Tocom and Sgx believe Japan and Singapore would play an important role in enhancing price discovery of spot LNG in Asia, a critical component of the industry’s move towards gas-on-gas pricing based on an Asian LNG price, away from long-term contracts and pricing linked to oil.
Areas of cooperation would include joint study of the benefits of product initiatives, such as the co-listing of LNG derivatives based on relevant indices, joint study of synergies between the market distribution networks of Tocom and Sgx, joint promotion and development activities and sharing of experiences in developing the electricity market in their respective jurisdictions.
Meanwhile, Tocom November 22 also signed a MoU with S&P Global Platts to co-operate in developing active markets and benchmark prices for Japanese domestic oil refined products and LNG in Asia.
Asia is the biggest importer of LNG accounting for almost 60% of the share of global LNG demand.
Source: Natural Gas World
By Shardul Sharma