Facts

Norway-Asia Business Review - - Snapshots -

Ac­cord­ing to the IEA, Asia is fore­cast to ab­sorb 80 per­cent of the in­cre­men­tal LNG p. im­ports over the medium term and up to 50 er­cent to 2019.

Last year two of the re­gion’s lead­ing ex­changes – Sin­ga­pore’s SGX and Ja­pan’s TOCOM – an­nounced that they would join forces in or­der to co-list Asian LNG and elec­tric­ity futures. If the bench­mark be­comes re­al­ity, Reuters re­ported, it would shift the LNG mar­ket away from the cur­rent prac­tice of long-term con­tracts to a freely float­ing spot s. mar­ket where buy­ers can pur­chase car­goes at hort no­tice and tai­lor-made vol­umes.

Ac­cord­ing to the IEA, the Ja­panese gov­ern­ment be­gan pub­lish­ing a price in­dex based on spot car­goes in April 2014 with the pur­pose of adding trans­parency to an opaque mar­ket and amidst con­cern about ris­ing fuel costs in the wake of the shut­down of nu­clear power plants af­ter the nu­clear ac­ci­dent.

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