrene (GPPS) and high-impactpolystyrene (HIPS). The FD NWE contract price assessments that reflecteda conversion from FD Germany gross GPPS and HIPS prices will now reflecta conversion from net prices.

The following assessments are affected:- GPPS Currency Oracle codes- FD Germany Eur/mt HPAMO00- FD Holland Eur/mt HPAMP00- FD Italy Eur/mt HPAMQ00- FD France Eur/mt HPAMR00- FD Britain Eur/mt PHAMS00- FD Spain Eur/mt HPAWL04- HIPS Currency Oracle codes- FD Germany Eur/mt HPAMT00- FD Holland Eur/mt HPAMU00- FD Italy Eur/mt HPAMV00- FD France Eur/mt HPAMW00- FD Britain Eur/mt PHAMX00- FD Spain Eur/mt HPAWN04

The discontinuation follows the introduction of the free-delivered net contractprice assessments for Northwest Europe GPPS and HIPS on September 1,2010.

Out

LIFFE Terminates Clearing byLCH.Clearnet LTD

June 29, 2012, LIFFE Administration and Management (LIFFE), the interna-tional derivatives business of NYSE Euronext (NYX), formally gave notice toterminate its services agreement with LCH. Clearnet, favoring to supportNYSE Liffe Clearing, NYXs derivatives clearing service based in London.NYSE Liffe Clearing devises to operate as a fully integrated Central Counter-party (CCP) from the end of June 2013, subject to regulatory approval, andintends to deliver substantial operational and marginal efficiencies for its

Out

TOCOM to Delist Nikkei-TOCOM

Commodity Index Futures

The Nikkei-TOCOM Commodity Index Futures Contract (TOCOM NEXTbe delisted from the Tokyo Commodity Exchange, Inc. (TOCOM), effeSeptember 28, 2012, with no new contract months listed for TOCOM NTOCOM lists precious metals, aluminum, oil and rubber on its exchaPublicizing of the Nikkei-TOCOM Commodity Index and the Nikkei-TOMCSub Commodity Index will continue to only deliver benchmarks forevaluation of various financial instruments. The Minister of Economy, Tand Industry will verify the schedule for the delisting process.

Ou

For contract specifications click

BVC, TSX and TSX VentureExchange Sign MoU

On June 7, 2012, a Memorandum of Understanding (MoU) endocooperation and collaboration among the securities markets of ColombiaCanada was signed by Bolsa de Valores de Colombia (BVC), Toronto SExchange (TSX) and TSX Venture Exchange. The MoU seeks to bring markets together and facilitate the dual-listing of companies in each otterritory, adding liquidity to shares and allowing investors greater choicwhere they can trade.

As of April 30, 2012, there are five dual listings between TSX and BVCcompanies listed on TSX and 43 companies listed on TSX Venture Exchawith operations in Colombia.

WAT
http://www.ze.com/news/mailing-list-signup.htm


14/24

New York electricity day ahead prices increased significantly in Jcompared with June, in line with warm weather seasonal demand. NEelectricity prices remain steady, as August NYMEX gas price drop

plateauing demand curtailed price increases. California electricity ticked up, pushed by increased demand.

Average daily temperatures increased in July compared with temperatJune. Chicago, New York and Boston all experienced short tempespikes, with Chicago spiking above 90F during the first week of July.

Electricity futures continued following trends described in JuneDataWatch. Long-term trends remain consistent, with price per mehours in all three observed regions increasing incrementally from 2013

European carbon reduction programs traded on ICE have not chsignificantly compared with prior months. Prices still expected to insharply in future years as regulatory requirements tighten.

Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEM

North American Electricity DA Prices (ICE)

Actual Temperature (AccuWeather)

North American Electricity Forward Curves (ICE)

EUA Forward Curve (ICE)

ZEMA Market Dashboa

Interested in ZEMA Dashboard?Contact us to learn more.

datawatch July 2012

Back to Summary
mailto:[email protected]:[email protected]:[email protected]:[email protected]


15/24

ZEMA Market Dashbo

ICE Henry Hub natural gas futures edged up in July as compared with

due mostly to hot seasonal weather along the US Gulf Coast, with nosignificant news affecting the supply development or demand.

