Singapore Exchange Ltd., wanting to establish its role as the energy trading hub in Asia, wants to end the dependence of the liquefied natural gas market on oil for pricing.
To be called Singapore SGX LNG Index Group, the exchange is seeking to unveil futures and swaps tied to its index of spot prices for LNG traded in the region on Monday.
Last settlement for the contracts will be based on average weekly assessments collated from consumers, producers, and traders in the market.
Natural gas may be supercooled and liquefied to deliver it on tankers between locations which are difficult to connect by pipeline.
Singapore houses over 25 LNG trading desks, which transmits approximately 2,000 cargoes close to the country every year.
The material has been provided by InstaForex Company – www.instaforex.com