Company News
Redwood Markets Launches U.S. LNG Cargo Date Swaps Inside the Redwood Marketplace
HOUSTON, February 24, 2021 –Redwood Markets Inc. are pleased to announce the launch of United States Liquefied Natural Gas (LNG) Cargo Date Swaps inside the Redwood Marketplace LNG Trading Platform. The Redwood Marketplace is an online commodity trading platform that enables buyers and sellers of physical liquefied natural gas (LNG) to negotiate and confirm commercial terms while offering central market efficiency, customized complex markets, and multiple trading formats to the global community of LNG stakeholders.
Cargo Date Swaps are intended to address the growing market for loadings of FOB U.S. LNG. The growing market is increasingly complicated by the uncertainty of shipping logistics coupled with narrow loading windows at U.S. liquefaction terminals. U.S. LNG projects require their capacity holders and customers to decide whether they wish to lift or cancel cargoes by a specific date each month. These companies are faced with 4 options:
Lift the cargo in a vessel they control
Sell the cargo FOB (this can also be via a FOB/DES deal)
Swap the lifting date of the cargo for one that offers better logistical efficiency and potentially profit
Cancel the cargo
The first 2 options have existed for some time and are well understood by cargo holders; however, the third option is one that can only be addressed currently by offering the cargo to potential counterparts either directly or via a broker. The Redwood Marketplace offers a faster and more discreet approach.
“U.S. LNG Cargo Date Swaps are a new addition to the Redwood Marketplace designed to initially address the specific needs of U.S. off-takers who are contractually exposed to significant shipping risks,” said Ajay Batra, President of Redwood Markets. “The platform allows off-takers to easily swap their lifting dates with others that have more flexibility, reducing the risk to all off-takers and creating a more efficient U.S. LNG market. Additionally, the platform allows off-takers to anonymously list their need without having to give up their name and situation before finding a trading partner. The platform is designed to support global DES/FOB cargo swaps/exchanges as well and we plan to announce this feature in the next product release in Q2 this year.”
U.S. LNG Date Swap Markets: Frequently Asked Questions
The U.S. LNG Cargo Date Swap markets are available today. To find out more or to request access to the Redwood Marketplace, please contact Redwood Markets at the email address below.
CONTACT
Redwood Markets
Ajay Batra
info@redwoodmarkets.com
About Redwood Markets Inc.
Redwood Markets Inc. is the operator of The Redwood Marketplace, an online venue for trading physical liquefied natural gas and other commodities. Redwood Markets specializes in the evolution of commodity markets by providing tools and distribution mechanisms for solutions that reduce the friction involved in negotiating and executing commodity transactions. Through the systematic and planned reduction of trading impediments, Redwood Markets provides a forum where liquidity can be optimized, and thus increasing investment and opportunity for market participants. Find out more about Redwood Markets at http://www.redwoodmarkets.com/