Government committed to develop Singapore as LNG trading hub: Teo Eng Cheong

International Enterprise (IE) Singapore chief executive Teo Eng Cheong said the Republic can play a role in the formation of a neutral liquefied natural gas (LNG) price in Asia.
International Enterprise (IE) Singapore chief executive Teo Eng Cheong said the Republic can play a role in the formation of a neutral liquefied natural gas (LNG) price in Asia. PHOTO: ST FILE

SINGAPORE - Singapore can play a role in the formation of a neutral liquefied natural gas (LNG) price in Asia, much like it already does in commodities like oil, rubber or iron ore, said International Enterprise (IE) Singapore chief executive Teo Eng Cheong.

This is especially as "bright sparks" are beginning to emerge amid the slump in global liquefied natural gas (LNG) prices, including a more liquid market for LNG trading.

"A well-supported Asian LNG price will be helpful for LNG trading in Asia," noted Mr Teo, in his keynote address at the Gastech energy conference at the Singapore Expo on Tuesday.

He added that he hopes the Singapore SGX LNG Index Group (SLInG), a weekly index based on the submissions from international LNG players who offer their assessment of LNG prices this end, will "evolve to be the Asian LNG price over time".

The index, launched by the Energy Market Company in September, now comprises about 20 players.

At the same time, the long-term drivers for LNG "remain valid", said Mr Teo.

"While we have seen subdued Asia demand because of slower economic growth, there is a growing desire for cleaner air and environment in Asia."

In Singapore, for instance, the Singapore LNG Terminal began commercial operations in May 2013, while the Energy Market Authority announced in May this year the shortlisting of four companies to supply Singapore with LNG, he noted.

The Government "remains committed to growing LNG as an alternative fuel source and to develop Singapore into a LNG trading hub", said Mr Teo.