Algonquin gas transmission constraints caused by government mainspections in the New York area during mid-June were resolved, resua decline of natural gas spot prices in the New York area. High setemperatures failed to drive demand at Henry Hub or at Chicago CityG

WTI and Brent Crude Oil futures ticked upwards slightly in July, babetween two diverging drivers: the continued weaknesses in the ChineEuropean economies and the geopolitical uncertainties caused Obama administrations expanded sanctions on Iran..

Monthly analytics for Power, Natural Gas, Crude Oil and Environmental markets. Graphs prepared with ZEM

Henry Hub Forward Curves (ICE)

North American Natural Gas Spot Prices (ICE)

Crude Oil Brent vs WTI

Interested in ZEMA Dashboard?Contact us to learn more.

Prompt-Month Contract (NYMEX)

Forward Curve (NYMEX)

datawatch July 2012

Back to Summar
mailto:[email protected]:[email protected]:[email protected]:[email protected]


16/24

datawatch July 2012

Back to Summary

Houston, 15 July 2012

Global energy and commodity price reporting agency Argus Media Inc todayannounced the acquisition of DeWitt & Company Inc (DeWitt), a provider ofmarket assessments and business intelligence to the petrochemicalndustries.

DeWitt provides valuable and unique intelligence on the global petrochemi-cals markets. DeWitts reports cover global trade and pricing for aromatics,olefins, butadiene, methanol, MTBE, hydrocarbon resins and otherpetrochemicals. Founded in 1973, DeWitt publishes nearly 200 pricereferences, which are widely used for benchmark pricing and analyticalpurposes. DeWitt also performs bespoke consulting services and publishesmulti-client studies.

Argus Media chairman and chief executive Adrian Binks said: "We aredelighted to welcome DeWitt to Argus. DeWitt is a well known and respectedbrand within the petrochemicals sector and is a natural complement to Argusexisting strength in crude oil, refined petroleum products and LPG. DeWitthas an excellent reputation for providing intelligent insight and detailedanalysis to its impressive range of customers. We look forward to workingwith DeWitt to develop our combined product offering further."

DeWitt senior vice president Edgar Acosta said: "We are very pleased to beoining Argus and benefiting from Argus international reach and wide productrange. We will be able to offer enhanced services to our customers and wewill be developing new products together to meet the needs of our combinedcustomer base."

Terms of the acquisition were not disclosed.

Argus Acquires DeWitt, Expandsinto Petrochemical Reporting

News from Data Vend

London, 12 July 2012

Global energy and fertilizer price reporting agency Argus has introduced anew global composite nitrogen fertilizer index in todays Argus FMB Nitrogenreport. The new index includes prices for ammonia, urea, UAN solutions,ammonium nitrate and ammonium sulphate. The Argus Nitrogen Index isconstructed using 11 pricing points for the Black Sea, the Baltic, the US Gulf,Egypt and the Middle East.

The Argus Nitrogen Index will provide a weekly snapshot of the globalnitrogen market, smoothing out product and geographical volatility to presentan easily understood composite and representative price. Argus hasintroduced the new index in response to industry requests.

Argus indexes are widely used across international energy markets forphysical and derivative trading. They include the Argus Euro-Bob price, which

is the benchmark for northwest European gasoline trading, the ASCI bench-mark, which is the reference price used by Saudi Arabia, Kuwait and Iraq tosell sour crude into the US, and the AFEI, ANSI and cif ARA indexes, whichare used for pricing LPG in Europe and Asia Pacific.

We hope that the new Argus Nitrogen Index will offer the fertilizer industry auseful price reference and potential hedging tool, Argus Media chairman andchief executive Adrian Binks said. We are always happy to develop newinstruments to meet the needs of our customers and the wider fertilizer andenergy markets.

For further information:

Seana [email protected]+44 20 7780 4272

Argus Launches Worlds FirstComposite Nitrogen FertilizerIndex


Seana [email protected]

+44 20 7780 4272

London, 11 July 2012

Leading energy and commodities price reporting organisation Arguslaunched the LNG industrys first west Africa fob (free-on-board) spot assessment, called the AWAF price. Spot LNG volumes in west Africaincreasing and will soon be augmented by exports from Angolas new facility, which should enable a further expansion of the regions spot ma

The new Argus west Africa fob (AWAF) price assessment is designecapture LNG trade at export facilities in Angola, Equatorial GuineaNigeria. The assessment windows cover cargoes for loading withinforward half-month periods, taking into account loadings for the secondthird full half-month periods from the date of assessment.

