CME and Cheniere Agree to Develop U.S. LNG futures Contract

CME Group announced today an agreement has been reached with Cheniere Energy through which CME Group will develop an LNG futures contract with physical delivery to Cheniere's Sabine Pass terminal on the U.S. Gulf Coast.

"In recent years, the shale revolution has unlocked abundant supplies of natural gas here in the U.S., creating new risks and opportunities for producers, processors, consumers and traders," said Peter Keavey, CME Group Global Head of Energy. "Through its Sabine Pass liquefaction facility, Cheniere is delivering Henry Hub-indexed natural gas to the world in the form of LNG. This agreement with Cheniere is significant because it will be the foundation for developing a new LNG risk management tool for producers, consumers and traders around the globe, while further cementing the role of Henry Hub Natural Gas futures as the global gas pricing benchmark."

Cheniere's Sabine Pass LNG terminal first started exports in February 2016, and currently operates four trains. A fifth train is under construction and a sixth is fully permitted. Cheniere is also constructing a separate LNG export facility outside of Corpus Christi, Texas.