Backed by trading infrastructure and institutional structures, Singapore has emerged as the preferred Asian liquefied natural gas (LNG) trading hub, according to a survey firm Deloitte.
A poll of senior energy sector leaders found that four out of five voted Singapore as the country most likely to become the Asian LNG trading hub in the next five to 10 years. The poll was conducted at the first annual Energy Trading Summit which was organised last week in Singapore
Mark Edmunds, Deloitte oil and gas Asia-Pacific regional leader, said, “Singapore’s world class reputation as a commodity trading hub makes it an obvious choice. 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.”
In addition to this, survey respondents identified Australia, Qatar and the United States as the top three LNG exporters to Asia in five years.
Notably, LNG is famously called the fuel of the future due to its environmentally friendly characteristics. Its zero sulphur content and relatively low levels of nitrogen oxide emission mean that LNG outperforms other conventional marine fuel on a local emissions basis.
The Singapore Government will tax emitters of greenhouse gases for every tonne of gas they release into the air from 2019 onwards. For the marine industry, the International Maritime Organisation has set a 2020 deadline for marine fuel sulphur to be capped at 0.5 per cent from the current 3.5 per cent limit.
Within the next three years, the shipping industry will be forced to look for alternative and cleaner fuels, and LNG is one of the solutions.
Even Koh Poh Koon, Senior Minister of State, Ministry of Trade and Industry reiterated about cleaner marine fuels, “As the world’s largest bunkering port, Singapore remains committed to ensuring that the maritime industry has access to cleaner marine fuels. We plan to be LNG bunker-ready as early as 2020. He was speaking at the Pavilion Energy LNG bunkering launch ceremony on Tuesday.