NGX to provide key natural gas reference price for the Alberta Government

NGX Alberta Market Price Index to be used to calculate production royalties

CALGARY, Dec. 7 /CNW/ - Natural Gas Exchange Inc. (NGX), a wholly-owned subsidiary of TMX Group, which offers trading and clearing services for natural gas, crude oil and electricity contracts, today announced that has it has agreed to provide the Alberta Department of Energy with an Alberta natural gas price index, referred to as the Alberta Market Price (AMP).  The AMP is a volume weighted average of cleared transacted prices for all natural gas delivered in a calendar month at the NGX Alberta market centre on the TransCanada Alberta System. The Department of Energy will use the AMP to calculate its Gas Reference Price, forming the basis of the royalty obligations for Alberta energy producers. 

"NGX has unique expertise in providing accurate, reliable and timely index data," said Peter Krenkel, President and CEO, NGX.  "We are very pleased that we are able to provide this important service to the Department of Energy."

NGX's Alberta natural gas products allow buyers and sellers to transact in a variety of instruments including fixed, basis and index contracts denominated in both Canadian and US dollars. These transparent and cleared transactions will be captured in the AMP calculation.

The launch of the new pricing regime is planned for January 2011.  NGX will also make the AMP available on www.ngx.com daily. 

About TMX Group (TSX-X)

TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver.  For more information about TMX Group, visit our website at www.tmx.com.

For further information:

Carolyn Quick
Director, Corporate Communications
TMX Group
416-947-4597
[email protected]