Argus west African market coverage complements the Argus LNG reports existing suite of Asia-Pacific and European spot price assessmmarket commentary and global netback pricing.

LNG trade is expected to grow in the coming years, as an influx of newlyLNG carriers will increase shipping flexibility, enabling more companibuy cargoes on a fob basis, Argus Media chairman and chief execAdrian Binks said. The launch of the AWAF price assessment in the ALNG Daily report marks a new chapter for the LNG industry, as Abecomes the first price reporting organisation to assess trades at loaports in west Africa.

The Argus LNG Daily report provides spot price assessments for Asia-Pathe Middle East and Europe, information about shipping movemmarket-moving news and analysis. The report has been carefully designprovide global LNG market participants with the critical insights and key statistics and data needed to stay ahead of market developments, as wto help shape commercial strategies.

Argus Launches FOB West AfricaLNG Price


Seana [email protected]+44 20 7780 4272

Singapore, 2 July 2012

Leading energy and commodity price reporting agency Argus tannounced the launch of a new price assessment for Asia-bound cargoIraqi Basrah Light crude, the fastest-growing crude stream in the MiGulf this year. The new price assessment will be published in the daily ACrude market report from 2 July.

Argus has launched its new Basrah Light assessment in response to indrequests to reflect the growing importance of Iraqi crude in the Asia-Pmarket. The assessment will be done by comparing Basrah Lights valuethe average of Dubai and Oman crudes, publishing a differential to

grades official formula price and an outright value.

Increasing Iraqi crude production has helped refiners to compensatdeclining supplies from Iran, the second-biggest crude producer inMideast Gulf. The installation of two single-point mooring platforms off Isouthern coast has buoyed Basrah Light exports to about 2.2mn b/d April from an average 1.6mn b/d in the previous two years, boostinliquidity of spot trade.

Producers of Iraqi crude have sold most of the incremental Basrah shipments to Asia-Pacific, particularly to India and China, where comrefining capacity is expanding. Rising demand from major Asia-Pconsumers and reduced crude exports from Iran make Basrah Light relevant as a base-load crude, enhancing its potential as a future MiGulf benchmark.

Argus Launches Iraqi BasrahLight Crude Assessment for Asia

(continued on the next
http://www.argusmedia.com/http://www.argusmedia.com/http://www.argusmedia.com/http://www.argusmedia.com/http://www.argusmedia.com/http://www.argusmedia.com/


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datawatch July 2012

Back to Summary

(continued from the previous page)

We have introduced this new assessment after industry requests, Arguschairman and chief executive Adrian Binks said. Argus is pleased that wehave been able to quickly respond to our customers and provide a vehiclethat could give greater stability to price planning.

The methodologies used to derive Argus prices are available online atwww.argusmedia.com/methodology.

About Argus

Argus Media is a leading provider of price assessments, businessntelligence, market data, consultancy and conferences on the global crude,oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer andtransportation industries. Argus energy and fertilizer prices are widely usedby leading companies, governments and international agencies as bench-marks in supply contracts, risk management and planning.

Argus is headquartered in London and has more than 400 staff in offices inHouston, Washington, New York, Portland, Calgary, Santiago, Bogota, Rio deJaneiro, Singapore, Beijing, Tokyo, Sydney, Dubai, Moscow, Astana, Kiev,Porto, Brussels, Johannesburg and other key centres of the energy industry.

Argus was founded in 1970 and is a privately held UK-registered company.

News from Data Vend


Jim [email protected]+65 6496 9960

Platts Biofuels Alert (PBF) service launching Sept 1st is new real time productdedicated to the growing Biofuels industry. Global biofuels content willinclude US-Europe-Asia-South America ethanol and biodiesel price assess-ments and commentaries, regional plant operating and production rates,crushing rates, plant projects pages, biofuels and soft commodities news andanalysis, among others.The four distinct content areas will include:1. MTBE2. ETBE

3. Ethanol4. Biodiesel

Whilst Platts has covered biofuels previously in Platts Global Alert and PlattsPetrochemical Alert, the new PBF alert will offer customers completecoverage of Platts biofuels price assessments including our ethanol bench-marks, along with market leading news and commentary in one package.Market Data Biofuels will consolidate data from 11 former categories to BF.

