4 in 5 energy leaders peg Singapore to be Asia's LNG trading centre in 5 years

Japan and China were also identified as potential hubs.

A survey from Deloitte identified Singapore as the favoured Asian liquefied natural gas (LNG) trading hub.

According to the study, nearly 80% of energy sector leaders from Asia identified Singapore as the country most likely to become the Asian LNG trading hub in the next five to ten years. Japan and China were also identified as other potential hub locations.

Deloitte oil and gas Asia-Pacific regional leader Mark Edmunds said this is due to the city-state's reputation as a commodity trading hub.

“Trading infrastructure and institutional structures are in place, and the country has a strong trading talent pool and strategic geographic location – all factors supporting the development of LNG trading capability. Singapore is home to more than 40 trading organisations today and is quickly becoming the hub of choice for LNG,” he explained.

Over half of the survey respondents or 58% agreed the Platts Japan/Korea Marker (JKM) will be the most widely adopted benchmark for spot LNG trades in Asia in five years, while the SGX LNG Index Group (Sling) is also expected to emerge as an important index for Asian trades.

“With our survey respondents identifying JKM as Asia’s benchmark for LNG spot trades, it is further evidence this is fast becoming the standard LNG pricing benchmark in Asia. The strong support for the SGX is consistent with the likely hub role of Singapore in the region," Edmunds furthered.