In a keynote address to Gastech 2015 on Tuesday Teo Eng Cheong, ceo of International Enterprise Singapore, noted the country had seen strong and steady growth in its LNG trading sector and now had more than 30 companies with a trading or business development presence.
“To support trading, you will need to have a good price discovery mechanism, and an Asian LNG price will be helpful despite the reduced tension and pressure because of the Asian premium phenomena in the past,” Teo said.
To try an achieve this the Energy Market Company has launched a weekly index the FOB Singapore SGX LNG Index Group (SLInG). The index is based on weekly submissions from around 20 international LNG players offering their assessment on prices.
“We hope that SLInG will evolve to be the Asian LNG price over time,” he said. As neither a major producer or consumer of LNG Singapore was seen as well placed to play role in neutral price setting as it does for some other commodities.