Singapore has many of the conditions needed for an Asian LNG hub to develop: good location, attractive tax terms, low country risk and a free-trade mindset.
Situated at the crossroads of major energy consumers and exporters, Singapore is very well placed to tap into the rising Asian trade flows of LNG. In 2015, 400 of the largest commodities trading companies in Singapore had generated more than $1 trillion in turnover and supported over 15,000 jobs, according to the International Enterprise Singapore.
About 40 LNG trading companies have set up shop in Singapore, ten in the last three years alone. The independent trading houses that will likely play an increasingly important role in LNG ? Vitol, Trafigura, and Noble Group among others ? already have a long history in the country.
Japanese companies are also eyeing an early foothold in Singapore?s LNG market. Last June, Toho Gas ? Japan?s largest buyer, after Tokyo Gas and Osaka Gas ? set up its Singapore unit. Japan is also seen as another potential candidate for being the Asian LNG trading hub.
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