The Singapore Exchange is set to start up an index that will track the price of liquefied natural gas in the Middle East and Indian markets. According to The Wall Street Journal, the launch of the new index is the first move to establishing a benchmark for the rapidly growing LNG market.
The Singapore Exchange collaborates with broker Tullett Prebon. The index will track prices for LNG delivered to ports in Dubai, Kuwait and India.
At the moment, there is Singapore SLInG, a spot price index for LNG in the Asian market.
The exchange also signed the memorandum of understanding with Japan’s Tokyo Commodity Exchange (TOCOM) on potential cooperation on derivatives.
The LNG market does not have a benchmark to provide a standard price used throughout the market like Brent or WTI in the oil market.
