Singapore stakes claim as future Asia LNG trading hub


Singapore has been identified as being the preferred location of an Asian liquefied natural gas (LNG) trading hub, according to a new survey.

Deloitte surveyed more than 80 senior energy industry leaders from across the Asia Pacific region at the second annual Deloitte Energy Trading Summit in Singapore this week. The survey revealed 74% believe Singapore would attain the position by 2023. China (10%) and Japan (10%) were also identified as other potential hub locations.

“Singapore fits all the criteria of an ideal trading hub,” Mike Lynn, Deloitte Oil and Gas Asia Pacific Regional Leader, said. “It has a world class trading infrastructure already in place, excellent institutions, offers low geopolitical risk whilst situated in an ideal geographic location with deep and liquid financial and capital markets, in addition to an attractive tax and regulatory regime.”

As Asia evolves as a trading hub, the region will require a liquid and transparent LNG pricing benchmark. More than half (52%) of survey respondents said the Platts Japan/Korea Marker (JKM) will be the most widely adopted for spot trades in 2023, followed by the Henry Hub Natural Gas Spot Price (16%) and the SGX LNG Index Group.

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