ICE UK Natural Gas

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The ICE UK Natural Gas Futures contract, first listed in January of 1997, is used primarily to manage price risk in the underlying physical natural gas market, as an investment vehicle, to effect physical delivery into the UK gas grid, and to enable users to separate/reference the price element within a long-term physical gas contract.

The contract results in physical delivery only if position(s) are not closed out prior to expiration. Physical delivery takes place within the UK natural gas grid at the National Balancing Point (NBP). Delivery must be made equally throughout the delivery period and equivalent to the number of lots open at the time of expiration.

Uses

Natural gas is a fossil fuel source of energy. Due to economical and ecological advantages that it presents as well as its safety qualities (e.g. reduced flammable range), natural gas is an increasingly attractive source of energy in many countries.[1]

Data Quotes

ICE offers data quotes on a subscription basis.[2]


UK Natural Gas futures
Exchange ICE
Settlement Cash settled
Contract Size One lot equals 1,000 therms of natural gas per day
Pricing Unit The contract price is in Sterling and pence per therm
Tick Value Futures/Blocks - 0.01 pence/therm

EFPs/EFSs - 0.005 pence/therm

Contract Months 78-83 consecutive month contracts.

11-13 consecutive quarters. Quarters are strips of three individual and consecutive contract months. Quarters always comprise a strip of Jan-Mar, Apr-Jun, Jul- Sep or Oct-Dec.

13-14 consecutive seasons. Seasons are strips of six individual and consecutive contract months. Seasons always comprise a strip of Apr-Sep or Oct-Mar.

6 consecutive years. Years are strips of twelve individual and consecutive contract months comprising Jan - Dec.

Months, quarters, seasons and years are listed in parallel.

Last Trading Day Trading will cease at the close of business two Business Days prior to the first calendar day of the delivery month, quarter, season, or calendar.
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A Open: 07:00 London (local time) Close: 17:00 (Daily contracts 16:00) - London (local time)
Ticker Symbol N/A NBP
Price Limits N/A There are no price limits.

Notes

Contracts are traded through the ICE Platform, by the Exchange of Futures for Physicals (EFPs), the Exchange of Futures for Swaps or Block Trades.

References

  1. Characteristics. UNCTAD.org.
  2. The most valuable commodity is information. ICE.

UK Natural Gas Contract Specs