Singapore plans to establish domestic gas trading market
Singapore is aiming to establish a domestic gas trading market as it looks to become the centre of LNG trading in Asia.
“To enhance the trading environment, we plan to establish a Secondary Gas Trading Market (SGTM) in Singapore, where gas buyers and sellers can trade gas on a short-term basis domestically,” S. Iswaran, Minister for Trade and Industry, said on Monday at the opening of Singapore’s International Energy Week (SIEW).
“An SGTM can yield several potential benefits. First, it will allow domestic gas price discovery that reflects Singapore’s demand and supply conditions. Second, gas users will be able to complement their portfolio of long and medium-term gas supplies with short-term supplies, so that they can optimise their gas supply portfolios and mitigate price volatility,” Iswaran said.
According to Iswaran, such a market will enhance Singapore’s position as a hub for LNG and gas trading activities and pave the way for the potential establishment of a gas futures market.
The Energy Market Authority will take steps to systematically develop the market, following reviews of gas trading in other jurisdictions such as Belgium, the Netherlands and the UK, he said.
“EMA will issue a consultation paper today to seek industry feedback on a proposed market design and implementation roadmap, as well as on the establishment of an industry working group to deliberate on the details for implementing an SGTM in Singapore,” he added.
LNG World News Staff; Image: Singapore LNG