Asia’s LNG Market Poised for Price Alternatives, IEA Chief Says

Asia’s LNG Market Poised for Price Alternatives, IEA Chief Says

By Chou Hui Hong  Sep 10, 2013

Asia’s liquefied natural gas market is poised to introduce alternatives to oil-indexed pricing as supply expands from new sources, according to the International Energy Agency. “When you have a more flexible gas market, with more gas being brought to Asia, it will certainly help” lead to new gas-pricing methods, Maria van der Hoeven, executive director of the IEA, said in Tokyo today.An estimated 80 new LNG tankers are under construction in South Korea and Japan and not committed to long-term contracts, helping to increase delivery options, she said. Gas will come to Asia in a couple of years from Russia, which has the world’s largest reserves, as it looks for new markets to replace slowing European and domestic demand, van der Hoeven said. The U.S. has approved exports of LNG from three projects.

“There’s new LNG from North America, new ships being built, and discussion going on in Asia that something needs to be done,” van der Hoeven said.

There have been proposals to move LNG prices away from the market’s traditional oil link toward exchange-traded futures contracts or natural gas benchmarks.

The IEA is also working with the International Energy Forum, OPEC and gas-exporting countries to create a joint data initiative for gas as regional markets become global, van der Hoeven said.

To contact the reporter on this story: Chou Hui Hong in Singapore at chong43@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: