Abaxx pays physical cargo players for exchange indexing on contracts. It then promotes LNG contract indexing to shareholders as organic.
In March 2025, Abaxx announced that “two Asia-based counterparties” had agreed to trade an LNG cargo with the transaction price indexed to Abaxx GOM LNG futures. It continues to say that the “adoption” of the Abaxx exchange in this transaction represents “confidence in the strength of [Abaxx’s] contracts”.
In a discussion with Abaxx CMO, Shanmei Lim, it was revealed that Abaxx pay “cash bounties” for “physical players” to index their cargo to Abaxx, who “do not even have to trade on our exchange”.
"So one of the things that we're actually trying to do now is we're trying to incentivize the adoption of Abaxx as the LNG reference. So we're actually incentivizing physical players right to actually use our price to index their cargo.
And they do not even have to trade on our exchange. They don't need to trade futures, but we're actually offering like a cash bounty if they're willing to have Abaxx as a reference in their contract.
And where we're offering a pretty attractive number there and we've got more than one cargo, you know, I think with budget it, probably between 8 to 10 cargoes because for us, the moment you get adoption as a reference, that's when the participants initially need to hedge their risk, right? And ultimately, that should somehow fall back to us in terms of trading for our units." – Abaxx CMO, Shanmei Lim
Nowhere on their 25 March 2025 announcement does Abaxx disclose that these LNG reference contracts are only obtainable with “cash bounties”.
Abaxx has been paying “cash bounties” for over a year for LNG contract adoption. How many of these counterparties have hedged risk on the Abaxx exchange?
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