Freeport LNG and Redwood Markets Inc. have announced the launching of a virtual private storefront for selling LNG cargoes inside the Redwood Marketplace. The Redwood Marketplace is an online commodity trading platform that enables buyers and sellers of physical LNG to negotiate and confirm commercial terms while offering efficiency, standardisation and price discovery to the global community of LNG stakeholders.
The Freeport Private Storefront enables Freeport LNG, as the host, to negotiate and match physical, bilateral LNG transactions with potential LNG off-takers in a variety of online trading formats with multiple options for transparency. The advantage of the private storefront is to bring efficiency of online trading to the buyer or seller LNG requirements without losing the direct, private connection between the respective parties.
“The number of participants in the global LNG market place has increased substantially over the last decade. The Freeport LNG storefront will streamline interactions. It will also allow us to efficiently and transparently provide counterparties direct access to Freeport LNG’s spot cargoes,” said Hugh Urbantke, Executive Vice President and Chief Commercial Officer at Freeport LNG. “Freeport LNG is an innovative operator that embraces new technology and business systems. The US shale gas revolution brought about massive changes for Freeport LNG and now, today, we see online commodity trading platforms exclusively tailored for LNG as another disruptive technology that needs to be adopted early on.”
“Private storefronts are a new addition to the Redwood Marketplace designed to address the evolution of the physical LNG market,” said Ajay Batra, President of Redwood Markets. “By encouraging buyers and sellers to use the same trading formats available in the open-access markets the hosts of private storefronts can help bring liquidity to their trading requirement and, in time, to the broader, open-access markets,” said Batra.
Freeport LNG and Redwood Markets intend to launch the Freeport Private Storefront in November of 2019.
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/17092019/freeport-lng-launches-virtual-lng-cargo-trading-storefront/