The Intercontinental Exchange (ICE) has revealed plans to extend trading hours for its European gas and power futures to match the 22-hour trading cycles of the United States’ Henry Hub and JKM (Japan Korea Marker) markets. ICE aims to streamline trading flows between Europe, the United States and Asia, giving traders more ways to manage risk amid volatile gas markets. ICE is also helping traders hedge risks by pricing these contracts in USD/MMBtu.
More than 103 million Dutch TTF gas contracts have changed hands on ICE in the current year, a record for the exchange as Europe’s demand for U.S. LNG keeps climbing. TTF and JKM LNG futures contracts also set new records, signaling deeper liquidity as well as Europe’s shift away from Russian gas. ICE is expanding its toolkit to help energy investors bridge regional markets, manage wild price swings and adapt to unpredictable supply routes. Longer trading windows coupled with stronger currency flexibility are expected to attract even more participants to the markets and tie global gas hubs closer together.
Europe’s LNG imports surged in early 2025, driven by strong demand and efforts to replace Russian pipeline gas, with imports from Russia reaching record highs despite political tensions, though the EU agreed to phase them out by 2027.
While overall gas consumption was expected to slightly decline in 2025 due to renewables, LNG volumes significantly increased in the first half of the year, making Europe the key driver in the global LNG market and impacting Asian buyers. The continent increased its LNG imports in the first half of 2025, reaching a record 75 billion cubic meters (bcm), good for a robust 40% Y/Y increase. The U.S. supplied 29.6 million tons (about 40 bcm) while Russia supplied 8.0 million tons in H1 2025.
The U.S. natural gas rally has lately hit the skids, with prices pulling back from a two-year high of $5.22/MMBtu on December 5 to $4.06/MMBtu in Monday’s session, the lowest level since late October. Europe’s natural gas prices have also continued their downtrend, falling to €27.50/MWh on Monday.
By Alex Kimani for Oilprice.com
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