Minister S. Iswaran, Minister in Prime Minister’s Office & Second Minister for Home Affairs and Trade & Industry, delivers the opening remarks of the 3rd Annual Gas Asia Summit 2014.
Delegates listening to Minister S Iswaran’s keynote address at the Gas Asia Summit at SIEW 2014 on Wednesday.
By Lyana Yeow
The global natural gas market is undergoing major changes due to emerging unconventional gas sources, shifting geopolitical dynamics in Russia and the Middle East and evolving energy policies in countries looking for cleaner options, Singapore’s Second Minister for Home Affairs and Trade and Industry S. Iswaran said on Wednesday at Singapore International Energy Week 2014.
Despite the uncertainties, he said, the International Energy Agency estimates that Asia’s gas demand will reach 790 billion cubic metres by 2015, making it the fastest-growing gas market in the world.
“For many countries in the region, gas is no longer just an alternative fuel to oil but an essential part of our energy mix,” Iswaran said in opening remarks at Gas Asia Summit 2014.
But the growth in Asian demand will depend on gas prices, which have always been exposed to oil price volatility, he said. This could be mitigated by adopting alternative price indices that can “help buyers diversify their gas portfolios and reduce their exposure to movements in prices”, Iswaran said.
Diversification of gas contract portfolios is also important, he added.
“Such diversification is essential to enhance the competitiveness, reliability and flexibility of natural gas as a fuel option,” he said. “This, in turn, is key to fostering the long-term sustainable development of the Asian gas market.”
The search for more options, he said, has led to the establishment of trading hubs for liquefied natural gas (LNG) – a potential area of growth in the region.
“LNG trading hubs will serve as a platform for efficient market outcomes and market reflective prices,” Iswaran said.
Singapore is now exploring a few potential sites in the eastern part of the city-state to build a second LNG terminal and is developing transparent rules to support ancillary LNG activities, he said.
“Policy makers and industry leaders have to work in tandem to ensure that domestic markets and infrastructure are able to support the continued availability of a secure and competitive energy supply for end users,” Iswaran said.
About Singapore International Energy Week (www.siew.gov.sg)
The 7th annual SIEW 2014 is the foremost platform for top policymakers, energy practitioners and commentators to discuss energy issues, strategies and solutions. SIEW brings together a robust line-up of world's leading conferences, exhibitions, roundtables and networking events to provide insights and perspectives on the emerging trends and innovations across the energy spectrum of oil & gas, clean and renewable energy, and energy infrastructure financing – in one week, one location. Please visit www.siew.gov.sg for further information.