For any further information regarding the Biofuels launch please [email protected]

Platts Biofuels Alert Serviceand Market Data LaunchingSeptember 1st

MDA EarthSat Weather offers a variety of data and reports used throug

the energy, agriculture, and weather markets. In addition to providin

basic data products used by traders worldwide throughout these indus

(historic, ongoing, and forecast temperatures, precipitation, wind,

EarthSat goes beyond the numbers to provide unique datasets tailore

traders in each industry.

2012 U.S Drought Data and Information

With a historic drought currently impacting more than half of the nation, m

comparisons are being made to the Dust Bowl era of the 30s. In respon

the drought, we have compiled precipitation data from across the Plains

Midwest from the 30s and issued a special report on our findings comp

it to the current event. We have also produced special satellite assessm

that provide an overview on the vegetative health of the region. Furtherm

two members of the EarthSat Weather team will be embarking on a Crop

during the

week of

July 23rd,

assessing

t h e

d a m a g e

that theheat and

d r o u g h t

has done

to the

agriculture

f r o m

Nebraska

to Ohio.

They will be providing exclusive updates during their travels on a daily b

giving a first-hand account of how things look from the ground.

We have plenty of other tools that can be used to track the drought suc

our Ag On-Demand global weather interface that has access to over

domestic stations. A screen shot from Ag On-Demand of the percenta

normal precipitation across the Corn Belt since June 1 is seen in the im

below. Daily previous day data and forecast feeds are also availabnumerous weather stations throughout the drought afflicted regions. T

MDA EarthSat products work together to help decision-makers stay ahe

the curve on global weather conditions that have critical impact on

commodities markets.

MDA EarthSat WeatherProduces Exclusive Updateson U.S. Drought Data

June 26, 2012 - EOX Holdings, a wholly owned subsidiary of OTC GlobalHoldings LP (OTCGH), formally announced today that the U.S. Departmentof energy's Western Area Power Administration (WAPA) will use its naturalgas and power forward curves for its Risk Management Program.

Providing internal price validation and highly accurate mark-to-market resultsin addition to price discovery, the forward curves leverage OTCGH's breadthof brokerages. They are derived from the leading independent interdealerbroker's EOXLive broking/trading platform, which is well-known in thecommodities sector for its ability to combine the convenience of electronictrading with voice broking's unique ability to provide market color and createbespoke transactions.

To learn more about EOX Holdings' end-of-day forward curve products andother data offerings, visit our website at www.eoxlive.com.

WAPA Chooses EOXHoldings' Natural Gas andPower Forward Curves

Alejandro [email protected]+65 6496 9949

ZE is continuously growing its data coverage. Our highly flexible data pacan collect information in any electronic format, from any source and afrequency. Since the DataWatch June 2012 issue, ZEMA has addedfollowing data reports to its collection:

ZEMA Adds New Data Reports

Data Source Report

AST State Of Power SystemCFTC Disaggregated Futures and Opons

Commodity Weather Group City Forecast

Elering Losses

Elering Wind Parks

Elering Producon Consumpon

FINGRID Cross-Border Transmission Capacies

ICE ICEU DCO Energy Opons Report

Iroquois Operaonally Available Capacity

Mizuho Futures Opons

Monroe Operaonally Available Capacity

Naonal Fuel Operaonally Available

PetroChemWire Forward Curves

RWE German Power Generaon

Reuters FX Interest Rate Opon Volality
http://www.platts.com/http://www.platts.com/http://www.mdacorporation.com/corporate/index.cfmhttp://www.eoxlive.com/http://www.ze.com/http://www.eoxlive.com/http://www.mdacorporation.com/corporate/index.cfmhttp://www.platts.com/


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datawatch July 2012

Back to Summary

n this article, we continue to discuss how shale gas expansion in the U.S. affects natural gas price projections and wfactors influence its supply and demand (Part One in the May 2012 DataWatch). Liquefied natural gas (LNG)

frequently quoted as a major factor driving demand for this expansion. LNG has its own multiple influencers and

decided that it deserves a separate chapter. LNG prices, when they drop to low levels, may have a damping effec

he development of shale gas plays. The appearance of new LNG producing nations and shifts in global import patte

will have a direct impact on U.S. exports. Other factors, like new commercial uses of LNG as an independent fue

ships and heavy duty machinery, bring another perspective to the argument, and affect demand for LNG in dome

and international markets.

