Tullett Prebon Voted Top Broker In Electricity Products In The 2014 Risk & Energy Risk Commodity Rankings

LNG Milestones

The LNG desk at Tullett Prebon was established in response to growing demand from existing European gas customers for diversified sources of supply. At the time, LNG arbitrage was dominated by a few players, who limited outside access to the market and few people considered brokers could add any value in such a closed market. Tullett Prebon saw this differently and we set out to develop transparency, liquidity and wider growth in the market.

Since then, perceptions of the LNG market have come a long way. Counterparties, once skeptical of the role a broker could play, are now our valued clients. They rely on the knowledge and expertise we provide, and welcome the confidentiality and trust on which we build our partnerships. We’ve broken down barriers, led innovation and we continue to drive development in the market. And with new participants and trade routes continually emerging, LNG is becoming a growing part of the energy mix and the value we add is increasingly crucial.

Here are some of our achievements so far:

Intelligent thinking

  • We opened our LNG desk in October 2007 aiming to bring buyers and sellers together, to introduce new participants and to deepen the pool of liquidity in the marketplace.
  • To improve transparency, we developed comprehensive LNG intelligence - raising the standard of data available anywhere in the market- a fundamental step toward a more flexible and effective market.

Spot on

  • In 2008 we began closing LNG spot deals under creative and original structures.
  • Initially met with scepticism - today there’s a thriving and increasingly dynamic spot market offering ready access to supply and buyers.

Broadening horizons

  • By 2012 we had arranged our first medium term deal, extending the proven scope of services offered by Tullett Prebon LNG.
  • We now arrange more LNG cargoes worldwide than ever believed possible and provide an invaluable bespoke service across the entire LNG stream to all our customers.

From physical to financial

  • The emergence of a transparent Far East spot LNG price, poses a game changer for the physical market, and in 2012 we brokered our first cargo indexed to Platt’s Japan Korea Marker (JKM).
  • In lieu of the growing need for price risk management in LNG, we’ve been instrumental in the development of the financial market for LNG- turning a contested idea into a burgeoning commodity market.

Paper view

  • Embracing technological advances we have been the first broker to trade OTC and cleared LNG swaps on screen. In Spring 2012 we added JKM and EAX swaps to the Tullett Prebon Trayport platform: tpENERGY.
  • We now operate a hybrid voice and electronic broking system, again pioneering greater transparency in LNG.

Tomorrow and beyond

  • We actively sought the entrance of clearing houses in August 2012 to the JKM swaps market. Clearing houses in August 2012 to the JKM swaps market. Clearing swaps is part of the solution to removing some of the credit and contract issues that can delay or hinder the active trading of financial LNG for many companies.
  • We continue to strive to bring down the legal and operational barriers to entry that inhibit further growth in the market.

LNG House of the Year in the Energy Risk Asia 2012

  • After 5 years of growth, we received recognition for our "outstanding commitment to developing both physical and derivatives trade in the Asia liquefied natural gas (LNG) market" as Tullett Prebon took the award for Natural Gas/LNG House of the year in the Energy Risk Asia Awards 2012.
  • Energy Risk reported, "from playing a pivotal role in establishing an LNG swaps market through to facilitating physical transactions by introducing counterparties and disseminating information, Tullett Prebon is at the cutting edge of the Asian LNG market."
  • Visit the Tullett Prebon Press Office for further information.

For further information please contact:

Tullett Prebon LNG Desk
Tel: +44 (0)20 7200 7025