As global natural gas market volatility continues to raise questions about the effectiveness of established futures benchmarks, Abaxx Technologies Inc. is pursuing a solution through physically-settled LNG contracts.

Through a unit based in Singapore, Abaxx is preparing to launch physically-settled contracts for the three major liquefied natural gas markets: Northwest Europe, North Asia Pacific and the Gulf Coast. The contracts could serve as an alternative to financially-settled instruments like the Japan-Korea Marker (JKM) that currently dominate international gas trading, including for LNG.

In an email, Abaxx senior management – including Chief Commercial Officer Joe Raia, President Dan McElduff and Chief Economist David Greely – explained to NGI how the contracts could aid...