Singapore is planning towards the development of Singapore as Asia’s liquefied natural gas trading centre.
With the Asian continent consuming an approximate 70% of the global liquefied natural gas (LNG), and Singapore being at the heart of Asian LNG trade flows, the government of Singapore aspires to transform the country into a centre for LNG trading.
The news comes from Singapore’s Minister of Trade and Industry, whilst demand and importance for natural gas in Asia, and especially China, is growing. The government plans to establish a Secondary Gas Trading market in the state, helping both buyers and sellers to trade gas on a short-term basis domestically.
The Minister plans to seek feedback on a suggested land allocation framework for new power plants. According to the Singaporean Minister, this project will form part of government efforts to sustain energy investments in Singapore and simultaneously address the majority of the country’s future energy needs.
Japan is Asia’s top LNG importer, which also wishes to become an LNG trading hub for the region. Singapore on the other hand is a global trading hub for oil, however critics highlight the fact that it may lack the consumer base to accomplish becoming an LNG hub as well.