In Dep

Shale Gas: More Complications f

Price Forecast Developers Part Tw

By Olga Gorstenko and Vera Tikhom

LNG to Make it More Confusi

LNG as an Alternative FuelAn abundance of LNG is inspiring ideas for new applications for its use. LNGs no longer viewed solely as a state of gas that is convenient for transporta-ion over large distances, but also as an independent fuel that has manybenefits compared to gasoline and diesel. Compared with other fuels, LNG ischeaper per British thermal unit, and it burns cleaner than other fuel types,which makes it a reasonable solution for jurisdictions with strict emissionreduction targets; for example, a truck powered by a duel fuel LNG-dieselengine emits 75% less NOx and about 13% less CO2 compared to diesel-only powered trucks.

LNG has already been used as an alternative vehicle fuel in heavy-dutyrucks, buses, waste collection trucks, locomotives, and other vehicles in theU.S. for more than 15 years. According to the EIA, the U.S. already boasts anumber of LNG stations, the majority of which are located in California andTexas. There are plans to open a large network of these stations along majorhighways, as shown in Figure 1.

Figure 1: LNG Fuel Stations in the U.S. (EIA)

Aside from state incentivessupporting expansion of analternative fueling infrastruc-ture (for example, NaturalGas Vehicle and FuelingInfrastructure Grants inTexas that offer $250,000 foran LNG station), privatebusinesses also make acontribution to this trend. TheClean Energy California LNGPlant began operations onNovember 11, 2008 intending tobe the major supplier for the CleanTruck Program for the ports of LosAngeles and Long Beach. Chesapeake

Energy committed$150 million to help build a n e

work of fueling facilities along major U.S. interstfrom Los Angeles to Houston to Chicago. UPS hafleet of heavy tractor trucks running on LNG, anbuilding LNG fuel stations along the route linOntario, California and Las Vegas. Volvo Truannounced plans to launch an LNG engine for NAmerica in 2014.

LNG has been considered as an alternative fuel for transportation in other countries, with more than 4LNG-fuelled vehicles used globally. Australia has busing LNG as an alternative fuel to diesel since 20and the Chinese government will release fuel to gregulations for vehicles to support an already exisfleet of LNG-run transportation.

Road transportation is not the only industry targeteLNG producers. The use of LNG to power car passenger ferries was implemented in Norway inyear 2000. Short distance sea traffic accounts for aone-third of all marine transports in the world, and Lis being considered by Europe, the U.S. and Canadan alternative fuel for ferries.

Mining, which consumes significant quantities of dieis already undergoing the conversion of onsite hauvehicles to the use of LNG. Railroads have sta

replacing diesel with LNG to power locomotive engines. Combined heat power technologies, which produce electricity or mechanical power recover waste heat for process use, is another target for LNG producespecially in remote areas where LNG can be delivered without electrinatural gas or oil transmission systems.

LNG is natural gascooled to about -260

(-160C) to a liquid form; allows it to be stored in am

about 600 times smaller thagaseous form. In this compacnatural gas can be shipped in

tankers to receiving terminimporting countries. At th

terminals, LNG is vaporizedgas phase and transporte

pipeline to consumers


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Back to Summary

As with any emerging technology or energy source, such as LNG uses as analternative or even primary fuel, there is often uncertainty about its future.Add to that government policy that oversees often complicated environmentalincentives, and you have a direct impact on demand for LNG and how it willplay out.

The progress of the LNG market is driven by technological advancements,

which in turn are impacted by changing economic conditions, requirementsfor energy-consuming economies and natural gas demand, and moreimportantly, profit margins.

LNG costs can have a weighty impact on LNG development. If they riseconsiderably, all positive backing of the LNG expansion can be diminished oreven eliminated. When added to the fuel cost, they can be justified only whenLNG market prices are sufficiently high.

LNG costs comprise the cost of transportation of the gas to a gas liquefactionfacility, liquefaction, shipping, storage and regasification, as shown in Figure2 . LNG infrastructure is expensive; its construction and operation is heavily

regulated and complex.

The cost of delivery to a liquefaction facility varies substantially depending onthe location of LNG facilities, their distance from the production region andavailability of the pipeline system. While LNG facilities are located alongocean shoreline to ensure easy access to international waterways, theirproximity to gas-bearing plays is crucial in setting transportation costs.

