A doorway to Asia
First held in 2008, the Singapore International Energy Week (SIEW) is an annual platform for energy professionals, policymakers and commentators to discuss and share best practices and solutions within the global energy space. SIEW aims to promote the exchange of ideas and discussions on pertinent energy-related issues. At the same time, opportunities are set up for networking and deal making among energy companies converging on the event, as well as to provide a platform to showcase innovative products and solutions in the energy marketplace.
The changing face of Asian Gas
I spoke at the Plenary Session of the Asia Gas Summit, on LNG as the new global commodity. I looked at the changing needs of Asia’s LNG buyers.
There is currently more choice about how LNG could be priced. However, this makes decisions very complex for buyers in the Asian market. As competition increases in Asian energy markets, flexibility and price are becoming more critical to Asia’s buyers.
Buying LNG linked to oil was likened at the session to buying apples linked to the price of oranges. But this is exactly the way the majority of Asian LNG is priced. Our own LNG contract data shows that the amount of oil-indexed LNG contracted in Asia will increase over the next few years. The issue with switching away from oil indexation is that the potential LNG pricing hubs in Asia are at a very early stage of development. Japan and Singapore are both looking to develop price references, which makes it hard for buyers to know which index to back.
Making friends and influencing people
The conference was well organised and well attended. We saw Singapore’s Minister for Trade and Industry, Mr S Iswaran, open the day talking about several of the ways they’re developing Singapore as an LNG hub. And he even quoted Wood Mackenzie data in his presentation.
Overall it was a great opportunity to meet, and learn from, other people across the industry.