DKI Sling for Dubai, Kuwait and India

Singapore Exchange (SGX) has launched a spot index which will enhance price discovery and risk management of liquefied natural gas (LNG) imports into India. The index will cover LNG trade in Dubai, Kuwait and India (DKI) Sling (SGX LNG Index Group).

The DKI Sling offers a transparent and trusted reference price for LNG Delivered Ex-Ship under flexible terms to key ports in the three countries, complementing an increase in spot trading volumes, said SGX.

It provides an independent physical price marker as the industry moves away from oil-linked pricing and towards gas-on-gas pricing, said SGX.

SGX’s wholly owned subsidiary, Energy Market Company (EMC), as the index administrator, will publish the DKI Sling every Monday and Thursday.

The new index was developed with London-based Tullett Prebon, one of the world’s largest brokers of physical LNG cargoes.

Michael Syn, Head of Derivatives at SGX, said: “The DKI Sling aims to improve benchmarking and risk management in the Middle East and India region, meeting the specific needs of the physical LNG market as it evolves.”

Melissa Lindsay, Global Head of LNG at Tullett Prebon, said: “We see the development of a trusted and transparent price for the Middle East and India region crucial in helping LNG participants mark-to-market trading exposure. fii-news.com