Singapore Plans Gas Trading Market

Singapore is planning to establish a gas trading market with an aim to strengthen its position as LNG hub.

Move is on to establish a Secondary Gas Trading Market (SGTM) in Singapore, where gas buyers and sellers can trade gas domestically on a short-term basis, Minister for Trade and Industry (Industry) S. Iswaran said at the opening of Singapore Energy Week on Monday, reported Channel News Asia.

"An SGTM can yield several potential benefits. It will allow domestics 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 supplies with short-term supplies," said Iswaran. "It will also pave the way for the potential establishment of a gas futures market."

The island nation has been active in the LNG space in the last few years. In 2013, Singapore government owned Temasek Holdings has set up a company, Pavilion Energy, to invest in the LNG industry. Pavilion has inked several LNG deals since inception and invested $1.3 billion for a 20 percent stake in three gas blocks offshore Tanzania in East Africa.