The cost of liquefaction is most contentious and disputable, and is usuallyreferred to as a metric when comparing LNG projects. Liquefaction is typicallythe most expensive element in any LNG project. Newer LNG plants areusually designed to benefit from economies of scale; hence, they are larger,have more efficient trains, and in the case of adjoining plants, have sharedfacilities, thus minimizing unit costs. However, the long-term declining costtrend seems to have been recently reversed. In 2010, Cheniere Energy saidit would charge between $1.40-1.75/MMBtu for liquefaction. In 2012, Domin-ion estimated liquefaction fees at Cove Point of $4/MMBtu. Woodsides Plutoproject announced costs five times greater than plants built a few years ago.

Increasing labor costs, costs of regulatory compliance and an overall risingdemand are said to be responsible for rising liquefaction costs.

LNG is typically transported in refrigerated, insulated tanks in ships. On atypical trip, about 0.1%0.25% of the cargo converts to a gaseous phasedaily, which some ships use as a fuel. Most LNG plants have their own fleetof LNG ships. With the development of LNG markets and an increase in LNGshort-term and spot trades, ships are discharging their cargoes wherever theprices are best, making it a bit more complicated to develop price forecasts.The availability of the operating vessels at each particular point in timebecomes of the utmost importance for producers to who want to exercisearbitrage opportunities. According to various sources, the unit cost of LNGshipping varies from $0.2/MMBtu to $1/MMBtu. LNG receiving terminals, orregasification facilities (located onshore or offshore) receive LNG, store it,vaporize it and send the gas into a pipeline.

Economic Incentives: Cost vs. Price

LNG Costs

Pipeline Liquefaction PlantLNG

Storage Tank LNG TankerLNG

Storage Tank Vaporizers Pipeline

Figure 2: LNG Cost Components

Shale Gas: More Complications for Price Forecast Developers Part

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Regasification and storage costs have not been a topic of any serious dission; typically, a minimum storage and regasification cost is accepte$0.20/MMBtu.

The cost-competitiveness of the U.S. liquefaction projects relative to thosother locations has an impact on prospects for U.S. LNG exports. Infrasture costs are significant, and the upward trend of the liquefaction

prompts developers to concentrate on expansion of already existing facito make use of present natural gas processing plants, pipelines, and stoand loading facilities. This allows reduced costs relative to those that wbe incurred by greenfield projects.

Meanwhile, rising global LNG prices continue to provide encouragementhe development of gas resources. Given the natural gas price forecastnot drop from current levels, project developers will continue buiterminals and sending shipments to more profitable markets.

Demand for LNG in the U.S. is driven mainly by economic factorsverydomestic natural gas prices exceeding those in global markets.

In 2007-2009 the difference between spot natural gas prices in the U.S.Europe was negligible. It changed with rapid shale gas development inU.S. in 2010 and rapid growth in LNG trading around the world. Sincetime, U.S. and European prices of natural gas have diverged. U.S. phave been moving lower while European prices have been constincreasing.

As shown in Figure 3, the spread increased in 2012, when Henry Hub preached levels not seen since 2002. The price of LNG in Japan has meven higher than European prices.

LNG Global Prices

Figure 3: Global Natural Gas Prices (USD/MMBtu)1

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It is widely held that LNG prices can experience a smoothing effect fromcontinuously growing supply. In effect, Asian prices began to move downwardfor July cargoes with new supplies coming into the market:- Australia's Pluto LNG began production in late April2.- Yemen LNG came back online after suspended production since March dueto pipeline attacks.

- Trinidad LNG announced a tender in the middle of June for one cargo of

LNG to be loaded from its plant in mid-August3,- ConocoPhillips resumed shipments from its Alaska plant and expects todeliver four or five cargoes of Alaska LNG this year, all of them to Japan 4.

Nevertheless, Asian demand for LNG remains high, exceeding supply:- Japan's 10 utilities used a record 4.41 million tonnes of LNG in May of 20125- Japan, the world's largest importer of LNG, has been using record amountsof the fuel since the Fukushima disaster.

- State-run Korea Gas Corp (KOGAS), the world's top corporate buyer ofLNG, said its domestic gas sales rose 13.3% year-on-year in May6.

