By Eric Yep
Singapore's government agencies and energy companies plan to
create a regional price benchmark for liquefied natural gas in a
bid to become a gas trading hub and give Asian buyers more control
over natural gas prices.
Pavilion Energy, a Temasek portfolio company focused on the LNG
business, said it is working with the Singapore Stock Exchange,
International Enterprise Singapore--a unit of the trade
ministry--and regional governments to develop a Singapore LNG price
marker.
"This will be independent of the oil market and provide more
transparent LNG pricing in the region," Pavilion's Chief Executive
Seah Moon Ming said.
Singapore is already the largest oil and petroleum products
trading hub in Asia. In recent years it has also become a hotspot
for LNG trading with companies like Royal Dutch Shell PLC (RDSA.LN)
and BG Group PLC (BG.LN) moving their LNG trading operations
here.
More recently oil major Chevron Corp. (CVX) and Russian gas
company Yamal LNG also started LNG trading operations here.
Write to Eric Yep at eric.yep@wsj.com
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