Roughly a year after CME Group launched its U.S. liquefied natural gas (LNG) futures contract, the first ever available in the world for physical LNG delivery, it has yet to trade as the spot market continues to evolve and global players have long been slow to adopt new financial tools in their deals. 

LNG Deliveries

Developing a futures contract is a complex process that involves a wide variety of stakeholders and market input. It often takes time for trading volume to grow, particularly in the LNG market, which for decades has been dominated by rigid long-term deals that have only recently given way to more spot transactions as new buyers and sellers have entered the market. The Covid-19 pandemic has also impacted global natural gas trade.

“All I would point out here is that LNG is a...