- The top Chinese gas producer, China National Petroleum Corp., announcedits plans to step up sales of LNG to domestic users to nine million tonnes bythe end of 2015 and to encourage use of LNG-powered vehicles as part ofa government push for cleaner energy16.

LNG prices span a range from about $3 per MMBtu in the U.S. to $14 per

MMBtu in Asian markets. European countries are placed in between thosemarks. As shown in Figure 4: Global LNG Estimated August 2012 LandedPrices, LNG prices for August 2012 vary widely around the world.

The price disparity is significant and is a critical driver of U.S. developersinterest in investing in liquefaction projects. That interest relies on a naturalgas price forecast that supports a sustained price gap. Liquefaction projectstake up to four years to permit and build, and are intended to run 15-20 yearsor more. To support investment decisions, it is very important to foreseemarket conditions and market prices over this period of time.

The current wide disparity in natural gas prices is likely to narrow as naturalgas markets become more globally integrated. The question is how quicklythis convergence occurs and to what extent. It is not clear how prices will beaffected in regions with different pricing mechanisms that are under gas ongas competition versus indexed to crude oil prices.

Shale Gas: More Complications for Price Forecast Developers Part T

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Figure 4: Global LNG Estimated August 2012 Landed Prices8

Pricing Mechanisms of LNG Contracts

The basis on which natural gas is sold and priced varies dramatic

between global markets. There are four pricing mechanisms applied

different parts of the world.

1. So-called gas-on-gas pricing prevailing in North America and the U

set in liquid gas markets with a large number of buyer and sellers and limgovernmental intervention. There are multiple pricing points w

benchmarks set by market mechanisms; in the United States, this is He

Hub; in the UK, it is NBP. These markets have extensive pipeline and

storage systems, allowing gas to be traded on spot and future contracts

such conditions, market power is difficult to exercise leading to effic

markets and lower prices.

2. Another pricing mechanism is present when gas is priced in relation

other fuels - usually crude oil - and is quoted by a formula indexed to

prices. This is typical for regions such as Europe and Southeast A

regions that have historically been strongly affected by oil prices. This

market is relatively weak, and price is directly correlated to the pr

movements of oil.

3. Japan, Korea and Taiwan have limited resources and the majority of t

gas is delivered as LNG from the Middle East, Southeast Asia, SoAmerica and Africa. Prior to LNG, power utilities relied on imported crude

and coal. After the oil crisis of the 70s, LNG came into the play; howe

prices remained linked to oil. The LNG price is calculated on the basis of

weighted average of Japan crude oil import price, known

the Japan Crude Cocktail price. The S curve conc

includes a ceiling ensuring that oil shocks would

translate into higher gas prices, and a floor guarantees

seller a minimum price irrespective of a drop in oil price

4. The last pricing mechanism exists in heavily regula

non-transparent markets, where the gas markets

controlled by the state, such as Russia. The gas prices

set on a state level and all supply is entered into a gas p

As shown in Figure 5, gas price movements have historicbeen following crude oil prices. However, in the U.S., oil gas prices ceased tracking each other in 2008 as oil prcontinued to rise and gas prices dropped because ogrowing supply.

Figure 5: WTI Crude Oil Prices vs. Henry Hub Natural Gas Prices*


(continued on the next pa

Cove Point

$2.94Lake Charles

$2.66ltamira

3.17

Rio de Janeiro

$13.90

Bahia Blanca

$15.05

UK

$8.67Spain

$10.24

Belgium

$8.84

India

$12.90

Korea

$14.55 Japan$14.55

China

$14.15


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An increasing and sustained gap encouraged buyers of oil-linked gascontracts to question the value of linking the price of the commodities. As theumber of buyers and sellers of gas in these markets has been increasing,he link to oil prices started weakening.

n particular, pricing for Sabine Pass Liquefactions LNG sales contracts isbased on Henry Hub pricing. The 20 year agreement between Cheniere

Energy, Inc. and BG Group to begin shipping gas is likely starting in 20159

.The contract calls for BG to purchase 3.5 million tons a year at 115% of theHenry Hub price plus a fixed fee of $2.25/MMBtu.

