SGX sees LNG screen trading next year

Singapore Exchange said in a report on Thursday it expects screen trading of liquefied natural gas to start in 2017 once liquidity builds.

SGX, which recently revealed the first trade of the new SGX FOB Singapore SLInG LNG derivatives contract, said this in a white paper published on Thursday on the development of Asia’s LNG market.

According to the report, SGX expects this year first spot LNG cargoes to be indexed to SLInG, especially cargoes from “new un-contracted Australian and US projects and the potential re-contracting of long positions from over-contracted consumers, subject to destination restrictions in their contracts”.

“The development of SLInG as a true gas price for LNG in Asia has been timely and there is a clear window over the next 1-2 years for it to gather acceptance and become the reference price for spot and hedge trade in the Asia Pacific Region,” the report said.