Panellists at the Asia Gas Market Workshop
By Zheng Huijian
Asia must invest in infrastructure for liquefied natural gas (LNG) to develop new markets and meet its rising demand for energy while diversifying its pricing index to lessen volatility for suppliers and buyers, panellists said on Tuesday at Singapore International Energy Week 2015.
Interconnections are crucial. Beyond physical pipelines such as the evolving Trans-ASEAN pipeline, LNG terminals around Asia can be seen as virtual pipelines linking suppliers and buyers, the panellists said at the Asia Gas Market Workshop.
“Small scale LNG and LNG bunkering will develop in the next five years,” said David Lim, head of corporate and business planning at Singapore’s Pavilion Gas. “Small scale LNG infrastructure such as barges can be cheaper than a conventional gas pipeline.”
Multiple initiatives are under way in Singapore, such as expanding LNG terminal infrastructure and exploring LNG bunkering.
Policy intervention by governments might be needed for successful gas market development as coal is still the cheapest fuel option for power generation, the panellists said.
“Price volatility threatens buyers’ and sellers’ ability to commit to purchasing gas and building infrastructure,” said Lee Seng Wai, director of the Gas Policy and Infrastructure Department at Singapore’s Energy Market Authority. “A new Asian gas index could itself be volatile. Some oil indexation helps to mitigate this volatility.”
About Singapore International Energy Week (SIEW)
In its 8th edition, Singapore International Energy Week is the premier platform in Asia for energy insights, partnerships and dialogue, bringing together the world’s leading conferences, exhibitions and roundtables in one week and one location. SIEW enriches the global energy conversation by convening political, business, academic and energy industry thought-leaders to define and advance the world’s energy challenges, solutions and actions across the spectrum of oil and gas, clean and renewable energy, and energy infrastructure financing.
Please visit www.siew.gov.sg for more information.
About the Energy Market Authority
The Energy Market Authority (EMA) is a statutory board under Singapore’s Ministry of Trade and Industry. Our main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. Through our work, we seek to forge a progressive energy landscape for sustained growth.
Please visit www.ema.gov.sg for more information.