Global Markets

The Asian LNG market is diversifying

The LNG market is developing on more fragmented lines than the oil market, with a range of contenders for price benchmarks emerging in Asia The LNG market is developing on more fragmented lines than the oil market, with a range of contenders for price benchmarks emerging in Asia.
By Peter Stewart 18 October 2017 0 28017
An LNG tanker docked at Singapore's LNG terminal. The Methane Kari Elin delivers first LNG to Singapore’s LNG terminal. (Shell)

After a decade of waiting for an Asian LNG benchmark to emerge, a slew of new contenders are on the horizon. These benchmarks are still proving their mettle, but it looks increasingly that the LNG market will follow a different path to oil, in which a single benchmark has dominated.

While oil trading has been dominated by the Brent benchmark – which has spawned a range of swaps, futures, options and forward contracts from a single reference point – Asian LNG markets are developing on more...