OREANDA-NEWS. February 05, 2016.  SGX Commodities has published a white paper on the development of Asia’s LNG market, looking in more depth at the dynamics that are driving the growth of the spot market both in Asia and globally, and the subsequent need to develop a trusted price benchmark.

  • Demand for natural gas in Asia is growing, with LNG providing a cost effective means of transporting it across a geographically diverse region. Asia is expected to make up more than half of the projected 65% increase in global demand for natural gas from 2010 – 2040.
  • Supply growth is outpacing demand, and this is impacting market dynamics - price volatility and uncertainty over the coming years will continue to support the shift to shorter term contracts and the growth of the spot market in Asia.
  • Spot trading volumes currently represent 5% of the market, though this is expected to grow to about a third of the market in the years ahead - Asia needs a price benchmark to support this.
  • The core features of SLInG, including methodology and participant makeup, mean it is well-placed to become a trusted and market-representative price for LNG in Asia – and its home in neutral Singapore, an increasingly important commodity trading hub and at the epicentre of Asian trade flows, underpins this.

Click here to read the full white paper – Creating an Asian Market for LNG

Click here to view the infographic on creating an Asian market for LNG