Currently, Asian markets remain supportive of the oil-linked pricing. PeterCleary, Vice President of Strategy and Corporate Development at Santosdeveloper of the Gladstone project), stated that Asian LNG long-term

contracts will remain linked to the price of oil for the foreseeable future, asoil-linked pricing has worked in Asia because buyers are comfortable that oils an established, well-understood and globally tradedcommodityProducers also support oil-linked pricing, (because) strongprices are required to underpin new projects."10

Nevertheless, signs of change in perception of the oil-indexed mechanismalidity have been noted. Thus, while Australian LNG projects continueelling their LNG for a Japan Crude Cocktail price, their pricing curves are

ower than those that existed in 200811

.

n Europe, natural gas prices have been dependent on non-flexible contrac-ual structures and pricing mechanisms for long-term Russian gas exportcontracts with oil indexation. Figure 6 displays Gazproms gas export contractprice stepped mechanism, which clearly follows the level of the Brent price.

The widening spread between natural gas spot markets and oil-linkedcontract prices is putting pressure on the oil indexation mechanism.European utilities are likely to either break the existing contracts withGazprom, challenge provisions in arbitration, or at least not extendcontracts expiring in the near term, as the European utilities are currentlyosing money on power produced from Russian gas. European customers,uch as RWE Group, E.ON-UK or Polish PGNiG, are now challenging the oilnk. Turkeys Botas was the first customer that decided not to extend a 6 bcm

contract expiring in 201212. European customers will continue to minimizemports from Gazprom.

Russia, however, started to accept lower prices for its natural gas and is nowallowing a portion of its sales in Europe to be indexed to natural gas spotmarkets, or regional market hubs, rather than oil prices13. Its possible thatGazprom just applies temporary discounts with the expectation that theghtening market will make oil and gas prices recoup in Europe. Meanwhile,

potential Asian buyers may either try to negotiate an LNG sales price that isdelinked from oil, or at least push for a lower indexed price due to theperceived market effects of North American priced gas.

t is a commonly held expectation that in time, continued globalization ofmarkets will support switching to gas-on-gas markets. The LNG pricing

Shale Gas: More Complications for Price Forecast Developers Part T

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Figure 6: Gazprom Oil-Indexed Gas Contract Pricesvs Natural Gas and Crude Prices

mechanism, if revised, may have a substantial impact on market priceputting a downward pressure on the overall LNG price level for JapanAsia.

Ever since the worlds first commercial LNG plant in the Algerian port cArzew started delivering to the United Kingdom in 1964 under a 15contract, the pattern of the LNG trade has been shifting and changing. Fi7 demonstrates how LNG global trade flows changed between 20052011.

Global LNG Trade: More Opportunities andMore Confusion

Figure 7: LNG Trade Flows

Changes take place in the import ing as well as exporting camps. The nuof LNG producing countries steadily continues to grow, from 8 in 199614

in 2012, with 26 existing terminals and approximately 65 liquefaction termprojects either proposed or under construction.15

Indonesia has remained a leading LNG producer since its first shipme1977, until recently. In 2011, three importing terminals were built incountry. Indonesia, once the worlds largest LNG exporter, now importsthe Middle East to support areas with dense population, while maintaliquefaction terminals located in more remote areas.

Malaysia and Brunei have been producing LNG from offshore gas resesince 1972 and 1983, respectively. Most of Malaysias output, and nearof Bruneis output, are sold to Japan. Malaysia, once the worlds selargest LNG exporter, plans to receive its first LNG imports in 2013.

Europe ceased to be a pure importer when its first LNG export facility stoperation in 2007 in Northern Norway. That was when Statoils Snproject began recovering gas from the offshore Barents Sea gas field.

South America is experiencing growth in its exporting capacity. Argerecently built two export terminals. Baha Blanca, built in 2008, was theof its kind in South America, with a capacity of 400 million cubic feet of nagas per day. Escobar, with a capacity of 500 million cubic feet, enservice in 2011. In 2010, the first Peruvian LNG came to life in PaMelchorita.


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continued from the previous page)

Shale Gas: More Complications for Price Forecast Developers Part Tw

In Dep

Papua New Guinea is likely to build an exporting terminal (a joint venturebetween ExxonMobil, Oil Search, Santos, AGL, Nippon Oil and MineralResource Development Corporation) in Port Moresby in 2013.

New gas discoveries in East Africa may put Mozambique and Tanzania into the

op ranks of

ze datawatch - july 2012

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