News
FOR IMMEDIATE RELEASE
The Market for U.S. Gulf Coast LNG: Introducing Standard Trading for Non-Standard Liquefied Natural Gas
The Market is Here
HOUSTON, March 14, 2018 – Redwood Markets Inc. is pleased to announce the launch of standardized instruments for the trade of United States Gulf Coast Liquefied Natural Gas (LNG) through it’s online trading platform, the Redwood Marketplace.

Beginning in April 2019, standard weekly-loading markets will be available for buyers and sellers to negotiate and trade cargoes of physical LNG for delivery FOB at the notional Redwood Gulf Coast Hub that aggregates multiple loading terminals.

By concentrating liquidity at a single pricing point, buyers and sellers can expect to see improved transparency, greater access to new markets and counterparties, and a new way to manage volatility and risk in their operations.

The Time is Now
The market for U.S. LNG has steadily been growing and rapidly becoming a key supply source for global natural gas demand. With destination-free FOB terms, readily accessible low-cost supply and the growing export capability of the U.S. Gulf Coast, it’s now time to create a central venue to consolidate trade.

The Redwood Gulf Coast Hub is designed to aggregate LNG supply and demand and increase the liquidity level and ease of execution for buyers and sellers in the region. In conjunction with the launch of the hub, Redwood will also be generating and distributing market data and a new regional benchmark to assist buyers and sellers with their hedging strategies.

Contact us today to try it out, risk-free, and experience the future of trading LNG.

Trading the U.S Gulf Hub
  • 12 Weekly FOB Instruments
  • Standard Gulf Coast Specification
  • Detailed LNG Confirmation
  • Anonymous Bids and Offers
  • Settlement Price Publication
The Redwood U.S. Gulf Coast LNG Hub enables buyers and sellers to post anonymous orders for physical cargoes into fixed weekly instruments. Once matched with a pre-approved counterparty, you can refine your confirmation details, including your SPA and other key documents. Settlement prices will be provided for each instrument daily to create an ongoing central marker for market participants and analysts to access as an independent spot curve.

RWUS Price Benchmark: Redwood U.S. Gulf LNG Price Index
LNG markets have complex pricing relationships that are challenged by the lack of underlying market liquidity and transparency. Due to the size and value of an LNG cargo transaction, there is always a proportionately larger amount of bid and offer activity than there are transactions. The RWUS is a new price benchmark that aggregates on and off-screen transactions but also incorporates live bids and offers that are open to market execution risk on a level playing field. The inclusion of all components of market data ensures that the RWUS incorporates the most robust data set possible. Powered by the Redwood Marketplace LNG Trading Platform and the Redwood U.S. Gulf Coast LNG Hub, RWUS utilizes open-access, transparent, and real-time market data to ensure reliable benchmark price formation.

Contact us to Find Out More About the RWUS Index and the Redwood U.S. Gulf LNG Hub – Begin Posting Bids and Offers Today!

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CONTACT

Redwood Markets
Dan Zastawny
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/

 
 
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