SGX may develop Singapore energy price benchmarks in future

06 November 2012 09:13  [Source: ICIS news]

SINGAPORE (ICIS)--The president of the Singapore Exchange (SGX) Muthukrishnan Ramaswami said on Tuesday the bourse is looking at developing energy price benchmarks for Singapore and other parts of the region in future.

“In the overall context of oil trading, Singapore has always been a large oil trading hub. However, the trading that happens is mainly on [the Western] benchmarks such as WTI or Platts…. One of the things we hope to do is over time develop a price benchmark closer to home. [An] Asian benchmark… for delivery out of Jurong,” he said in a press briefing in Singapore.

Jurong, located in the western part of Singapore, is heavily industrialised and is home to various multinational corporations.

No timeline for the future development of the energy price benchmarks out of Singapore was provided.

Muthukrishnan added that he expects the liquefied natural gas (LNG) market to grow rapidly in Singapore in the next few years. 

“Most power [used] here is LNG and coal, [for] some of it. LNG terminals and infrastructure built around here lead us to believe there will soon be a pretty vibrant LNG market traded out of Singapore.”

SGX is Asia’s most internationalised exchange with more than 40% of companies listed on SGX originating from outside of Singapore.

By: Muhamad Fadhil
+65 6780 4356

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