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Singapore makes progress as LNG trading hub

2017/10/06 12:00

Asian Viewpoint: by Satoshi Hagimoto

  

In liquefied natural gas (LNG) markets, large-scale production of natural gas by US, Africa, and Russia are expected to start up successively going forward and global LPG supply is seen to be in surplus. The Asia Pacific LNG Summit organized by CWC was held in Singapore during Sep 20-21. Rim Intelligence interviewed participants at the summit regarding future perspectives of LNG trading. Some sources in the summit said that oversupply of LNG would last until 2023. On the other hand, demand is stable and showing signs of expansion. A US LNG production company mentioned that Asia accounts for more than half of the increase in demand. Most Japanese trading houses have established trading departments for LNG in Singapore, with some of them making Singapore their core for LNG trading. LNG sales companies around the world, including Asian utility companies, are enhancing their sales to emerging countries in South Asia and Southeast Asia that import LNG. JERA trading in Singapore, a subsidiary of JERA Co in Japan, which is in turn a joint venture between Tokyo Electric Power Co and Chubu Electric Power Co, is expected to commence LNG trading next year in addition to coal trading. JERA has focused on imports to Japan heretofore, but will look at reselling in the future as well. Meanwhile, Pavilion Energy Co, a major energy company in Singapore, agreed to share receiving terminals Uniper, an energy company in Germany. Under the agreement, Pavilion Energy is able to use Uniper's terminals in Rotterdam and London while Uniper can use Pavilion Energy's terminal in Singapore. With LNG trades in Asia expanding, both companies are expected to have greater flexibility trading through this agreement.

 

 

Singapore : Energy Desk  Satoshi Hagimoto  +65-6345-9894
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