SINGAPORE: Singapore is boosting efforts to establish itself as Asia’s liquefied natural gas (LNG) trading hub, looking at third party spot imports and a second LNG terminal, while LNG bunkering services will start next year.
The city state, already one of the world’s leading oil trading centres, is vying with Tokyo and Shanghai to become Asia’s main pricing hub for the emerging LNG market as the fuel moves away from being traded almost exclusively through long-term contracts.
“These developments will increase the vibrancy of the Singapore gas market, and grow its regional footprint,” trade and industry minister S. Iswaran said at the opening of the Gas Asia Summit.
Singapore already has an LNG price index, the Singapore Exchange’s SLInG, and has developed infrastructure like storage tanks to support trading activities in the region.
LNG throughput capacity at its Jurong Island terminal will rise by 5 million tonnes per annum (mtpa) to 11 mtpa early next year, while a fourth storage tank at the site will be completed in 2018, Iswaran said. Singapore was also considering a second LNG terminal, he said, without giving details.
