Categories: technology, economy
What? The Global LNG Exchange is a Singapore based digital platform being developed for online auctioning of liquefied natural gas (LNG) spot cargo. Current spot and short-term trading is done by hand and information on availability and pricing is rare and difficult to obtain. The digital platform would allow both offers and requests to be posted and anonymously bid on, connecting the winning bidder with the seller.
So what? The digital platform could bring about more liquidity and create a truly global market. A recent drop in Asian prices of LNG has levelled the price discrepancies between regional markets across the globe making the advent of this new digital trading tool a timely innovation as Singapore strives to become a global trading hub for LNG. Trade of LNG has grown quickly in recent years and LNG now contends with other commodities as the second most traded commodity, behind oil. A global market could facilitate the use of LNG as a clean energy alternative for larger adoption projects.