ASX Wallumbilla Natural Gas Futures to go live 19th August 2024
Thu 6 Jun 2024
As per Notice 0643.24.06, Market Participants are advised that ASX has formally lodged the Rules and Procedures with ASIC for the new deliverable Wallumbilla Natural Gas Futures Contract. Please refer to the Operating Rules and Procedures for details regarding the Rule Change. These Rules come into effect on trade date 19 August 2024, subject to final regulatory approval. The first contract month will be the October 2024 contract, with the first Futures delivery process to commence 24 September 2024 for gas to be delivered from 1 October 2024. Details of the delivery process can be found in the attached Wallumbilla Gas delivery guide.
The Wallumbilla Natural Gas Futures contract has been developed in conjunction with the Australian Energy Market Operator (AEMO) and is designed to support Australia’s east coast gas market by providing a transparent forward price curve out to 3 years. The contract will also help to improve liquidity in the Gas Supply Hub (GSH) and provide an additional hedging tool that allows gas market participants to efficiently manage their risk exposure.
Confirmed Contract Specifications and Pricing
| Commodity Code | GZ |
| Go live date | 19 August 2024 |
| Contract Unit | One hundred (100) Gigajoules (GJ) of natural gas per day over the period of one Calendar Month as determined by the Market Operator for delivery at the Delivery Point that is the Wallumbilla High Pressure Trade Point (as defined in the GSH Exchange Agreement) operated by AEMO. |
| Type of Contract | Deliverable via a Delivery EFP |
| Effect of Contract | In fulfilment of each Contract the Buyer and Seller must enter into a Delivery EFP on the terms directed by the Approved Clearing Facility |
| Contract Months | January, February, March, April, May, June, July, August, September, October, November, December, available to trade the next 36 months. The first contract will be October 2024. |
| Trading Hours | 10:00am – 4:00pm AEST/AEDT |
| Manner of quoting Futures Price | Prices are quoted in A$ and cents per GJ of gas per day |
| Minimum fluctuations for quoting Futures Price | $0.01 per GJ of natural gas per day. |
| Final Trading Day | Five (5) business days prior to start of the commencement of the Settlement Month |
| Time at which trading ceases on the Final Trading Day | 12:00 noon (except that Block Trades may be agreed at any time up to 3:00 pm on the Final Trading Day and that between 12:00 noon and 3:00 pm on the Final Trading Day the Block Trade minimum threshold is 1 lot) |
| Exchange for Physical (EFP) | EFP’s allowed |
| Final Time by which an Exchange for Physical transaction may be submitted for cancellation | 3:30 pm on the Final Trading Day (note this is a standard Exchange for Physical) |
| Block Trades | Block trades allowed subject to threshold size of 5 lots. Where a Block Trade is agreed between 12:00 noon and 3:00 pm on the Final Trading Day, then the threshold for that Block Trade will be 1 lot. |
| Final Time by which a Block Trade may be submitted for cancellation | 3:30 pm on the Final Trading Day |
| Settlement Value | The Settlement Value shall be calculated by the Approved Clearing Facility by multiplying the Daily Settlement Price on the Final Trading Day by 100 and multiplying by the number of days in the calendar month. |
| Delivery | On or by the Settlement Day: (a) Seller shall register an Exchange for Physical with the Market Operator; and (b) Buyer shall register an Exchange for Physical with the Market Operator, in accordance with the Procedures and the operating rules of the Approved Clearing Facility. The physical transaction component of that Delivery EFP shall be a GSH Transaction for the prescribed GSH Product. |
| Final time by which Seller must enter into and report Delivery EFP transaction to the Market Operator | 4:30pm on the second Business Day following the Final Trading Day |
| Final time by which Buyer must enter into and report Delivery EFP transaction to the Market Operator | 5:30pm on the second Business Day following the Final Trading Day |
| Fees | Headline ASX24 Exchange Fee: $30 per lot per side |
| Vendor Codes | Bloomberg: WGPA, Refinitiv: YGZmy (1) |
(1) m= month code, y = year code
What do I need to do by when?
ASX24 Trading and Clearing Participants and end users wishing to trade the Wallumbilla Natural Gas Futures Contract should ensure that internal systems and vendors are set up to support the new listing prior to go-live.
Need more information?
Issued by
Natasha van der Kolff,
Product Manager, Commodities
Contact information
or
02 9338 0000
www.asx.com.au/contact